weizhixiang(605089) 中泰证券·2024-11-03 11:41Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected relative performance increase of over 15% compared to the benchmark index within the next 6 to 12 months [2][8]. Core Views - The company is experiencing operational pressure but is expected to improve in the future. The report highlights the slow recovery of consumer demand and the gradual increase in the penetration rate of prepared dishes, which is affecting revenue growth [2][3][4]. - The company is focusing on expanding its retail channels, particularly in the East China region, and is optimizing its store operations while encouraging capable store owners to open multiple locations. Additionally, it is deepening cooperation with hotel and catering clients through a "1+N" model [2][4]. Financial Performance Summary - For the first three quarters of 2024, the company reported revenues of 511 million yuan, a year-on-year decrease of 17.5%, and a net profit of 68 million yuan, down 36.83% year-on-year. In Q3 alone, revenues were 183 million yuan, a decline of 9.19% year-on-year [3][4]. - The revenue breakdown by product for Q3 2024 shows declines across various categories, with beef, poultry, and seafood products experiencing decreases of 5.31%, 7.65%, and 6.19% respectively [4]. - The company’s gross margin for Q3 2024 was 25.91%, reflecting a slight year-on-year decrease of 0.34 percentage points, indicating ongoing pressure on profitability [4]. Revenue and Profit Forecast - The projected revenues for 2024, 2025, and 2026 are 681 million yuan, 708 million yuan, and 753 million yuan respectively, with net profits expected to be 88 million yuan, 93 million yuan, and 99 million yuan for the same years [2][3]. - The report anticipates a decline in earnings per share (EPS) for 2024 to 0.64 yuan, with a gradual recovery expected in subsequent years [2][3].