Buydeem Group(SZ:300824) Guotai Junan Securities·2024-11-03 23:39Investment Rating - The report maintains a "Cautious Accumulate" rating for the company with a target price of 9.50 yuan, up from a previous forecast of 7.72 yuan [1][12]. Core Views - The report anticipates that national subsidy policies will drive a continuous recovery in revenue, alongside improvements in operational efficiency due to cost reduction and efficiency enhancement measures [2]. - The company is in a store expansion phase, leading to significant initial investments, while facing intense industry competition [4]. Summary by Sections Performance Overview - For the first three quarters of 2024, the company achieved a revenue of 506 million yuan, a year-on-year increase of 7.19%, with a net profit attributable to shareholders of 39 million yuan, down 25.74% year-on-year. In Q3 2024, revenue was 184 million yuan, up 22% year-on-year, while net profit was 7 million yuan, down 52.7% year-on-year [15]. Domestic and Overseas Revenue Growth - In Q3 2024, the company's domestic brand business in China grew by 19% year-on-year, while overseas business surged by 172%. The OEM/ODM business remained stable with an 8% year-on-year increase. Increased investment in brand development significantly boosted domestic sales [16]. Margin and Expense Analysis - The gross margin for the first three quarters of 2024 was 47.36%, a decrease of 1.84 percentage points year-on-year, with a net margin of 7.68%, down 3.41 percentage points year-on-year. In Q3 2024, the gross margin was 44.56%, down 1.25 percentage points year-on-year, and the net margin was 3.78%, down 5.98 percentage points year-on-year. The increase in expense ratios was noted, with sales, management, R&D, and financial expense ratios for Q3 2024 being 29.23%, 7.49%, 5.42%, and 1.38%, respectively [17]. Cash Flow and Financial Health - As of Q3 2024, the company had cash and cash equivalents plus trading financial assets totaling 452 million yuan, down 203 million yuan year-on-year. Inventory stood at 115 million yuan, up 7 million yuan year-on-year, and accounts receivable totaled 49 million yuan, up 8 million yuan year-on-year. The turnover days for inventory, accounts receivable, and accounts payable were 112, 19, and 37 days, respectively, showing improvements [18].