Yanghe(SZ:002304) Tianfeng Securities·2024-11-04 00:41Investment Rating - The investment rating for the company is "Buy" with a target price of 80.52 CNY [5] Core Views - The company reported Q3 2024 revenues of 4.641 billion CNY, a decrease of 44.82% year-on-year, with net profit attributable to the parent company dropping by 73.03% to 631 million CNY [1] - The company is facing pressure in the mid-to-high-end and banquet markets, leading to a forecasted decline in revenue and profit for 2024-2026 [3] - The company is actively adjusting its operational pace and focusing on strengthening banquet channels and inventory indicators [3] Financial Performance Summary - Q3 2024 gross margin decreased by 8.63 percentage points to 66.24%, and net margin decreased by 14.38 percentage points to 13.52% [2] - Operating cash flow for Q3 2024 fell by 65.31% year-on-year to 1.415 billion CNY, indicating cash flow pressure [2] - The company’s revenue projections for 2024-2026 are 29.656 billion CNY, 28.999 billion CNY, and 30.430 billion CNY, representing declines of 10.75% and 1.91% in 2024 and 2025, respectively [3][4] Financial Data and Valuation - The company’s projected net profit for 2024-2026 is 8.215 billion CNY, 8.276 billion CNY, and 8.736 billion CNY, with a corresponding PE ratio of 14.77X, 14.66X, and 13.89X [4][9] - The company’s total assets are projected to reach 79.663 billion CNY by 2024, with a debt-to-asset ratio of 23.54% [8][9] - The company’s EBITDA for 2024 is estimated at 10.647 billion CNY, reflecting a significant decrease from previous years [4][9]