Joyoung(002242) 申万宏源·2024-11-04 03:15Investment Rating - The report maintains a "Buy" rating for the company, citing a 5% upside potential compared to the industry average PE ratio of 21.9x for 2025 [5] Core Views - The company's performance in 2024Q1-3 fell short of expectations, with revenue declining 9% YoY to 6.182 billion yuan and net profit attributable to shareholders plummeting 73% YoY to 98 million yuan [7] - Domestic sales remain sluggish, but a recovery is expected in Q4 due to government subsidies for appliance replacements [8] - The company has increased its related-party transaction quota with JS Global Life to 11.34 million USD, reflecting growing synergies in overseas markets [8] - Profit margins are under pressure due to rising expense ratios, with Q3 sales expenses increasing 8.07 percentage points YoY to 19.12% [9] Financial Performance - The company's 2024E revenue is projected at 9.107 billion yuan, a 5.3% YoY decline, with net profit expected to drop 61.7% to 149 million yuan [5] - For 2025E, revenue is forecast to grow 10.7% to 10.085 billion yuan, with net profit surging 145.6% to 366 million yuan [5] - Gross margin remains stable at around 26.6% for 2024E, with ROE expected to improve from 4.3% in 2024E to 10.6% in 2026E [6] Market Data - The stock closed at 10.00 yuan on November 1, 2024, with a PB ratio of 2.2x and a dividend yield of 1.50% [4] - The company's market capitalization stands at 7.657 billion yuan, with a 52x PE ratio for 2024E [5] Industry Context - The kitchen appliance sector remains challenging, with overall retail sales declining 4.6% YoY in 2024Q1-3, despite a 0.2% increase in unit sales [8] - The company is focusing on channel reform and new product categories like cleaning appliances to drive future growth [5]