King's Luck(603369) 中银证券·2024-11-04 03:30Investment Rating - The report maintains a "Buy" rating for the company, with a market price of RMB 44.48 and a sector rating of "Outperform" [2]. Core Insights - The company reported a revenue of RMB 99.4 billion for the first three quarters of 2024, representing a year-on-year increase of 18.9%, and a net profit attributable to shareholders of RMB 30.9 billion, up 17.1% year-on-year [4]. - In Q3 2024, the company's revenue was RMB 26.4 billion, a 10.1% increase year-on-year, while the net profit was RMB 6.2 billion, reflecting a 6.6% year-on-year growth [4]. - The company is actively adjusting its operational pace and focusing on deepening its market presence within the province, maintaining a strong competitive advantage [4]. Summary by Sections Financial Performance - For Q3 2024, the company achieved a revenue of RMB 26.4 billion and a net profit of RMB 6.2 billion, with respective year-on-year growth rates of 10.1% and 6.6% [6]. - The company's gross margin for Q3 2024 was 75.6%, down 5.1 percentage points year-on-year, primarily due to increased promotional efforts [6]. - The company’s total revenue for the first three quarters of 2024 reached RMB 99.4 billion, with a net profit of RMB 30.9 billion, marking an 18.9% and 17.1% increase year-on-year, respectively [4][6]. Market Strategy - The company is focusing on its core products, with the premium product line (priced above RMB 300) generating RMB 18.1 billion in revenue, accounting for 68.8% of total revenue [4]. - The company has expanded its distributor network to 1,193, with 588 distributors in the province and 605 in other regions, indicating a strategic focus on both local and external markets [4]. Valuation and Forecast - The report adjusts the revenue growth forecast for 2024 to 17.2%, with net profit growth projected at 16.1% [5]. - The expected earnings per share (EPS) for 2024 is RMB 2.90, with corresponding price-to-earnings (P/E) ratios of 15.3X for 2024, 13.5X for 2025, and 11.9X for 2026 [5].