SCSF(SH:600779) Southwest Securities·2024-11-04 04:30Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company achieved a revenue of 3.79 billion yuan in the first three quarters of 2024, representing a year-on-year increase of 5.6%, and a net profit attributable to shareholders of 1.13 billion yuan, up 10.0% year-on-year [1] - The third quarter revenue was 2.07 billion yuan, a slight increase of 0.4% year-on-year, while net profit for the same period was 880 million yuan, up 7.7% year-on-year [1] - Despite a weak external consumption environment, the company managed to achieve slight revenue growth due to strong brand power and healthy channel inventory [2] Summary by Relevant Sections Financial Performance - The company reported a gross margin of 84.6% in Q3, an increase of 0.9 percentage points year-on-year [1] - The selling expense ratio decreased significantly by 4.0 percentage points to 8.4% in Q3, while the overall expense ratio fell by 3.2 percentage points to 12.3% [1] - The net profit margin improved by 2.9 percentage points to 42.6% in Q3 [1] Revenue Breakdown - For the first three quarters, high-end and mid-range product revenues were 3.46 billion yuan and 200 million yuan, respectively, with year-on-year growth of 1.4% and 41.0% [1] - In Q3 alone, high-end and mid-range revenues were 1.94 billion yuan and 100 million yuan, with year-on-year changes of -2.0% and +87.2% [1] Market Strategy - The company is focusing on product upgrades, brand premiumization, and marketing breakthroughs, which are expected to enhance brand reputation and influence [2] - The company is actively expanding its marketing team and deepening its core market presence while exploring new markets for growth [2] Earnings Forecast - The expected EPS for 2024, 2025, and 2026 are 2.81 yuan, 3.03 yuan, and 3.24 yuan, respectively, with corresponding PE ratios of 16, 15, and 14 [2]