OPPEIN(603833) Haitong Securities·2024-11-04 05:42Investment Rating - The investment rating for the company is "Outperform the Market" [2] Core Views - The report highlights that the company has experienced a decline in revenue and net profit for the first three quarters of 2024, with revenue at 13.88 billion yuan, down 16.21% year-on-year, and net profit at 2.03 billion yuan, down 12.08% year-on-year [5][6] - The company's gross margin has improved slightly, reaching 35.54%, an increase of 1.6 percentage points year-on-year, despite a rise in expense ratios [5] - The report anticipates a decrease in net profit for 2024 and 2025, adjusting forecasts from 2.9 billion yuan and 3.1 billion yuan to 2.6 billion yuan and 2.7 billion yuan respectively, reflecting a year-on-year change of -14% and +4% [6] Summary by Sections Financial Performance - For Q3 2024, the company reported revenue of 5.3 billion yuan, a decrease of 21.21% year-on-year, and a net profit of 1.04 billion yuan, down 11.56% year-on-year [5] - The company’s revenue from various product lines showed declines, with kitchen cabinets and wardrobes down 21.99% and 18.99% respectively [5][6] Channel Performance - Revenue from direct stores increased by 4.09% to 5.3 billion yuan, while revenue from distribution stores and bulk business decreased by 18.90% and 12.33% respectively [6] - The total number of stores decreased to 8,180, down 536 from the end of 2023, due to adjustments in distributor operations and management policies [6] Valuation and Forecast - The report suggests a reasonable valuation range for the company at 66.5 to 75.3 yuan based on a PE ratio of 15-17 times for 2025 [6] - The forecast for overall revenue for 2024 is set at 19.33 billion yuan, reflecting a year-on-year decline of 15.2% [7][10]