Hongqi Chain(002697)2024-11-04 07:41Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for its performance relative to the market [4]. Core Views - The company reported a revenue of 7.77 billion yuan for the first three quarters of 2024, a year-on-year increase of 1.65%, while the net profit attributable to shareholders decreased by 4.21% to 390 million yuan [4]. - The company is optimizing its store layout and enhancing its self-operated products to seek stable growth, focusing on improving customer experience and sales efficiency [4]. - The gross profit margin slightly decreased to 29.13%, with a net profit margin of 5.02%, reflecting a decline compared to the previous year [4]. - The company plans to divest 20% of its stake in Gansu Hongqi to focus on its core operations in Chengdu, which is seen as a strategic move to eliminate underperforming assets [4]. - The profit forecast for 2024, 2025, and 2026 is adjusted to 566 million, 597 million, and 621 million yuan respectively, reflecting a downward revision due to investment income fluctuations [4]. Summary by Sections Market Data - Closing price as of November 1, 2024, was 5.06 yuan, with a one-year high of 5.91 yuan and a low of 4.03 yuan [2]. - The company has a market capitalization of 5,453 million yuan and a price-to-book ratio of 1.6 [2]. Financial Data - As of September 30, 2024, the company had a net asset value per share of 3.19 yuan and a debt-to-asset ratio of 47.90% [3]. - The total share capital is 1,360 million shares, with 1,078 million shares in circulation [3]. Revenue and Profit Forecast - The total revenue for 2024 is projected to be 10.385 billion yuan, with a year-on-year growth rate of 2.5% [5]. - The gross profit margin is expected to stabilize around 29.4% for the coming years [5]. - The return on equity (ROE) is forecasted to be 12.5% in 2024, decreasing slightly in subsequent years [5].