Vats Liquor Chain Store Management Joint Stock (300755) EBSCN·2024-11-04 10:08Investment Rating - The report maintains an "Accumulate" rating for the company [4][6]. Core Views - The company reported a revenue decline of 5.10% year-on-year for the first three quarters of 2024, with a net profit decrease of 27.36% [1][4]. - The company is actively promoting the upgrade of its 3.0 store model and focusing on the customized model for the Hehua brand [3][4]. - Due to underperformance in customized liquor sales and uncertainties in the liquor industry recovery, the earnings per share (EPS) forecasts for 2024, 2025, and 2026 have been reduced by 38%, 40%, and 46% respectively [4][5]. Financial Performance Summary - For the first three quarters of 2024, the company achieved a revenue of 78.32 billion yuan, a decrease of 5.10% year-on-year, and a net profit of 1.68 billion yuan, down 27.36% year-on-year [1]. - In the third quarter of 2024, the company reported a revenue of 18.89 billion yuan, a decline of 20.84% year-on-year, and a net profit of 0.13 billion yuan, down 84.17% year-on-year [1][2]. - The comprehensive gross margin for the first three quarters of 2024 was 10.02%, a decrease of 0.98 percentage points year-on-year [1][2]. Expense Ratio Summary - The expense ratio for the first three quarters of 2024 was 7.39%, down 0.84 percentage points year-on-year [2]. - In the third quarter of 2024, the expense ratio was 8.20%, a decrease of 0.38 percentage points year-on-year [2]. Strategic Initiatives - The company is pushing for the 3.0 store upgrade, creating a new model that integrates premium liquor, high-end dining, and entertainment [3]. - The company is focusing on the Hehua brand, hosting events to promote high-end customization [3].