水星家纺：三季度业绩承压，回购彰显公司发展信心

Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 14.4 RMB based on a 12x PE valuation for 2024 [2][4][7]. Core Insights - The company reported a revenue of 2.683 billion RMB for the first three quarters of 2024, a year-on-year decrease of 2.57%, and a net profit attributable to the parent company of 210 million RMB, down 16.8% year-on-year. In Q3 2024, revenue and net profit decreased by 8.38% and 22.8% respectively [1]. - The company's e-commerce subsidiary, Mercury E-commerce, generated 970 million RMB in revenue in H1 2024, a decline of 3.9%, while offline business (excluding Mercury E-commerce) achieved 840 million RMB, a growth of 6.2%, attributed to ongoing store expansion [1]. - The gross margin in Q3 2024 increased by 0.2 percentage points to 40.5%, likely due to product mix improvements, while the net profit margin decreased by 1.4 percentage points to 7.3% [1]. - The company has approved a share buyback plan using 50 million to 75 million RMB of its own funds, with a buyback price not exceeding 18.26 RMB per share, reflecting confidence in its development [1]. - The company continues to focus on its brand strategy "Good Bedding Selection Mercury," investing in product technology and differentiation, enhancing its core competitiveness [1]. - In the medium to long term, the company aims to deepen its presence in lower-tier cities, leveraging consumer insights and e-commerce channel accumulation, aligning with the current trend of consumption downgrade amid macroeconomic uncertainties [1]. Financial Summary - The company’s revenue for 2022 was 3.664 billion RMB, with a projected revenue of 4.061 billion RMB for 2024, reflecting a year-on-year decrease of 3.5% [3]. - The net profit attributable to the parent company is expected to be 316 million RMB in 2024, down 16.6% from 2023 [3]. - The earnings per share (EPS) for 2024 is projected at 1.20 RMB, with subsequent years showing an increase to 1.34 RMB in 2025 and 1.52 RMB in 2026 [3][7].