GONGNIU(SH:603195) GOLDEN SUN SECURITIES·2024-11-05 00:44Investment Rating - The report maintains a "Buy" rating for the company [4] Core Views - The company reported a revenue of 4.217 billion yuan in Q3 2024, representing a year-on-year increase of 5.0%, and a net profit attributable to shareholders of 1.025 billion yuan, up 3.4% year-on-year [1] - Despite a slight decline in revenue growth due to weak consumer demand, the company's profit remained stable due to improved supply chain capabilities and product structure upgrades [1] - The company is expected to see significant growth in new products such as electric tools and bladeless fan lights, while traditional products like converters and wall sockets continue to perform well [2] Summary by Sections Financial Performance - In Q3 2024, the gross margin was 43.5%, a decrease of 1.2 percentage points year-on-year, while the net profit margin was 24.3%, down 0.4 percentage points year-on-year [3] - The company’s operating cash flow for Q3 2024 was 655 million yuan, a decrease of 387 million yuan year-on-year, indicating stable operational capacity [3] - The company forecasts net profits of 4.361 billion yuan, 4.764 billion yuan, and 5.187 billion yuan for 2024, 2025, and 2026 respectively, with corresponding P/E ratios of 22X, 20X, and 18X [3] Market Position and Strategy - The company is actively expanding its channels in the new energy sector, with a focus on launching innovative products such as flexible adapters and unbreakable sockets [2] - The flagship store strategy has shown significant results, with total sales during the autumn home decoration festival reaching 623 million yuan, a 131% increase compared to the spring festival [2] - The company is enhancing its marketing strategies to adapt to the challenging real estate environment, achieving growth across all product categories [2]