GUJING(000596) Haitong Securities·2024-11-05 02:42Investment Rating - The investment rating for the company is "Outperform the Market" and is maintained [1] Core Views - The company reported a total revenue of 19.069 billion yuan for the first three quarters of 2024, representing a year-on-year increase of 19.5%, with a net profit attributable to shareholders of 4.746 billion yuan, up 24.5% year-on-year [4] - In Q3 2024, the company achieved a revenue of 5.263 billion yuan, a year-on-year growth of 13.4%, and a net profit of 1.174 billion yuan, increasing by 13.6% year-on-year [4] - The company is benefiting from strong performance in its key products and is focusing on expanding its market presence outside its home province [4][5] Summary by Sections Financial Performance - The company’s revenue for 2024 is projected to be 24.309 billion yuan, with a net profit of 5.758 billion yuan, reflecting a year-on-year growth of 25.5% [7] - The earnings per share (EPS) for 2024 is estimated at 10.89 yuan, with projected EPS for 2025 and 2026 at 12.69 yuan and 14.35 yuan respectively [6][9] Profitability and Margins - The gross margin for Q3 2024 was reported at 77.9%, a decrease of 1.55 percentage points year-on-year, attributed to product mix issues [5] - The company has shown strong cash flow performance, with operating cash flow increasing by 34.6% year-on-year to 1.334 billion yuan in Q3 2024 [5] Market Position and Strategy - The company is focusing on enhancing its provincial market strength while also pushing for national expansion, which is expected to drive positive channel development [4] - The company’s sales expense ratio decreased by 5.32 percentage points year-on-year to 23.0%, indicating improved cost management [5] Valuation - The company is assigned a P/E ratio of 20-25 times for 2024, leading to a fair value range of 217.84 to 272.30 yuan per share [6]