weizhixiang(605089) 国泰君安·2024-11-05 05:09Investment Rating - The report maintains a "Buy" rating for the company [4] Core Views - The company's revenue and profit decline has narrowed, primarily due to a lower base and stabilization in some product prices, with demand expected to gradually recover [2] - The company is projected to benefit from policy boosts and an anticipated recovery in downstream demand, leading to an overall valuation rebound in the industry [3] - The target price has been raised to 24.90 CNY, reflecting a 30X PE for 2025, indicating a significant potential upside from the current price of 21.10 CNY [4] Financial Performance Summary - For the first three quarters of 2024, the company reported revenue of 511 million CNY, a year-on-year decline of 17.50%, and a net profit attributable to shareholders of 68 million CNY, down 36.83% [3] - In Q3 2024, the company achieved revenue of 183 million CNY, a year-on-year decrease of 9.19%, with a net profit of 25 million CNY, down 21.81% [3] - The gross margin for Q3 2024 was 25.9%, a decrease of 0.3 percentage points year-on-year, with a net profit margin of 13.9%, down 2.2 percentage points year-on-year [3] Strategic Initiatives - The company is upgrading its stores and developing an O2O model to enhance service coverage and boost single-store sales, while also strengthening support for distributors and expanding group meal services [3] - The pricing strategy focuses on maintaining gross margins and enhancing brand strength, with expectations for demand to gradually improve [3]