Yanghe(002304) 中银证券·2024-11-05 12:18Investment Rating - The report maintains a "Buy" rating for the company [1][3] Core Views - The company has actively reduced inventory and adjusted its delivery pace, leading to a significant decline in revenue for Q3 2024, with a year-on-year decrease of 44.8% [3][5] - The company is expected to recover its fundamentals after a deep adjustment period, with a projected revenue growth of -10.2%, +1.1%, and +6.9% for 2024-2026 [3][4] - The company plans to distribute cash dividends amounting to no less than 70% of the net profit attributable to shareholders for the years 2024-2026, with a dividend yield exceeding 5% [3][4] Summary by Sections Financial Performance - For the first three quarters of 2024, the company achieved revenue of 27.52 billion RMB, down 9.1% year-on-year, and a net profit of 8.58 billion RMB, down 15.9% year-on-year [3][5] - In Q3 2024, the company reported revenue of 4.64 billion RMB and a net profit of 631 million RMB, reflecting a year-on-year decline of 44.8% and 73.0% respectively [5][6] Revenue and Profitability - The gross margin for Q3 2024 was 66.2%, a decrease of 8.6 percentage points year-on-year, attributed to product mix adjustments and increased promotional expenses [3][5] - The company’s operating cash flow for Q3 2024 was 1.41 billion RMB, down 65.3% year-on-year, indicating pressure on cash flow [3][5] Valuation Metrics - The projected earnings per share (EPS) for 2024, 2025, and 2026 are 5.36 RMB, 5.48 RMB, and 5.88 RMB respectively, with corresponding price-to-earnings (PE) ratios of 15.4X, 15.1X, and 14.1X [4][6] - The company’s total market capitalization is approximately 129.78 billion RMB, with a circulating share count of 1,506.45 million [2][4]