M&G(SH:603899) Guotou Securities·2024-11-07 10:23Investment Rating - The investment rating for the company is maintained at "Buy-A" with a target price of 39.80 CNY [6][14]. Core Views - The company has shown steady revenue growth, with a reported revenue of 17.114 billion CNY for the first three quarters of 2024, representing a year-on-year increase of 7.91%. However, the net profit attributable to shareholders decreased by 6.63% to 1.022 billion CNY during the same period [2][12]. - The company is undergoing active reforms to adapt to market pressures, focusing on product quality enhancement, channel optimization, and brand influence improvement [3][4]. - The company is expected to achieve revenue growth in the coming years, with projected revenues of 24.8529 billion CNY, 27.9627 billion CNY, and 31.4705 billion CNY for 2024, 2025, and 2026 respectively, reflecting growth rates of 6.43%, 12.51%, and 12.54% [14][15]. Financial Performance - For the first three quarters of 2024, the company's gross margin was 19.78%, a decrease of 0.61 percentage points year-on-year. The gross margin for Q3 2024 was 20.46%, down 1.40 percentage points year-on-year [12]. - The company managed to control its expense ratio well, with a total expense ratio of 12.43% for the first three quarters of 2024, an increase of 0.58 percentage points year-on-year [13]. - The net profit margin for the first three quarters of 2024 was 6.24%, a decline of 1.13 percentage points year-on-year [13]. Market Strategy - The company is actively expanding its international market presence and optimizing its retail operations to adapt to changing consumer habits [3][4]. - The company has implemented a multi-channel strategy, enhancing its online business through platforms like Pinduoduo, Douyin, and Kuaishou, which has contributed to a significant increase in online sales [4][5].