Yowant Technology(002291) 国盛证券·2024-11-08 01:17Investment Rating - The report maintains a "Buy" rating for Yaowang Technology (002291 SZ) [3] Core Views - Yaowang Technology's Q3 2024 revenue declined by 13 52% YoY to 1 021 billion yuan while net loss narrowed to -190 million yuan from -242 million yuan in the same period last year [1] - The company is actively expanding its live e-commerce business with a 50% YoY increase in GMV to 9 3 billion yuan in H1 2024 and exploring overseas markets IP monetization and instant retail [1] - Despite revenue growth of 16 10% YoY in the first three quarters of 2024 the company remains unprofitable with a net loss of -408 million yuan [1] Financial Performance - Q3 2024 gross margin decreased by 0 44pct YoY to 3 13% while operating expenses increased by 3 25pct YoY to 21 30% [1] - The company's revenue is expected to grow to 5 638 billion yuan in 2024 6 634 billion yuan in 2025 and 7 752 billion yuan in 2026 [2] - Net loss is projected to narrow from -465 million yuan in 2024 to -193 million yuan in 2025 and turn positive at 109 million yuan in 2026 [2] Business Expansion - The company has established an overseas live streaming operations team and is exploring international live e-commerce markets [1] - It has leveraged its IP resources to produce variety shows and short dramas with short drama business generating over 160 million yuan in recharge revenue in H1 2024 [1] - Yaowang Technology has entered the instant retail market with the X27 MINI front warehouse project in Hangzhou [1] Industry Position - Yaowang Technology is a leading MCN in China's live e-commerce industry with coverage across three major platforms strong supply chain resources and a robust anchor matrix [1] - The company continues to deepen its presence in the live e-commerce sector while facing rising costs due to new consumer projects and industry factors [1]