SPZP(SZ:300616) Changjiang Securities·2024-11-08 06:27Investment Rating - The investment rating for the company is "Accumulate" and is maintained [8]. Core Insights - The company reported a revenue of 2.732 billion yuan for the first three quarters of 2024, a decrease of 22% year-on-year, with a net loss attributable to shareholders of 114 million yuan [3][4]. - In Q3 2024, the revenue was 1.022 billion yuan, down 29% year-on-year, with a net loss of 8 million yuan [3][4]. - The company is focusing on its traditional strengths in customization and supporting businesses, aiming for high-quality development [4][6]. Summary by Sections Financial Performance - The company experienced a significant decline in revenue and profitability in 2024, with Q3 showing a 29% drop in revenue compared to the previous year [3][4]. - The gross margin decreased by 1.0 percentage points in Q3, while various expense ratios increased, indicating pressure on overall profitability [4]. Business Strategy - The company is implementing a channel transformation, emphasizing a self-operated franchise model and launching a "9 Cities 500 Stores" initiative to support young entrepreneurs [4][5]. - The focus is on enhancing the efficiency of the entire channel and deepening terminal coverage, particularly in lower-tier cities [5][6]. Market Opportunities - The company is benefiting from government subsidies in the home furnishing sector, with positive responses from dealers in regions with strong policy foundations [5][6]. - The company is actively expanding its overseas presence under the Sunpina brand, targeting markets in the Middle East, Southeast Asia, and Africa [4][6]. Future Outlook - The company aims to achieve a net profit of approximately -1.08 billion yuan in 2024, with a projected recovery to 620 million yuan in 2025 [6].