Yanghe(002304) 长江证券·2024-11-08 06:28Investment Rating - The investment rating for the company is "Buy" and it is maintained [3]. Core Views - The company is currently focusing on inventory reduction and optimizing channel relationships, which has led to pressure on the third-quarter financial results [4][5]. - The company's revenue for the first three quarters of 2024 was 27.516 billion yuan, a year-on-year decrease of 9.14%, while the net profit attributable to the parent company was 8.579 billion yuan, down 15.92% [4]. - In Q3 2024, the total revenue was 4.641 billion yuan, reflecting a significant year-on-year decline of 44.82%, and the net profit attributable to the parent company dropped by 73.03% to 631 million yuan [4][5]. - The company has experienced a notable decline in gross margin, which fell by 8.63 percentage points to 66.24% in Q3 2024, primarily due to pressure on high-end products and increased expenses to assist distributors in inventory reduction [5]. - The company has implemented internal reforms, clarifying product and channel strategies, and stabilizing personnel, which is expected to lead to a recovery in growth after a phase of adjustment [5]. Financial Summary - The company's cash flow from sales and services received in the first three quarters of 2024 was 24.232 billion yuan, a decrease of 5.13% year-on-year, with Q3 cash flow at 6.42 billion yuan, down 33.49% [4]. - The projected earnings per share (EPS) for 2024, 2025, and 2026 are 5.53 yuan, 5.17 yuan, and 5.21 yuan respectively, with corresponding price-to-earnings (PE) ratios of 15, 16, and 15 times [5].