EASYHOME(000785) 兴业证券·2024-11-10 04:04Investment Rating - The report maintains an "Overweight" rating for the company [3][7]. Core Insights - The company reported a decline in revenue and profit for Q3 2024, with revenue, net profit attributable to shareholders, and net profit excluding non-recurring items at 9.479 billion, 732 million, and 816 million yuan respectively, showing year-on-year decreases of 2.72%, 36.42%, and 31.04% [1]. - The revenue pressure is primarily attributed to rent reductions due to declining real estate and consumer sentiment, leading to lower sales in retail spaces. However, with the gradual recovery of the real estate market and the implementation of trade-in policies, the company expects rental income to improve in Q4 2024 [1][2]. - Profitability has been impacted by changes in revenue structure, with gross margin and net profit margin for Q1-Q3 2024 at 29.33% and 7.72%, down 5.66 percentage points and 4.09 percentage points year-on-year. For Q3 2024, these margins were 21.25% and 4.12%, reflecting a decline of 9.49 percentage points and 4.40 percentage points year-on-year [2]. - The company is focused on cost reduction and efficiency improvement, with a decrease in expense ratios across sales, management, R&D, and financial expenses [2]. - The company is benefiting from policy support aimed at boosting home consumption, with expectations for a return to growth in its core business as new policies take effect [2]. - The company plans to change its stock name to "Juran Smart Home" to reflect its digital transformation strategy, having established several digital platforms and smart home experience centers [3]. - The profit forecast has been adjusted, with expected net profits for 2024 and 2025 at 1.008 billion and 1.155 billion yuan, representing year-on-year declines of 22.5% and growth of 14.6% respectively [3]. Financial Summary - As of November 5, 2024, the company's closing price was 2.92 yuan, with a total share capital of 6.287 billion shares and a net asset value of 20.298 billion yuan [4]. - The projected revenue for 2024 is 13.440 billion yuan, with a slight year-on-year decrease of 0.5%, and a projected net profit of 1.008 billion yuan, down 22.5% year-on-year [5][6].