QM HOME(603818) 华创证券·2024-11-10 13:51Investment Rating - The report maintains a "Strong Buy" rating for the company with a target price of 4.07 CNY per share, compared to the current price of 3.27 CNY [1]. Core Insights - The company reported a revenue of 2.64 billion CNY and a net profit attributable to shareholders of -150 million CNY for the first three quarters of 2024, showing a year-over-year revenue decline of 10.0% but a net profit increase of 29.4% [1]. - The domestic market remains under pressure, while overseas orders are showing signs of recovery. The company is focusing on core business enhancement, cost optimization, and asset commercialization to improve profitability [1]. - The gross margin for Q3 2024 was reported at 36.8%, an increase of 3.9 percentage points year-over-year, indicating a trend of improving profitability [1]. Financial Summary - For 2023, the total revenue is projected at 4.028 billion CNY, with a year-over-year decline of 17.0%. The net profit attributable to shareholders is expected to be -304 million CNY, reflecting a significant decrease of 923.1% [2]. - The company anticipates a gradual recovery in net profit, projecting -176 million CNY for 2024, followed by a positive net profit of 100 million CNY in 2025 and 161 million CNY in 2026 [2]. - The price-to-earnings ratio is expected to be 22 for 2025 and 14 for 2026, indicating a potential valuation improvement as profitability returns [2]. Market Performance - The company has experienced a significant decline in stock performance over the past 12 months, with a drop of 61% compared to the benchmark index [4].