GOLDENHOME(SH:603180) Huachuang Securities·2024-11-11 03:17Investment Rating - The report maintains a "Strong Buy" rating for the company with a target price of 25.77 CNY per share, compared to the current price of 20.95 CNY [1]. Core Insights - The company reported a revenue of 2.42 billion CNY and a net profit attributable to shareholders of 120 million CNY for the first three quarters of 2024, reflecting a year-over-year decline of 5.1% and 28.1% respectively. In Q3 2024, the revenue was 900 million CNY, with a net profit of 50 million CNY, showing a year-over-year decrease of 13.9% and 44.2% respectively [1][2]. - Despite ongoing retail pressures, the company has seen growth in its bulk and overseas business segments. The company is actively pursuing channel transformation and technological innovation, leading to significant growth in home decoration, package delivery, and overseas operations [2]. - The company’s gross margin for Q3 2024 was 28.3%, an increase of 1.5 percentage points year-over-year, attributed to reduced dilution effects from shrinking revenue scales. However, the net profit margin for Q3 2024 was 5.6%, down 3.0 percentage points year-over-year [2]. Financial Summary - For the first three quarters of 2024, the company achieved revenues of 2.42 billion CNY, with a net profit of 120 million CNY and a net profit excluding non-recurring items of 80 million CNY. The Q3 2024 figures were 900 million CNY in revenue, 50 million CNY in net profit, and 40 million CNY in net profit excluding non-recurring items [1]. - The company’s revenue from various channels in the first three quarters included 1.15 billion CNY from distributors, 10 million CNY from direct sales, 910 million CNY from bulk sales, and 250 million CNY from overseas, with year-over-year changes of -13.6%, -84.7%, +4.4%, and +26.6% respectively [2]. - The company’s operating cash flow was negative 20 million CNY in Q3 2024, a decrease of 40 million CNY year-over-year. As of the end of Q3, inventory turnover days were 80 days, accounts receivable turnover days were 22 days, and accounts payable turnover days were 100 days, indicating gradual improvement in operational efficiency [2]. Earnings Forecast - The report projects net profits for the company to be 235 million CNY, 265 million CNY, and 283 million CNY for the years 2024, 2025, and 2026 respectively, with corresponding price-to-earnings ratios of 14, 12, and 11 times [2][3].