Joyoung(002242) 长江证券·2024-11-11 05:54Investment Rating - The report maintains a "Buy" rating for Joyoung (002242 SZ) [4] Core Views - Joyoung's revenue and net profit declined significantly in Q3 2024, with revenue down 27 12% YoY and net profit turning negative at -0 77 billion yuan, a 166 46% YoY decrease [4] - The kitchen appliance sector faced pressure in Q3 2024, with overall retail sales down 4 6% YoY and average prices down 4 8% YoY [4] - Joyoung's gross margin slightly decreased by 0 58pct YoY in Q3 2024, while sales expenses increased significantly by 8 07pct YoY, leading to a net profit margin of -4 31% [5] - The company is actively developing new products and expanding into new channels, including e-commerce platforms like Xiaohongshu and Douyin, to drive sales growth [6] Financial Performance - In the first three quarters of 2024, Joyoung achieved revenue of 6 18 billion yuan, down 8 84% YoY, and net profit of 98 million yuan, down 73 02% YoY [4] - For Q3 2024 alone, revenue was 1 795 billion yuan, down 27 12% YoY, with a net loss of 77 million yuan [4] - The company's gross margin in Q3 2024 was 21 85%, down 0 58pct YoY [5] - Sales expenses in Q3 2024 accounted for 19 12% of revenue, up 8 07pct YoY [5] Product and Channel Strategy - Joyoung launched new products in 2024, including the 0-coating non-stick rice cooker 40N9U Pro and the Space Heat Small Clean R5Pro, as part of its Space Technology 3 0 series [6] - The company is focusing on expanding into new channels, including content e-commerce platforms like Xiaohongshu and Douyin, and integrating online and offline retail strategies [6] - Joyoung is improving operational efficiency through platform-based production, flexible delivery, and better coordination between production and sales [6] Industry Overview - The kitchen appliance market saw a 4 6% YoY decline in retail sales in the first three quarters of 2024, with retail volume up 0 2% and average prices down 4 8% [4] - In Q3 2024, the sector experienced declines in sales value (-2 65% YoY), sales volume (-0 25% YoY), and average prices (-2 4% YoY) [4] Financial Forecasts - The report forecasts Joyoung's net profit for 2024-2026 to be 142 million yuan, 213 million yuan, and 273 million yuan, respectively [6] - Revenue is expected to be 8 847 billion yuan in 2024, 9 456 billion yuan in 2025, and 10 282 billion yuan in 2026 [10] - Gross margin is projected to remain around 25% from 2024 to 2026 [10]