Xiangyu(600057) 长江证券·2024-11-11 08:03Investment Rating - The investment rating for Xiamen Xiangyu (600057.SH) is "Buy" and is maintained [3][4]. Core Views - The report highlights that the company's operating performance remains resilient despite a significant decline in revenue and net profit due to macroeconomic challenges and bad debt provisions related to the DeLong Group [3][4]. - The company reported a revenue of 942.2 billion yuan for Q3 2024, a year-on-year decrease of 30.3%, and a net profit attributable to shareholders of 1.1 billion yuan, down 61.8% year-on-year [3][4]. - Excluding the impact of bad debt provisions, the company's net profit would have only slightly decreased, indicating stable core operations [3][4]. Summary by Sections Financial Performance - For the first three quarters of 2024, the company achieved a total revenue of 297.7 billion yuan, a decline of 19.2% year-on-year, and a net profit of 0.89 billion yuan, down 24.7% year-on-year [3][4]. - In Q3 2024, the company faced a credit impairment loss of 2.4 billion yuan, primarily due to provisions for debts related to the DeLong Group, which reduced the net profit attributable to shareholders by 1.58 billion yuan [3][4]. Market Conditions - The report notes that downstream manufacturing clients are experiencing weak purchasing demand, with the Producer Price Index (PPI) continuing to show negative year-on-year changes [4]. - Commodity prices are under pressure, with the South China Metal Index, Energy Chemical Index, and Agricultural Products Index showing average year-on-year declines of 1.7%, 1.9%, and 9.4%, respectively [4]. Strategic Adjustments - The company is actively adjusting its agricultural product supply chain strategy, focusing on flow operations and rolling storage, although this has led to a decrease in operating cash flow [4]. - The report anticipates that as fiscal policies gradually take effect, the company's operational performance is expected to stabilize and recover [4]. Future Projections - The company is projected to achieve net profits of 1.03 billion yuan, 2.14 billion yuan, and 2.52 billion yuan for the years 2024, 2025, and 2026, respectively, with corresponding price-to-earnings ratios of 13.2, 6.3, and 5.4 times [4].