BIEM(SZ:002832) Changjiang Securities·2024-11-12 03:00Investment Rating - The investment rating for the company is "Buy" and is maintained [3][4]. Core Views - The company's Q3 2024 performance showed revenue, net profit attributable to the parent, and net profit excluding non-recurring items of 1.06 billion, 280 million, and 280 million yuan respectively, reflecting year-on-year changes of -4.4%, -17.3%, and -20.0%, which were below expectations [3]. - The company is positioned in the high-end sports fashion market and is implementing a multi-brand strategy to enhance its brand portfolio, with expectations of revenue growth in the coming years [4]. Summary by Sections Financial Performance - In Q3 2024, the company reported revenues of 1.06 billion yuan, with a year-on-year decline of 4.4%. For the first three quarters, total revenue reached 3 billion yuan, an increase of 7.3% year-on-year [3]. - The gross profit margin decreased by 2.0 percentage points year-on-year, attributed to a higher proportion of cost-effective products, which reduced the markup [3]. - Operating cash flow for Q3 was 120 million yuan, a decrease of 240 million yuan year-on-year, primarily due to increases in accounts receivable and inventory [3]. Strategic Initiatives - The company is focusing on expanding its product categories and optimizing channel quality to drive growth. It has launched a "T-shirt expert" strategy and established a golf division to capture the high-end market [4]. - The company plans to continue investing in new brand marketing, which is expected to impact expenses in the near term but aims to strengthen its brand portfolio over time [3][4]. Future Projections - The company is projected to achieve net profits attributable to the parent of 910 million, 1.06 billion, and 1.19 billion yuan for 2024, 2025, and 2026 respectively, with year-on-year growth rates of 0%, 16%, and 13% [4]. - The current price corresponds to a price-to-earnings ratio of 13, 11, and 10 times for the years 2024, 2025, and 2026 [4].