Bestore(603719) Changjiang Securities·2024-11-12 14:53Investment Rating - The investment rating for the company is "Buy" and is maintained [8]. Core Views - The company's total revenue for Q1-Q3 2024 was 5.48 billion, a year-on-year decline of 8.66%, while the net profit attributable to the parent company was 19.39 million, down 89.86% year-on-year [4][5]. - In Q3 2024, the company's total revenue was 1.594 billion, a year-on-year decline of 20.81%, with a net profit of -4.50 million, a decrease of 325.2% year-on-year [4][5]. - The company experienced a slowdown in the pace of store closures, with a net closure of 120 stores in Q3, compared to the previous quarter [4][5]. - The company's online sales in Q3 were 653 million, down 23.4% year-on-year, while offline sales were 1.13 billion, down 18.86% year-on-year [4][5]. - The company expects to gradually restore the quality and speed of store openings as adjustments are made [6]. Financial Performance Summary - The gross profit margin for Q1-Q3 2024 decreased by 1.7 percentage points to 26.84%, while the net profit margin decreased by 2.83 percentage points to 0.35% [5]. - In Q3 2024, the gross profit margin increased by 0.22 percentage points to 27.95%, but the net profit margin was -0.28% [5]. - The company anticipates that the impact of price adjustments will gradually weaken in Q4, leading to a potential recovery in offline revenue [6]. - The projected EPS for 2024 and 2025 is 0.07 and 0.25 respectively, corresponding to PE ratios of 169 and 48 times [6].