OPPEIN(603833) 华创证券·2024-11-14 07:48Investment Rating - The report maintains a "Strong Buy" rating for the company with a target price of 89 CNY per share, compared to the current price of 72.02 CNY [1]. Core Insights - The company reported a revenue of 138.8 billion CNY and a net profit attributable to shareholders of 20.3 billion CNY for the first three quarters of 2024, reflecting a year-over-year decline of 16.2% and 12.1% respectively. In Q3 alone, the revenue was 53.0 billion CNY, with a net profit of 10.4 billion CNY, showing a year-over-year decline of 21.2% and 11.6% respectively [1]. - Despite the challenging market conditions, the company continues to optimize its store structure and maintain profitability. The gross margin improved to 40.4% in Q3, up 2.7 percentage points year-over-year, attributed to cost reduction and an increase in the proportion of high-margin customized products [1]. - The company is focusing on channel transformation and cost efficiency, with expectations that the home replacement policy will boost end-demand. Projected net profits for 2024-2026 are 26.69 billion CNY, 28.52 billion CNY, and 30.82 billion CNY respectively [1]. Financial Summary - For 2023, the total revenue is projected at 22,782 million CNY, with a year-over-year growth of 1.3%. However, for 2024, a decline of 14.1% is expected, with revenues of 19,580 million CNY. The net profit for 2023 is estimated at 3,036 million CNY, with a projected decline of 12.1% to 2,669 million CNY in 2024 [2]. - The earnings per share (EPS) for 2023 is 4.98 CNY, expected to decrease to 4.38 CNY in 2024, with a price-to-earnings (P/E) ratio of 16 for 2024 [2][4].