LFX(600612) 长江证券·2024-11-15 01:47Investment Rating - The investment rating for the company is "Buy" and is maintained [5][7]. Core Views - The company reported a revenue of 52.58 billion yuan for the first three quarters of 2024, a year-on-year decline of 15.3%, with a net profit attributable to shareholders of 1.78 billion yuan, down 9.6% year-on-year. In the third quarter alone, revenue was 12.62 billion yuan, a significant drop of 41.9%, and net profit was 370 million yuan, down 46.2% year-on-year [3][4]. - The decline in revenue in the third quarter is primarily attributed to weak industry demand, which affected the shipment volume during the ordering meeting. The consumption of gold jewelry and gold bars in the industry decreased by 29% and 9% year-on-year, respectively, indicating a challenging market environment [3][4]. - Despite the short-term challenges, the company maintains a strong market position with 6,022 stores as of the first half of 2024 and a robust brand presence. The company is expected to see significant improvement in performance once end-user demand recovers [5]. Summary by Sections Financial Performance - For the first three quarters of 2024, the company achieved a revenue of 52.58 billion yuan, down 15.3% year-on-year, and a net profit of 1.78 billion yuan, down 9.6% year-on-year. The third quarter alone saw a revenue of 12.62 billion yuan, a decline of 41.9%, and a net profit of 370 million yuan, down 46.2% year-on-year [3][4]. - The gross profit margin for the third quarter was 6.5%, a decrease of 1.0 percentage points year-on-year, primarily due to adjustments in sales strategies to cope with weak industry demand and a smaller increase in gold prices compared to the previous quarter [4]. Market Position and Strategy - The company is positioned as a leading player in the gold jewelry industry, with a multi-faceted marketing strategy that includes self-operated stores, joint ventures, and exclusive distributors. This diversified approach is expected to enhance operational stability and market resilience [5]. - The company is projected to achieve earnings per share (EPS) of 3.84, 4.20, and 4.64 yuan for the years 2024 to 2026, indicating potential for recovery and growth in the medium to long term [5].