Beijing Caishikou Department Store (SH:605599) Changjiang Securities·2024-11-18 02:33Investment Rating - The investment rating for the company is "Buy" and is maintained [8]. Core Views - The company reported a revenue of 15.35 billion yuan for the first three quarters of 2024, representing a year-on-year growth of 24.1%. However, the net profit attributable to the parent company was 550 million yuan, down 6.3% year-on-year. In the third quarter alone, revenue was 4.36 billion yuan, with an 8.7% year-on-year increase, while net profit fell 14.0% year-on-year [4][6]. Summary by Sections Revenue and Profitability - For the first three quarters of 2024, the company achieved a revenue of 15.35 billion yuan, a 24.1% increase year-on-year, and a net profit of 550 million yuan, down 6.3% year-on-year. In Q3, revenue was 4.36 billion yuan, up 8.7% year-on-year, with a net profit of 150 million yuan, down 14.0% year-on-year [4][6]. Store Expansion and E-commerce Growth - The company is steadily expanding its store network, adding 7 new fully-owned stores in Q3, bringing the total to 100. The regions of Beijing, Shaanxi, and Hubei saw new openings. The e-commerce segment is expected to continue its rapid growth, contributing to the revenue increase in Q3 [4][6]. Regional Performance - In Q3, revenue from North China declined by 7.6%, while other regions such as East China, Central China, Northeast, Southwest, and South China saw significant growth rates of 166%, 147%, 1490%, 109%, and 59% respectively. This growth is attributed to the high proportion of investment gold in the e-commerce business [4][6]. Gross Margin and Cost Management - The overall gross margin for Q3 was 8.7%, down 1.8 percentage points year-on-year but up 0.9 percentage points quarter-on-quarter. The gross profit amount decreased by 9.9% year-on-year. The company maintained efficient cost management, with total sales, management, and financial expenses increasing by only 9.1% year-on-year despite the increase in store count [5][6]. Long-term Strategy and Market Position - The company is recognized as a leading brand in the gold and jewelry sector in the Beijing-Tianjin-Hebei region. It has a strong brand reputation and consumer trust. The company is pursuing a multi-channel strategy, focusing on both online and offline sales, and aims to enhance its market share and brand influence in the coming years. EPS is projected to reach 0.88, 1.02, and 1.13 yuan for 2024, 2025, and 2026 respectively [6][8].