周大生2024年三季报点评：加盟出货阶段承压，品牌升级持续推进

Investment Rating - The report maintains a "Buy" rating for the company [6][8]. Core Views - The company reported a significant decline in revenue and net profit for the third quarter of 2024, with revenue down 40.9% year-on-year and net profit down 28.7% [4]. - The decline in revenue is primarily attributed to pressure on franchise business sales, with a notable drop in the willingness of franchisees to replenish inventory amid rising gold prices [4]. - Despite the challenges, the company is actively responding by enhancing its product matrix and growing its e-commerce channels, which have shown positive performance [6]. Summary by Sections Financial Performance - For the first three quarters of 2024, the company achieved revenue of 10.81 billion yuan, a year-on-year decrease of 13.5%, and a net profit of 850 million yuan, down 21.9% [4]. - In Q3 alone, revenue was 2.61 billion yuan, reflecting a 40.9% decline year-on-year, while net profit was 250 million yuan, down 28.7% [4]. - The company’s gross margin improved significantly, reaching 27.5% in Q3, up 9.7 percentage points year-on-year, due to rising gold prices and adjustments in product mix [5]. Business Segments - Revenue from franchise, self-operated, and e-commerce businesses saw year-on-year changes of -52%, -4%, and +14%, respectively, indicating a strong performance in e-commerce despite overall revenue decline [4]. - The company’s total store count reached 5,235, with a net increase of 5 stores in Q3, including 6 new self-operated stores and a net closure of 1 franchise store [4]. Strategic Initiatives - The company continues to implement its brand upgrade strategy, with increased investment in advertising and market promotion, leading to a 34% increase in sales expenses [5]. - The strategic focus on e-commerce has yielded positive results, with high-margin product categories like silver jewelry showing significant growth [5]. Future Outlook - The company is positioned for long-term growth, with projected EPS of 1.02, 1.14, and 1.27 yuan for 2024, 2025, and 2026, respectively [6].