SYG(300740) Changjiang Securities·2024-11-18 07:24Investment Rating - The investment rating for the company is "Buy" and is maintained [5]. Core Views - The company is currently undergoing a business adjustment period, leading to fluctuations in profits. However, it continues to pursue a high-end brand strategy [9]. - In Q3 2024, the company achieved revenue of 750 million yuan, a year-on-year decline of 30.9%. The net profit attributable to the parent company was a loss of 11.44 million yuan, with a non-recurring net profit loss of 11.64 million yuan [4][8]. - The company has announced the acquisition of the high-end American brand RéVive, which is expected to contribute positively to future performance as it expands in the Chinese market [9]. Summary by Sections Financial Performance - For the first three quarters of 2024, the company reported total revenue of 3.04 billion yuan, a year-on-year decrease of 9.8%. The revenue for Q3 alone saw a significant drop of 30.9% compared to the same quarter last year [8]. - The gross margin in Q3 improved by 7.7 percentage points year-on-year, attributed to the ongoing optimization of brand structure and an increased proportion of high-end brands [9]. - The sales expense ratio increased by 8.2 percentage points year-on-year, likely due to the preemptive marketing efforts for the Double Eleven shopping festival [9]. Strategic Initiatives - The company is actively seeking external mergers and acquisitions to enhance its performance, with the recent acquisition of RéVive being a key strategic move [9]. - The high-end brand EDB has shown steady growth, successfully establishing itself as a core product line, while the newly acquired RéVive is in its early stages and expected to drive future growth [9]. Earnings Forecast - The projected earnings per share (EPS) for 2024, 2025, and 2026 are estimated to be 0.52 yuan, 0.76 yuan, and 0.93 yuan respectively, indicating a positive outlook for the company's financial performance in the coming years [9].