CHJ(002345) 长江证券·2024-11-18 07:24Investment Rating - The investment rating for the company is "Buy" and is maintained [8]. Core Insights - The company reported a revenue of 4.86 billion yuan for the first three quarters of 2024, representing a year-on-year increase of 8.0%. The net profit attributable to the parent company was 320 million yuan, up 1.0% year-on-year. However, in the third quarter alone, revenue decreased by 4.4% year-on-year to 1.43 billion yuan, with net profit down 17.2% to 90 million yuan [4][5]. Summary by Sections Financial Performance - For the first three quarters of 2024, the company achieved a revenue of 4.86 billion yuan, with a year-on-year growth of 8.0%. The net profit attributable to the parent company was 320 million yuan, reflecting a 1.0% increase year-on-year. In Q3, revenue fell to 1.43 billion yuan, a decline of 4.4% year-on-year, and net profit decreased to 90 million yuan, down 17.2% year-on-year [4][5]. Store Expansion and Market Dynamics - The company continued to expand its franchise stores, adding 43 new "CHJ Chaohongji" jewelry stores, bringing the total to 1,482. The number of franchise stores increased by 50 compared to the previous quarter, while direct stores saw a net decrease of 7. The decline in revenue in Q3 was attributed to weak demand in the industry and rising gold prices, which affected the willingness of franchisees to purchase inventory [4][5]. Profitability and Cost Management - The gross margin for Q3 was 24.2%, down 2.3 percentage points year-on-year but up 0.9 percentage points quarter-on-quarter. The company managed to limit the decline in net profit through continuous cost optimization, with total expenses for sales, management, R&D, and financial costs amounting to 230 million yuan, an 8% year-on-year reduction [5][6]. Brand Strategy and Market Positioning - The company maintained its differentiated brand positioning focused on youth and fashion, launching several new product lines in collaboration with renowned artists and designers. The brand's visibility was enhanced through participation in cultural events, and it received recognition in the 2024 Asia Brand 500 rankings, further strengthening its competitive edge [6]. Future Outlook - The company is expected to continue its focus on product innovation and brand development, with projected earnings per share (EPS) of 0.40 yuan, 0.48 yuan, and 0.55 yuan for 2024, 2025, and 2026, respectively. The ongoing expansion of franchise stores and the resilience in revenue and profit margins amid industry challenges suggest a positive long-term outlook [6].