BROS(601339) GF SECURITIES·2024-11-20 10:58Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 5.96 CNY per share, corresponding to a PE ratio of 16 times for 2024 [4][3]. Core Insights - The company reported a significant increase in its non-recurring net profit for Q3 2024, with a year-on-year growth of 138.59%, despite a decline in net profit attributable to shareholders by 25.37% for the first three quarters of 2024 [2][3]. - The gross profit margin improved to 14.04% in Q3 2024, an increase of 10.47 percentage points year-on-year, indicating healthy operational quality [3]. - The company is expected to continue its strong performance in Q4 2024, driven by a recovery in downstream demand and planned capacity expansion in Vietnam [3]. Financial Performance Summary - For the first three quarters of 2024, the company achieved a revenue of 6.074 billion CNY, a year-on-year increase of 19.29%, while the net profit attributable to shareholders was 413 million CNY, down 25.37% [2]. - The company’s gross profit margin for the first three quarters was 11.39%, up 0.64 percentage points year-on-year, and the expense ratio decreased to 7.80%, down 1.35 percentage points [3]. - The operating cash flow for the first three quarters was 1.244 billion CNY, reflecting a year-on-year growth of 98.78% [3]. Earnings Forecast - The projected earnings per share (EPS) for 2024, 2025, and 2026 are 0.37 CNY, 0.63 CNY, and 0.69 CNY respectively, indicating a positive growth trajectory [3][8].