OPPEIN(603833) 广发证券·2024-11-24 07:33Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 70.38 CNY per share based on a 15x PE valuation for 2025 [6][3]. Core Views - The company's profitability has improved, with Q1-3 2024 revenue at 13.88 billion CNY, down 16.2% year-on-year, and net profit at 2.03 billion CNY, down 12.1% year-on-year. The third quarter saw revenue of 5.30 billion CNY, down 21.2% year-on-year, and net profit of 1.04 billion CNY, down 11.6% year-on-year [2][3]. - Revenue pressure continues, but the company anticipates positive effects from the "old-for-new" program starting in Q4. Revenue from cabinets, wardrobes, sanitary ware, and wooden doors in Q1-3 2024 was 4.03 billion CNY, 7.19 billion CNY, 0.80 billion CNY, and 0.83 billion CNY respectively, showing declines of 22.0%, 19.0%, 1.6%, and 17.1% year-on-year [3][2]. - Gross margin has improved, with Q1-3 2024 gross margin at 35.5%, up 1.6 percentage points year-on-year, and net margin at 14.6%, up 0.8 percentage points year-on-year. In Q3 2024, gross margin reached 40.4%, up 2.7 percentage points year-on-year, and net margin was 19.7%, up 2.2 percentage points year-on-year [3][2]. Financial Summary - The company is projected to achieve net profits of 2.70 billion CNY, 2.85 billion CNY, and 2.99 billion CNY for 2024, 2025, and 2026 respectively, with corresponding valuations of 15x, 14x, and 13x [3][5]. - The company's revenue for 2024 is estimated at 19.78 billion CNY, reflecting a decline of 13.2% year-on-year, with a projected recovery in subsequent years [5][3]. - The report highlights a decrease in the number of stores, with a net reduction of 536 stores to 8,180 by the end of Q3 2024, indicating ongoing operational pressures [3][2].