Zhejiang Natural Outdoor Goods (605080) Tai Ping Yang·2024-12-09 04:15Investment Rating - The report maintains a "Buy" rating for the company Zhejiang Natural (605080) with a target price based on recent performance [1]. Core Insights - The company reported a revenue of 190 million yuan for Q3 2024, representing a year-on-year increase of 34.9%, and a net profit attributable to shareholders of 62 million yuan, which is a significant increase of 372% year-on-year [1]. - The core business is recovering steadily, with overseas subsidiaries contributing to growth through increased production capacity [1]. - The company is expanding into new product categories such as insulation boxes and water sports products, which are showing strong growth and contributing to revenue [1]. - The collaboration with well-known domestic automotive companies to develop products for the "car camping" lifestyle is expected to enhance market penetration [1]. Financial Performance Summary - For Q3 2024, the gross profit margin decreased by 0.93 percentage points to 29.3%, while the net profit margin increased by 23 percentage points to 32.6% [1]. - The operating cash flow increased by 11.8% year-on-year to 66 million yuan, indicating a positive trend in cash generation [1]. - The company expects to see continued revenue growth in Q4 2023, driven by the end of inventory destocking by brand clients and a gradual recovery in orders [1]. Future Projections - The company forecasts net profits of 181 million yuan, 230 million yuan, and 276 million yuan for the years 2024, 2025, and 2026, respectively, with corresponding price-to-earnings ratios of 16, 13, and 11 [1][4].