King's Luck(603369) 中原证券·2024-12-09 08:42Investment Rating - The investment rating for the company is "Cautious Accumulate" [2][13]. Core Views - The report highlights a slowdown in revenue growth, with the company achieving revenue of 2.636 billion yuan in Q3 2024, representing a year-on-year increase of 10.12%, but the growth rate has narrowed by 17.92 and 11.4 percentage points compared to previous periods [2]. - The total revenue for the first three quarters of 2024 reached 9.941 billion yuan, a year-on-year increase of 18.86%, but this growth is 9.49 percentage points lower than the same period last year [2]. - The report indicates a rise in operating costs, with a year-on-year increase of 28.85% in operating costs for the first three quarters, which is higher than the revenue growth, leading to a decline in gross margin by 1.99 percentage points to 74.27%, marking the first decline since 2020 [2]. - The report suggests a reduction in sales expenses, with a year-on-year increase of 3.36% in sales expenses, which is lower than the revenue growth, resulting in a decrease in the sales expense ratio by 2.3 percentage points to 15.35% [2]. Financial Summary - The company is projected to achieve earnings per share (EPS) of 2.80 yuan, 3.16 yuan, and 3.54 yuan for the years 2024, 2025, and 2026, respectively, with corresponding price-to-earnings (P/E) ratios of 16.97, 15.06, and 13.44 based on the closing price of 47.56 yuan on December 5, 2024 [2][5]. - Revenue forecasts for the upcoming years are as follows: 11.916 billion yuan in 2024, 13.703 billion yuan in 2025, and 15.484 billion yuan in 2026, with growth rates of 17.97%, 15.00%, and 13.00%, respectively [5][7]. - Net profit projections are 3.516 billion yuan for 2024, 3.962 billion yuan for 2025, and 4.440 billion yuan for 2026, with growth rates of 12.10%, 12.70%, and 12.06% [5][7].