Toly Bread(SH:603866) Zhongyuan Securities·2024-12-19 11:20Investment Rating - The report downgrades the investment rating of the company to "Cautious Accumulate" [16][28]. Core Views - The company experienced a revenue decline, with Q3 2024 revenue at 1.627 billion yuan, a year-on-year decrease of 12.53%, and a year-to-date revenue of 4.647 billion yuan, down 8.27% year-on-year [16]. - Despite the revenue drop, the company's gross profit margin increased by 0.51 percentage points to 23.81% due to a greater decline in costs compared to revenue [16]. - The reduction in sales and R&D expenses led to an increase in net profit margin to 9.36%, up 0.29 percentage points [16]. Financial Data Summary - The company’s market capitalization is 11.23 billion yuan [6]. - The price-to-book ratio is 2.23 [5]. - The earnings per share (EPS) for 2024, 2025, and 2026 are projected to be 0.37 yuan, 0.40 yuan, and 0.42 yuan respectively [16][21]. - The projected price-to-earnings (P/E) ratios corresponding to the current stock price of 7.02 yuan are 18.74, 17.54, and 16.57 for the years 2024, 2025, and 2026 respectively [16][21]. - The company’s net asset return (ROE) is 8.62% [11].