HWHG(SH:600079) GUOTAI HAITONG SECURITIES·2025-10-31 08:19Investment Rating - The report has downgraded the investment rating to "Cautious Accumulate" [2][6]. Core Views - The overall performance of the company shows steady growth, with an increase in gross margin in the third quarter. The revenue for the first three quarters of 2025 reached 17.883 billion yuan, a decrease of 6.58%, while the net profit attributable to the parent company was 1.689 billion yuan, an increase of 6.22% [2][11]. - The target price is set at 22.21 yuan, based on a PE ratio of 17X for 2025, considering the stable growth of the company's main business and comparable company valuations [11][12]. Financial Summary - Total revenue for 2023 is projected at 24.525 billion yuan, with a growth rate of 9.8%. For 2024, it is expected to be 25.435 billion yuan, a growth of 3.7%, followed by a slight decline to 24.920 billion yuan in 2025, representing a decrease of 2.0% [5][12]. - The net profit attributable to the parent company is forecasted to be 2.134 billion yuan in 2023, dropping to 1.330 billion yuan in 2024, but rebounding to 2.133 billion yuan in 2025, reflecting a significant growth of 60.4% [5][12]. - The gross margin for the third quarter was reported at 47.46%, an increase of 0.75 percentage points compared to the previous period [11]. Market Data - The company's market capitalization is 34.473 billion yuan, with a total share capital of 1.632 billion shares [7]. - The stock price has fluctuated between 19.52 yuan and 25.26 yuan over the past 52 weeks [7]. Valuation Metrics - The current price-to-earnings (P/E) ratio is 16.15, with projections of 25.92 for 2024 and 16.17 for 2025 [5][12]. - The price-to-book (P/B) ratio is currently at 2.02, expected to decrease to 1.82 by 2025 [12].