M&G(SH:603899) Guoxin Securities·2025-11-03 11:31Investment Rating - The investment rating for the company is "Outperform the Market" [7][5][21] Core Insights - The company reported a revenue of 17.33 billion yuan for the first three quarters of 2025, reflecting a year-on-year growth of 1.2%. The net profit attributable to shareholders was 0.95 billion yuan, down 7.2% year-on-year, indicating a potential turning point in performance as Q3 showed a revenue increase of 7.5% year-on-year [1][5] - The traditional business segment's revenue decline is narrowing, with a year-on-year decrease of 5.8% for Q1-Q3 2025, while Q3 saw a reduced decline of 3.6%. The online segment, however, experienced a slight slowdown in growth [2][5] - The office direct sales segment achieved a revenue of 3.56 billion yuan in Q3, marking a 17.3% increase year-on-year, driven by the recovery of large state-owned enterprise tenders. Retail store performance remained stable, with revenue from the Morning Light Living Hall reaching 0.41 billion yuan, up 6.6% year-on-year [3][5] - The gross margin slightly decreased to 19.9%, with traditional business margins improving. The company effectively controlled expenses, resulting in a net profit margin of 6.0% for Q3 [4][5] Financial Forecasts - The company has adjusted its profit forecasts for 2025-2027, now expecting net profits of 1.41 billion, 1.56 billion, and 1.74 billion yuan respectively, with a year-on-year growth of 1%, 11%, and 12% [5][6] - The projected earnings per share (EPS) for 2025-2027 are 1.53, 1.69, and 1.89 yuan, with corresponding price-to-earnings (PE) ratios of 18.3, 16.6, and 14.8 [6][5]