ATRenew(US:RERE) Guohai Securities·2025-11-24 11:09Investment Rating - The report maintains a "Buy" rating for the company [1] Core Insights - The company achieved Q3 revenue of 5.149 billion RMB, a year-on-year increase of 27.1%, reaching the high end of previous guidance [6] - Non-GAAP operating profit for Q3 was 140 million RMB, up 34.9% year-on-year, while Non-GAAP net profit was 110 million RMB, reflecting a 22.3% increase [6] - The company expects Q4 total revenue to be between 6.08 billion and 6.18 billion RMB, representing a year-on-year growth of 25.4% to 27.4% [6] Revenue Performance - Q3 revenue breakdown shows 1P product revenue at 4.726 billion RMB, up 28.7% year-on-year, driven by increased sales of second-hand consumer electronics [8] - 3P service revenue reached 423 million RMB, a year-on-year increase of 11.6%, primarily from multi-category recycling services [8] - The number of traded devices in Q3 was 10.9 million, compared to 9.1 million in the same period last year [8] Business Structure and Profitability - The company's gross margin for Q3 was 20.5%, an increase of 0.5 percentage points year-on-year, with 1P business gross margin at 13.4%, up 1.7 percentage points [8] - Operating expenses showed improvement, with fulfillment expenses at 437 million RMB and a fulfillment expense ratio of 8.5%, down 0.1 percentage points year-on-year [8] - GAAP operating profit was 121 million RMB, a significant increase of 385.1% year-on-year, with a GAAP operating margin of 2.3% [8] Future Projections - Revenue forecasts for 2025-2027 are 20.96 billion, 26.35 billion, and 32.38 billion RMB, with growth rates of 28%, 26%, and 23% respectively [10] - Non-GAAP net profit projections for the same period are 473 million, 664 million, and 900 million RMB, with growth rates of 51%, 40%, and 35% respectively [10] - The report highlights the company's potential for growth through expanded channels for second-hand goods and multi-category business expansion [10]