The company publishes three quarterly reports for 2023. In the first three quarters of 23 years, the company achieved revenue of 1.742 billion yuan,-42.75% compared with the same period last year; revenue in the third quarter alone reached 500 million yuan,-47.77% compared with the same period last year, mainly due to the structural differentiation of the jewelry industry, intensified market competition and insufficient consumer demand for diamond inlaid ornaments. From the perspective of sub-business model, the revenue of online self-operation / offline direct operation / offline joint venture / other businesses is 1.75 billion yuan respectively.
Expense side: the expense rate during the first three quarters of the company is 64.15%, year-on-year + 23.94pct. The sales expense rate is 55.56%, year-on-year + 20.14pct; management expense rate is 6.40%, year-on-year + 2.40pct; R & D expense rate is 1.15%, year-on-year + 0.76pct, mainly due to the current phase of the company to strengthen product design innovation and information construction, continue to increase R & D investment; financial expense rate is 1.04%, year-on-year + 0.64pct, mainly due to the increase in current bill discount interest expense and the decrease of current interest income.
Gross margin end: the company's gross profit margin in the first three quarters of 23 years was 68.97%, year-on-year-1.77pct; in the third quarter, the company's gross profit margin was 68.16%, year-on-year-2.82pct.
Net profit: the company realized 74 million yuan in net profit in the first three quarters of 23 years,-90.40% in the same period last year, and 21 million yuan in the third quarter alone,-89.31% in the same period last year.
Continue to adjust and optimize the channel, with an impairment of 76.57 million yuan in the first three quarters. By the end of September 23, the number of the company's stores was 594, all of which were self-owned. In the first three quarters, a total of 19 new stores were opened (8 in the first quarter, 7 in the second quarter and 4 in the third quarter), and 113 stores were closed (9 in the first quarter, 18 in the second quarter and 86 in the third quarter). A net decrease of 94 stores. In the first three quarters of 23, the total loss of credit impairment was 8.1 million yuan, the impairment loss of assets was 68.47 million yuan, and the provision for impairment this time totaled 76.57 million yuan, affecting the net profit of 58.24 million yuan.
Investment suggestion: the company's fully self-owned + diamond inlaid jewelry-based business model has encountered greater pressure and challenges under the current development of the jewelry industry, but the company actively adjusts the channel strategy, focuses on improving the quality of stores, and the brand concept is deeply rooted in the hearts of the people. As the company is still in the adjustment stage, we adjust the company's profit forecast and estimate that the 23-25 year return net profit of the company will be 1.5 × 3.5 × 4.3 million respectively (the original value is 3.3 pm 5.1 / 630 million), corresponding to 84x/36x/29xPE respectively.
Risk hints: risks such as channel adjustment risk, individual store income pressure, outsourcing production, economic and market environment fluctuations, etc.