China International Capital Corporation pointed out in a recent research report that Three Squirrels Inc. (300783.SZ) forecasted a net income of approximately 4.8-5.2 billion yuan in 3Q24, a year-on-year increase of +200.45% to +224.81%, exceeding market expectations. The main reason is expected to be the improvement in profit margins due to the company's operational efficiency. In the third quarter of this year, the company reorganized offline distribution channels and made sufficient preparations for the Mid-Autumn Festival and National Day activities. According to China International Capital Corporation's data on supermarket channels, Three Squirrels Inc.'s total GMV in the supermarket channels in July and August increased by 48% (average price down 11% year-on-year), significantly outperforming the industry as a whole; overall double-digit growth is expected in online channels, with faster growth in the Douyin channel. Considering the strong demand for cost-effective products at the end terminal in 2024, we expect a high certainty in achieving the incentive target in 2024 (the revenue target is 10 billion yuan, with a profit of 0.4 billion yuan, excluding incentive costs). Taking into account the recent sector valuation increase, the target price is raised by 20% to 27 yuan, maintaining an "outperforming the industry" rating.