The company released the 2024Q3 quarterly report

The company's 24Q3 revenue was 0.9 billion, a decrease of 8%; net profit to mother of 0.064 billion was reduced by 23%, and net profit after deducting 0.053 billion to mother decreased by 33%;

24Q1-3's revenue of 2.7 billion was reduced by 3%, net profit due to mother was reduced by 17% by 0.2 billion, and reduced by 14% after deducting 0.18 billion to mother.

24Q1-3's gross profit margin of 41.4% increased by 1.3 pcts; net profit margin of 7.8% decreased by about 1.3 pcts.

Omni-channel system deepens reach

The company optimizes channel structure, improves channel efficiency, enhances channel influence, creates channel advantages, and has an omnichannel system covering online and offline. Reach out to a wide range of markets through diverse channels, better meet different market needs, and increase market penetration.

Among them, online e-commerce channels and offline distribution channels are the company's main advantage channels, and the two maintain balanced development. At the same time, the company is also increasing its presence in the core business district through the construction of offline self-operated channels.

The company continues to enhance the breadth and depth of channel coverage, management coordination capabilities, innovative and flexible response, supply chain integration efficiency, customer experience and service support, data analysis and data informatization.

Online channels, the company was the earliest home textile company in the industry to focus on e-commerce business and quickly accumulated a first-mover advantage. After years of efficient operation, it has established competitive barriers in key factors such as digital marketing, technology drive and platform capabilities, optimized user experience, supply chain and logistics, and application of emerging technologies and new business models. On the one hand, it has maintained the large-scale operating advantages of e-commerce platforms such as Tmall, JD, and Vipshop. On the other hand, it has entered e-commerce platforms with high potential such as Douyin, Kuaishou, and Pinduoduo, etc., to form a full range of e-commerce platforms with high potential, from shelf e-commerce to content e-commerce. It has deepened the reach of channels.

Through offline channels, the company relies on a complete dealer system to have long-term and deep penetration of terminal stores in high-tier cities and most low-tier cities to complete multi-level consumer coverage.

Adjust profit forecasts to maintain “buy” ratings

Based on 24Q1-3 performance, the current objective consumption environment, purchasing power uncertainty, etc.; we adjusted the profit forecast. The company's revenue for 24-26 is 4.2 billion yuan, 4.4 billion yuan, and 4.6 billion yuan, respectively; EPS is 1.3 yuan, 1.4 yuan, and 1.6 yuan (the original value was 1.4 yuan, 1.6 yuan, and 1.8 yuan), and PE is 10X, 9X, and 8X, respectively.

Risk warning: Market operation risks, sales falling short of expectations, loss of core executives.