Q3 收入微降，表现远超大盘。公司Q3 收入14.28 亿元/-4.36%，远超大盘及同行业品牌表现，主要系公司不断夯实品牌力及产品力，产品得到消费者青睐，单店收入及门店数量稳步增长。1）品牌：持续打造“年轻、时尚、会玩”的品牌形象，深受年轻客群认可。2）产品：坚持东方文化元素与现代时尚相结合，加快联名及IP 系列产品布局，设计精美、蕴含文化内涵的产品精准契合当代消费群体的喜好。Incidents:
Chao Acer released its 2024 three-quarter report. In the first three quarters, the company achieved revenue of 4.859 billion yuan/ +8.01%, net profit of 0.316 billion yuan/ +0.95%, after deducting 0.31 billion yuan/ +0.77% of non-net profit; Q3 achieved revenue of 1.428 billion yuan/ -4.36%, net profit of 0.086 billion yuan/ -17.21%, net profit of 0.085 billion yuan/ -17.71%.
Comment:
Revenue declined slightly in Q3, and the performance far surpassed the market. The company's Q3 revenue was 1.428 billion yuan/ -4.36%, far exceeding the market and brand performance in the same industry. The main reason was that the company continued to consolidate its brand strength and product strength. The products were favored by consumers, and the number of single store revenue and number of stores grew steadily. 1) Brand: Continuously build a “young, stylish, and playful” brand image, which is well recognized by young customers. 2) Product: Adhere to the combination of Oriental cultural elements with modern fashion, accelerate the layout of co-branded and IP series products, and accurately meet the preferences of contemporary consumers with exquisite design and cultural connotations.
Quality and efficiency have continued to be improved, and the cost rate has declined steadily. The cost rate for the first three quarters was 15.01% /-2.04pct, of which sales expenses ratio was 11.62% /-1.96pct; management expenses rate 2.00%/+0.13pct; R&D expenses rate 0.90% /-0.14pct; financial expenses ratio 0.49% /-0.07pct. Single Q3 cost rate 15.91% /-0.67pct, with sales expense ratio 12.25% /-0.30pct, management expense ratio 2.19% /-0.21pct, R&D expense ratio 1.03% /-0.04pct, and financial cost ratio 0.44% /-0.12pct. The company continues to strengthen cost control and improve the efficiency of cost investment, and the cost ratio has been declining steadily.
The share of gold increased, and gross margin declined slightly. The gross profit margin for the first three quarters was 24.16% /-2.58pct, net profit margin 6.50% /-0.45pct, net profit margin 6.38% /-0.46pct. Single Q3 gross profit margin 24.20% /-2.25pct, net profit margin 6.05% /-0.94pct, net profit margin 5.93% /-0.96pct. The share of traditional gold products with low gross profit continues to rise, and gross margin has declined.
Investment advice: The company is a trend leader in domestic jewelry design. Products rich in design and cultural heritage have won the favor of young customers. It is expected to achieve steady business growth through enhanced product strength and channel expansion. Taking into account the pressure on terminal gold consumption and adjusting profit forecasts, the operating income for 2024-2026 is expected to be 6.681/7.783/8.877 billion yuan, respectively, and net profit to mother is 0.37/0.44/0.507 billion yuan, respectively. The corresponding PE is 12/10/9 times, respectively, maintaining the “buy” rating.
Risk warning: macroeconomic downturn; store expansion falling short of expectations: risk of gold price fluctuations; performance forecasts and valuation judgments falling short of expectations.
