occurrences

The company achieved total revenue of 243.04/24.304/11.593/11.564 billion yuan in the first three quarters of 2024, with a year-on-year ratio of 10.76%/10.76%/9.72%/10.24%. Single Q3 achieved total revenue/operating revenue/net profit attributable to mothers/ net profit after deducting non-net profit of 73.99/7.399/3.566/3.57 billion yuan, 0.67%/2.58%/3.52% year-on-year.

Core points

The performance was in line with expectations. The company achieved total revenue of 243.04/24.304/11.593/11.564 billion yuan in the first three quarters of 2024, with a year-on-year ratio of 10.76%/10.76%/9.72%/10.24%. In the first three quarters of 2024, the company's gross margin/net profit margin was 88.43%/47.70%, -0.01/-0.45pct, respectively; the tax ratio/sales/management/R&D/finance expenses ratio were 11.27%/10.29%/3.15%/0.59%/-1.00%, respectively, 0.86/-0.68/-0.69/0.14pct, respectively.

The company achieved total revenue/operating revenue/net profit attributable to mothers/net profit after deducting non-net profit of 73.99/7.399/3.566/3.57 billion yuan in Q3, 0.67%/2.58%/3.52% year-on-year.

In 24Q3, the company's gross margin/ net profit margin was 88.12%/48.19%, -0.52/0.90pct, respectively; the tax ratio/sales/management/R&D/finance expense ratios were 9.39%/11.76%/3.54%/0.91%/-1.59%, respectively, 0/-1.07/-0.58/+0.09pct, respectively.

Sales revenue for the first three quarters was 28.269 billion yuan, +2.26%, and the current net revenue was 12.465 billion yuan and +37.69%. The current good net performance was mainly due to a decrease in the company's cash accepted for labor payments. Sales revenue for the third quarter of a single quarter was 8.107 billion yuan, -19.42%, and current net revenue was 4.24 billion yuan, +24.52%.

Contract debt (advance payments) at the end of the third quarter was 2.654 billion yuan, a year-on-year decrease of 0.307 billion yuan and a month-on-month increase of 0.312 billion yuan (up 1.028 billion yuan of the same caliber last year). Market-side repayment pressure is transmitted to statements and the risk of companies actively slowing down.

Profit Forecasts and Investment Ratings

Mainly due to continued weakness in business demand, we anticipate that Q4 may implement coping strategies to further control speed and eliminate risks, which is conducive to a lighter launch next year. The current economic policy is moving ahead, waiting for demand to improve next year. We expect the company's revenue in 2024-2026 to be 31.141/32.683/35.867 billion yuan, 3.00%/4.95%/9.74% year over year, net profit to mother 13.527/14.303/15.838 billion yuan, 2.12%/5.74%/10.73% year-on-year, and EPS for the next three years will be 9.19/9.72/10.76 yuan, respectively. Corresponding to the current share price PE is 15/14/13 times, respectively, maintaining the “buy” rating.

Risk warning:

Economy/demand recovery falls short of expectations, company sales fall short of expectations, food safety and other risks.