2）华东地区占比94.21%，Q3 收入降幅环比缩窄。2024 年前三季度，公司华东地区收入4.75 亿元，占比为94.21%，收入同比-17.55%，24Q3 收入同比-9.59%；第二大地区为华中，24 年前三季度收入为0.15 亿元，占比为2.92%。occurrences
The company announced its 2024 three-quarter report. In the first three quarters of 2024, the company achieved total revenue of 0.511 billion yuan, a year-on-year net profit of -17.50%, a net profit of 0.068 billion yuan, a year-on-year ratio of -36.83%, after deducting non-return net profit of 0.066 billion yuan, or -36.79% year-on-year. In 24Q3, the company achieved total revenue of 0.183 billion yuan, -9.19% year-on-year, net profit of 0.025 billion yuan, or -21.81% year-on-year, net profit of non-return to mother 0.025 billion yuan, or -22.28% year-on-year.
The number of franchise stores has been optimized, and other channel stores and customers continue to expand 1) Meat, poultry, and fishery products's Q3 revenue decline narrowed. In the first three quarters of 2024, the company's revenue from meat, poultry, fishery products and other products was 0.339, 0.137, and 0.028 billion yuan, respectively, -17.62%, -18.57%, and -6.63%; 24Q3 revenue was -7.86%, -7.17%, and -37.17%, respectively.
2) East China accounted for 94.21%, and the decline in Q3 revenue narrowed month-on-month. In the first three quarters of 2024, the company's revenue in East China was 0.475 billion yuan, accounting for 94.21%, revenue -17.55%, and 24Q3 revenue -9.59%; the second-largest region was Central China, with revenue of 0.015 billion yuan in the first three quarters of 24, accounting for 2.92%.
3) The supermarket channel achieved positive growth. In the first three quarters of 2024, the company's retail (franchise, distribution), supermarket, wholesale, “direct sales and others” and e-commerce channel revenue was 3.41 (2.73, 0.68), 0.25, 0.133, 0.004, 0.001 billion yuan, respectively, -16.29% (-17.14%, -12.73%), +7.58%, -20.09%, -64.75%, and -27.20%; 24Q3 revenue was -8.66% (-10.09%, -2.24%), + 9.18%, -8.50%, -92.15%, -27.79%.
4) The number of franchise stores has been optimized, and other channel stores and customers continue to expand. At the end of 2024Q3, the company's franchisees, dealerships, supermarket customers, and wholesale customers were 1753, 756, 97, and 576 respectively, with a net increase of 25, 10, 3, and 17 in Q3, a net increase of 70, 28, 14, and 41 compared to the beginning of the year.
The increase in cost sharing and financial expenses of the new plant affects the Q3 net interest rate 1) The sharing of the cost of starting a new plant affects the net interest rate in the short term. In the first three quarters of 2024, the company's gross margin was 25.23%, -0.93pct year on year, 13.26% year-on-year, and -4.06pct year on year. Mainly due to the effects of declining gross margin and increased management and financial expenses, the company's management and financial expenses ratio was +2.36 and +0.80pct to 7.08% and -1.49% year over year. The increase in management expense ratio was mainly due to the increase in shared expenses due to the commissioning of the new plant.
2) The increase in cost sharing and financial expenses for the commissioning of the new plant affected Q3 net interest rates. In 24Q3, the company's gross margin was 25.91%, -0.34pct year on year, and the net profit margin to mother was 13.86%, -2.24pct year over year, mainly due to the effects of declining gross margin, increased management and financial expenses, and increased disposal losses; the company's management and financial expense ratios were +1.02 and +3.91 pct to 7.17% and -0.29% year over year.
Investment advice
We expect the company's net profit to be 0.088/0.091/0.095 billion yuan respectively in 24/25/26, up -34.86%, 2.94%, and 4.46% year-on-year, corresponding to 32/31/30 times PE on November 1 (market value 2.8 billion yuan), maintaining the “incremental” rating.
Risk warning
Food safety risks, raw material price fluctuation risks, and terminal demand falling short of expectations.