The company released a three-quarter report

The company's 24Q3 revenue of 0.8 billion yuan increased by 2%, net profit due to mother of 0.03 billion yuan decreased by 45%, and net profit not returned to mother was 0.03 billion yuan, a decrease of 23%;

The company's 241-Q3 revenue of 2.1 billion yuan increased by 9%, net profit to mother of 0.08 billion yuan decreased by 16%, and net profit not returned to mother was 0.07 billion yuan, a decrease of 8%;

24Q1-3's gross profit margin of 25.7% decreased by 1.4 pcts, and net profit margin of 3.9% decreased by 1.1 pcts.

Channel and scale advantages are gradually emerging

At present, the company has formed a diversified sales channel system such as direct sales, dealers and e-commerce platforms, and has developed and formed a sales network pattern covering 31 provinces, autonomous regions and municipalities directly under the Central Government. On this basis, the company continues to promote the addition, replacement and upgrading of outlets, “empower” dealer teams through smart cloud screens and other projects to build stronger channels and networks, and achieve quick response and timely feedback on subsequent product promotion and application.

The scale effect of safety gate production is obvious. Enterprises need to reach a certain production scale to effectively reduce comprehensive production costs and ensure reasonable profit margins for enterprises. Safety door production has high requirements for production site area, production equipment efficiency, production line layout, cargo flow space, cargo storage space, etc. Currently, the domestic safety door market requires more and more customized products. Customized production places higher demands on the flexibility of safety gate companies' production, and highly flexible production processes place higher demands on production site size and financial strength.

The company is one of the largest safety gate companies in China. The company has four major bases in Yongkang, Wuyi, Sichuan and Hangzhou (newly added). The Changtian Intelligent Manufacturing Base was rated as the industry's first future factory in 2021, and the scale of production and sales has obvious advantages within the same industry.

Adjust profit forecasts to maintain “gain” rating

Based on the 24Q1-3 performance, the macro environment is mainly driven by real estate sales pressure. We adjusted the profit forecast. EPS for 24-26 is 0.25/0.3 and 0.37 yuan (the original value was 0.05/0.07/0.1 billion yuan), respectively; PE is 39X, 32X, and 26X, respectively.

Risk warning: Increased competition risk in the industry; sales falling short of expectations; risk of losing key personnel.