Three Squirrels(300783) Guoyuan Securities·2024-09-02 12:00Investment Rating - The report maintains a rating of "Add" for the company [2] Core Views - The company achieved total revenue of 5.075 billion yuan in H1 2024, representing a year-on-year increase of 75.39%, with a net profit attributable to shareholders of 290 million yuan, up 88.57% year-on-year [2][3] - The growth in revenue was primarily driven by the Douyin e-commerce platform, which saw a remarkable year-on-year growth of 180.73%, contributing 1.224 billion yuan to the total revenue [3] - The company continues to expand its national snack store network, opening 209 new stores by the end of H1 2024, with a revenue contribution of 175 million yuan from these stores [3] - The three main product categories, nuts, baked goods, and mixed products, showed strong performance, with revenues of 2.760 billion yuan, 609 million yuan, and 934 million yuan respectively, reflecting year-on-year growth rates of 67.90%, 38.85%, and 164.82% [3] - The company has optimized its supply chain, leading to an increase in gross margin to 25.85%, up 0.88 percentage points year-on-year, and a significant improvement in net profit margin [3] Financial Data and Valuation - The company is projected to achieve net profits of 401 million yuan, 574 million yuan, and 768 million yuan for the years 2024, 2025, and 2026, with growth rates of 82.63%, 43.02%, and 33.75% respectively [4] - The price-to-earnings (P/E) ratios for the years 2024, 2025, and 2026 are estimated to be 18, 12, and 9 times respectively, based on a market capitalization of 7.1 billion yuan as of August 30 [4] - The company's revenue is expected to reach 10.205 billion yuan in 2024, with a year-on-year growth of 43.44% [4] Key Metrics - The company reported a return on equity (ROE) of 14.06% for 2024, projected to increase to 19.67% by 2026 [4] - The earnings per share (EPS) is expected to rise from 0.55 yuan in 2023 to 1.91 yuan in 2026 [4] - The company’s total assets are projected to grow from 55.43 billion yuan in 2023 to 84.12 billion yuan in 2026 [7]