Three Squirrels(300783) Dongxing Securities·2024-09-03 00:00Investment Rating - The report maintains a "Strong Buy" rating for the company [3][5]. Core Views - The company achieved revenue of 5.075 billion yuan in the first half of 2024, representing a year-on-year increase of 75.39%, with a net profit of 290 million yuan, up 88.57% year-on-year [5]. - The company is committed to a "high-end cost-performance" strategy and has implemented three major structural reforms to enhance its business, supply chain, and organizational structure [5]. - The company has seen significant growth in its e-commerce channels, particularly on Douyin, which generated 1.224 billion yuan in revenue, a year-on-year increase of 180.73% [5]. - The gross margin for Q2 2024 was 21.9%, an increase of 3.24 percentage points year-on-year, indicating improved profitability [5]. - The company forecasts revenues of 10.548 billion yuan, 13.845 billion yuan, and 16.511 billion yuan for 2024, 2025, and 2026 respectively, with corresponding net profits of 392 million yuan, 525 million yuan, and 702 million yuan [5][8]. Financial Summary - The company reported a total revenue of 7,293.16 million yuan in 2022, with a projected revenue of 10,548.00 million yuan in 2024, reflecting a growth rate of 48.26% [8]. - The net profit for 2022 was 129.06 million yuan, with an expected increase to 392.01 million yuan in 2024, indicating a growth rate of 78.36% [8]. - The earnings per share (EPS) are projected to be 0.98 yuan in 2024, increasing to 1.31 yuan in 2025 and 1.75 yuan in 2026 [8].