Three Squirrels(300783) Huaxin Securities·2024-10-11 06:30Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company has achieved significant profit growth, driven by its commitment to a high-end cost-performance strategy [1] - The company is advancing structural reforms and continuously optimizing its cost structure [1] - The long-term confidence in the company's high-end cost-performance strategy is strong, with expected EPS growth from 0.89 to 1.54 yuan from 2024 to 2026 [1][3] Summary by Sections Financial Performance - The company expects a net profit attributable to shareholders of 338-342 million yuan for Q1-Q3 2024, representing a 99% year-on-year increase [1] - The expected net profit for Q3 2024 is 48-52 million yuan, showing a 200% increase year-on-year [1] - The company anticipates a non-recurring profit of 7.2-7.5 million yuan, mainly from government subsidies [1] Revenue and Growth Projections - The company's main revenue is projected to grow from 7,115 million yuan in 2023 to 10,136 million yuan in 2024, reflecting a growth rate of 42.5% [3] - The net profit is expected to increase from 220 million yuan in 2023 to 355 million yuan in 2024, indicating a growth rate of 61.7% [3] Strategic Initiatives - The company is focusing on a "D+N" omnichannel strategy, enhancing distribution and product competitiveness [1] - It is innovating and upgrading its supply chain with a "one product, one chain" approach, which is expected to stabilize overall gross margins [1] - The organization is undergoing transformation to create a more agile and responsive network structure, aimed at capturing dynamic market opportunities [1]