ZHONGYIN BABI FOOD CO.(605338) 华鑫证券·2024-10-29 05:30Investment Rating - The investment rating for the company is "Buy (Maintain)" [1] Core Views - The company has shown a narrowing of single-store gaps and steady progress in store expansion, with a focus on quality and stable contributions from group meals [1][3] - The company reported a revenue of 1.21 billion yuan for Q1-Q3 2024, a year-on-year increase of 2%, and a net profit attributable to shareholders of 194 million yuan, up 26% year-on-year [1] - The company aims to open 1,000 new stores by the end of the year, with a new factory in Central China expected to start production by the end of 2024 or early 2025 [1][3] Summary by Sections Financial Performance - For Q3 2024, the company achieved a revenue of 447 million yuan, a decrease of 0.5% year-on-year, with a net profit of 83 million yuan, an increase of 14% year-on-year [1] - The gross margin for Q3 2024 was 26.79%, a slight decrease of 0.1 percentage points, while the sales and management expense ratios were 3.96% and 8.83%, respectively [1] Store Expansion and Market Strategy - The company has opened 835 new stores, with a total of 4,066 stores across various regions, including East China, South China, Central China, and North China [1] - The sales revenue from different channels in Q3 2024 was 340 million yuan from franchised stores, 4 million yuan from direct stores, and 970 million yuan from group meals, with group meal sales increasing by 9% year-on-year [1] Earnings Forecast - The earnings per share (EPS) for 2024-2026 are adjusted to 0.94, 1.00, and 1.04 yuan, respectively, with corresponding price-to-earnings (PE) ratios of 18, 17, and 16 times [3][5]