Zhejiang Meorient Commerce & Exhibition (300795) 申万宏源·2024-10-30 08:15Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for its stock performance relative to the market [5][6]. Core Insights - The company reported third-quarter results that met expectations, with a revenue of 165 million yuan, representing a year-on-year increase of 42.3%, and a net profit of 27.42 million yuan, up 396% year-on-year [6]. - For the first three quarters of 2024, the company achieved a revenue of 425 million yuan, down 9.44% year-on-year, and a net profit of 68.14 million yuan, a decrease of 16.62% year-on-year [6]. - The company anticipates a rebound in performance in the fourth quarter, driven by an increase in exhibition space sales and potential government subsidies for small and medium-sized enterprises [5][6]. Financial Summary - The company’s total revenue for 2023 is projected at 835 million yuan, with an expected increase to 989 million yuan in 2024, and further growth to 1.283 billion yuan in 2025 [10]. - The net profit for 2023 is estimated at 197 million yuan, with projections of 232 million yuan in 2024 and 324 million yuan in 2025 [10]. - The gross profit margin for the third quarter of 2024 was reported at 44%, a decrease of 9.7 percentage points year-on-year [6][7]. Market Position and Future Outlook - The company is expanding its exhibition schedule, including new events in Saudi Arabia and Japan, which are expected to enhance revenue generation [8]. - The report highlights the importance of adapting exhibition offerings based on market demand, with a focus on maintaining customer loyalty and optimizing exhibition sizes [8]. - The company is expected to benefit from increased trade with countries along the Belt and Road Initiative, as well as a potential easing of local government debt pressures that could enhance subsidies for exporters [5][8].