Three Squirrels(SZ:300783) Guoyuan Securities·2024-10-31 01:14Investment Rating - The report maintains a "Buy" rating for the company, with expected net profits of 4.01 billion, 5.74 billion, and 7.68 billion for the years 2024, 2025, and 2026 respectively, reflecting growth rates of 82.63%, 43.02%, and 33.75% [3]. Core Insights - The company reported a total revenue of 71.69 billion for the first three quarters of 2024, representing a year-on-year increase of 56.46%, and a net profit of 3.41 billion, up 101.15% year-on-year [1]. - The company has successfully implemented a "high-end cost-performance" strategy, leading to continuous revenue growth over five consecutive quarters, with quarterly revenue growth rates consistently above 20% since Q3 2023 [1][2]. - The company plans to invest up to 2 billion in building supply chain bases and 1 billion in incubating new sub-brands, aiming to enhance product matching and supply chain efficiency [1]. - The company is also looking to invest up to 3.6 billion through acquisitions to strengthen its offline presence and enter the dairy beverage market [1]. Financial Performance Summary - For the first three quarters of 2024, the company's net profit margin and gross margin were 4.76% and 25.44%, respectively, showing improvements of 1.06 and 0.70 percentage points year-on-year [2]. - In Q3 2024, the net profit margin and gross margin were 2.46% and 24.46%, reflecting year-on-year increases of 1.51 and 0.11 percentage points [2]. - The company expects revenues to reach 102.05 billion in 2024, with a year-on-year growth of 43.44% [4].