KORRUN(300577) 国信证券·2024-10-31 03:31Investment Rating - The investment rating for the company is "Outperform the Market" [1][3][9] Core Views - The company reported a 64.4% year-on-year revenue growth in the third quarter, reaching 1.19 billion RMB, driven by the existing bag OEM business and the consolidation of Jiale [1] - The gross margin decreased by 3.2 percentage points to 22.0%, primarily due to Jiale's lower gross margin compared to the company's original business [1] - The net profit attributable to the parent company increased by 57.5% year-on-year to 0.7 billion RMB, influenced by increased investment income [1] - The company plans to distribute a cash dividend of 1.46 RMB per 10 shares, with a dividend payout ratio of approximately 10.8% [1] - The company expects to maintain high growth in its OEM business and improve profitability through capacity expansion in Indonesia over the next two years [1][7] Financial Performance Summary - Revenue for 2022 was 2,741 million RMB, projected to grow to 4,192 million RMB in 2024, reflecting a 35.0% increase [2][8] - Net profit for 2022 was 47 million RMB, expected to rise to 387 million RMB in 2024, indicating a growth of 234.3% [2][8] - Earnings per share (EPS) is projected to increase from 0.20 RMB in 2022 to 1.61 RMB in 2024 [2][8] - The company’s return on equity (ROE) is expected to improve from 2.7% in 2022 to 18.7% in 2024 [2][8] - The price-to-earnings (PE) ratio is projected to decrease from 115.0 in 2022 to 13.9 in 2024, indicating a more attractive valuation [2][8] Operational Insights - The company’s inventory increased by 96.2% year-on-year to 840 million RMB, mainly due to the consolidation of Jiale [1] - The inventory turnover days decreased by 2 days to 78 days, indicating stable operational efficiency [1] - Capital expenditures increased by 17.7% year-on-year to 40 million RMB, with plans for further capacity expansion in Indonesia [1][7]