Three Squirrels(300783) Tai Ping Yang·2024-10-31 13:33Investment Rating - The report maintains a "Buy" rating for the company with a target price of 31.68, compared to the last closing price of 26.52 [1]. Core Insights - The company reported a revenue of 2.095 billion, representing a year-on-year growth of 24.03%, and a net profit attributable to shareholders of 51 million, which is a significant increase of 221.89% year-on-year [1]. - The company is focusing on a "D+N" multi-channel collaborative strategy, enhancing distribution with 105 daily sales products and completing the first round of market penetration [1]. - The company has initiated a new chapter in investment and mergers, planning to acquire control or related business and assets of several companies with a total investment not exceeding 2.6 billion [1]. Financial Performance Summary - For 2024, the company expects revenue growth rates of 41%, 25%, and 21% for the years 2024, 2025, and 2026 respectively, with net profit growth rates of 83%, 43%, and 31% [1][4]. - The company’s gross margin for Q3 2024 was 24.46%, an increase of 0.11 percentage points year-on-year, with a net profit margin of 2.46%, up by 1.51 percentage points year-on-year [1]. - The company’s total assets are projected to grow from 5.543 billion in 2023 to 8.134 billion by 2026, with total liabilities increasing from 3.029 billion to 4.120 billion in the same period [5]. Future Projections - The report forecasts earnings per share (EPS) of 1.00, 1.44, and 1.89 for the years 2024, 2025, and 2026 respectively, with corresponding price-to-earnings (PE) ratios of 26x, 18x, and 14x [1][4]. - The company is expected to continue benefiting from the growth of platforms like Douyin and Pinduoduo, with optimistic growth projections for Q4 [1].