M&G(603899) 国泰君安·2024-10-31 17:36Investment Rating - The report maintains an "Accumulate" rating for the company, with a target price of 37.86 CNY, unchanged from the previous forecast [3][8]. Core Views - The company's performance is in line with expectations, and a recovery in operations is anticipated. The report emphasizes a "one body, two wings" strategy aimed at steady growth despite short-term pressures from the consumer environment [8]. - Revenue for Q3 2024 reached 6.06 billion CNY, reflecting a year-on-year increase of 2.8%. The report highlights strong performance in online business and various product segments [8]. - The report projects EPS for 2024-2026 to be 1.89, 2.24, and 2.60 CNY respectively, with a reference valuation of 20X PE for 2024 [8][9]. Financial Summary - The company reported a net profit of 1.527 billion CNY for 2023, with a projected increase to 1.749 billion CNY in 2024, representing a growth rate of 14.5% [9]. - The gross profit margin for Q3 2024 was 20.5%, with a net profit margin of 6.6%, showing slight year-on-year improvements [8]. - The total market capitalization is 26.791 billion CNY, with a current share price of 29.00 CNY [4][3]. Revenue Breakdown - For the first three quarters of 2024, revenue from writing instruments, student stationery, office supplies, and other products was 2.02 billion CNY, 2.76 billion CNY, 2.47 billion CNY, and 670 million CNY respectively, with year-on-year growth rates of 8.8%, 0.5%, 4.5%, and 19.4% [8]. - The company operates 740 retail stores nationwide, with significant contributions from its sub-brands [8]. Strategic Outlook - The report indicates that the company is actively pursuing strategic changes to enhance store quality and expand online channels. The focus is on improving service quality and product variety to increase market share [8].