Joyoung(002242) 国盛证券·2024-11-01 01:48Investment Rating - The report downgrades the investment rating of the company to "Accumulate" from "Buy" [2][3]. Core Views - The company reported a significant decline in revenue and profit for Q3 2024, with a year-on-year revenue decrease of 27.12% and a net profit decline of 166.46% [1][2]. - The gross margin for Q1-Q3 2024 was 26.27%, showing a slight increase of 0.88 percentage points year-on-year, while Q3 2024 gross margin decreased by 0.58 percentage points to 21.85% [2]. - The sales expense ratio increased significantly, with Q1-Q3 2024 sales expenses rising by 4.01 percentage points to 17.18%, and Q3 2024 sales expenses increasing by 8.07 percentage points to 19.12% [2]. - The net profit margin for Q1-Q3 2024 decreased by 3.90 percentage points to 1.48%, and for Q3 2024, it dropped by 9.25 percentage points to -4.51% [2]. Financial Performance Summary - For the first three quarters of 2024, the company achieved a revenue of 6.182 billion yuan, down 8.84% year-on-year, and a net profit of 98 million yuan, down 73.02% year-on-year [1]. - The forecast for net profit for 2024-2026 is adjusted to 257 million yuan, 284 million yuan, and 314 million yuan, reflecting a year-on-year decline of 33.8% in 2024, followed by growth of 10.2% and 10.5% in the subsequent years [2][6]. - The company's total market capitalization is approximately 8.238 billion yuan, with a closing price of 10.74 yuan as of October 30, 2024 [3]. Financial Ratios - The company’s P/E ratio is projected to be 32.0 in 2024, decreasing to 26.3 by 2026, while the P/B ratio is expected to decline from 2.3 in 2024 to 2.0 in 2026 [6][10]. - The return on equity (ROE) is forecasted to decrease from 7.1% in 2024 to 7.7% in 2026 [6].