CBEST(600729)2024-11-01 03:30Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company reported a 12% year-on-year decline in net profit attributable to shareholders for Q3 2024, with expectations for improvement in Q4 due to subsidy policies [1][3] - The company's revenue for the first three quarters of 2024 was 13 billion yuan, down 12% year-on-year, while the net profit attributable to shareholders was 920 million yuan, down 19.2% year-on-year [1][2] - The retail business remains under pressure, but the investment income from the consumer finance segment showed significant growth [2][3] Summary by Sections Financial Performance - For Q3 2024, the company achieved revenue of 4.02 billion yuan, a decrease of 13% year-on-year, and a net profit of 211 million yuan, down 12.43% year-on-year [1][2] - The adjusted net profit excluding the consumer finance segment was 640 million yuan, reflecting a 56% decline year-on-year [2] Business Segments - The consumer finance segment reported an investment income of approximately 150 million yuan, a 95% increase year-on-year, while the retail segment faced challenges due to weak overall consumer demand [2][3] Profitability Metrics - The company's gross margin and net profit margin for Q3 2024 were 24.4% and 5.2%, respectively, with the net profit margin benefiting from increased investment income [2] Future Outlook - The company anticipates that upcoming consumer stimulus policies will help restore its retail business, particularly benefiting from the government's subsidy program for replacing old appliances [3] - The earnings forecast for 2024-2026 has been adjusted, with net profit expectations revised to 1.23 billion, 1.33 billion, and 1.44 billion yuan, respectively [3]