SYG(300740) 国元证券·2024-11-01 12:30Investment Rating - The report maintains a "Buy" rating for the company [4][10]. Core Views - The company is experiencing pressure on its third-quarter performance due to brand adjustments and preemptive promotional spending, leading to a decline in profits. However, gross margins continue to improve [2]. - For the first three quarters of 2024, the company achieved a revenue of 3.045 billion yuan, a year-on-year decrease of 9.84%, and a net profit attributable to the parent company of 94 million yuan, down 47.6% year-on-year [2]. - The company is focusing on high-end and global strategies, with significant growth in its self-owned brands, particularly in the high-end segment [3]. Financial Performance Summary - The company reported a revenue of 7.52 billion yuan in Q3 2024, a year-on-year decline of 30.87%, with a net profit attributable to the parent company of -11 million yuan [2]. - The gross margin for Q3 was 67.99%, an increase of 7.67 percentage points year-on-year, while the net margin was -1.49% [2]. - The sales expense ratio for Q3 was 57.45%, up 8.17 percentage points year-on-year, primarily due to preemptive spending for promotional activities [2]. - The company expects to achieve net profits of 200 million, 295 million, and 356 million yuan for 2024, 2025, and 2026 respectively, with corresponding EPS of 0.51, 0.76, and 0.91 yuan [4]. Strategic Developments - The company continues to implement a dual business strategy of self-owned and CP brands, with notable growth in high-end products [3]. - The company has acquired a high-end skincare brand in the U.S. and gained complete ownership of a French brand, enhancing its product structure and market positioning [3]. - The company is currently in an adjustment phase for its brands, with a focus on optimizing its product mix and enhancing profitability through successful overseas brand operations [3].