Three Squirrels(300783) China Post Securities·2024-11-12 09:16Investment Rating - The report assigns a "Buy" rating for the company, marking its first coverage [2][5]. Core Insights - The company is optimistic about the upcoming Chinese New Year sales and has initiated a multi-brand acquisition strategy to enter various sectors including discount supermarkets and dairy beverages [2][3]. - The company has demonstrated significant revenue growth, with a 56.46% increase in total revenue and a 101.15% increase in net profit year-on-year for the first three quarters of 2024 [3]. - The company is focusing on a "high-end cost-performance" strategy, enhancing its distribution channels and supply chain efficiency [3][4]. Financial Performance Summary - For the first three quarters of 2024, the company reported total revenue of 716.9 million yuan, with a net profit of 34.1 million yuan, reflecting year-on-year growth rates of 56.46% and 101.15% respectively [3]. - The company expects revenues to reach 10.471 billion yuan in 2024, with a projected growth rate of 47.18% [5][7]. - The forecasted net profit for 2024 is 405.19 million yuan, representing an 84.35% increase compared to the previous year [5][7]. Strategic Developments - The company is enhancing its supply chain by establishing direct procurement partnerships with top global farms, which helps in controlling costs and ensuring quality [3]. - The company plans to expand its product offerings, including the acquisition of the Anhui Zhiyang brand to enter the dairy beverage market [3][4]. - The company is also focusing on improving its offline distribution channels and has seen a noticeable increase in performance in the second half of the year [3][4].