Three Squirrels(300783)2024-11-12 09:40Investment Rating - The report maintains a "Cautious Recommendation" rating for the company [6]. Core Views - The company has shown impressive growth in offline distribution, with a year-on-year increase of 51% in Q3 2024 and a remarkable 285% growth in October 2024. This growth is supported by various policies aimed at empowering distributors [2]. - The company is actively preparing for the upcoming peak season, with significant upgrades across product categories and packaging, alongside strong market support and channel policies [3]. - The long-term goal includes expanding offline channels and achieving a distribution target of 10 billion [3]. Financial Forecasts - The projected revenue for 2024 is 10,209.42 million, reflecting a growth rate of 43.50%. By 2026, revenue is expected to reach 17,311.62 million [5]. - The net profit attributable to the parent company is forecasted to be 401.28 million in 2024, with a growth rate of 82.58%, and is expected to reach 752.29 million by 2026 [5]. - The earnings per share (EPS) are projected to be 1.00 in 2024, increasing to 1.88 by 2026, with corresponding price-to-earnings (PE) ratios of 35, 25, and 19 for the years 2024, 2025, and 2026 respectively [3][5]. Business Strategy - The company is focusing on enhancing its product offerings and maintaining a competitive edge through cost leadership and high-end value propositions [2]. - The offline business strategy includes a focus on differentiated products and customized displays to stabilize pricing and enhance sales performance [2]. - The company is also exploring investment and acquisition opportunities to leverage existing resources and capabilities in new areas [3].