ATRenew(RERE) 民生证券·2024-11-21 23:35Investment Rating - The report assigns a rating of "Buy" with target price estimates of 15/10/6 for the years 2023/2024/2025 respectively [1]. Core Insights - The company achieved a significant milestone in Q3 2024 by reporting a GAAP operating profit for the first time, with revenue reaching 4.051 billion yuan, a year-over-year increase of 24.4% and a quarter-over-quarter increase of 7.27% [1]. - Non-GAAP net profit for Q3 2024 was reported at 178.8 million yuan, reflecting an impressive year-over-year growth of 89% [1]. - The company is benefiting from the growing trend of second-hand trading, with a notable performance through the JD.com channel, where total recovery amounts from trade-ins and exchanges increased by over 40% year-over-year [1]. Summary by Sections Financial Performance - Q3 2024 revenue was 4.051 billion yuan, with operating profit at 24.89 million yuan, marking a year-over-year increase of 41% [1]. - The overall gross margin was reported at 19.95%, a slight increase of 0.13 percentage points year-over-year [1]. Business Segments - The 3P business segment generated revenue of 380 million yuan, showing a year-over-year growth of 13.89% [1]. - The company’s high-margin business is expanding, with the monetization rate of the 3P business increasing by 25.59% year-over-year, accounting for approximately 90.64% of total revenue [1]. Market Trends - The report highlights the increasing consumer adoption of trade-in programs, with the "Double Eleven" shopping festival seeing a 246% year-over-year growth in trade-in transactions through JD.com [1]. - The company is transitioning towards a more selective retail model, with sales of second-hand goods through various channels showing a year-over-year growth of 114.6% [1]. Shareholder Returns - The company has been actively repurchasing shares, with a total repurchase amount reaching 23.5 billion yuan as of September 30, 2024 [1]. - The report indicates that the company is focusing on enhancing its service capabilities and expanding its store network to improve customer experience [1].