Investment Rating - The report maintains a "Buy" rating for the company, with a target price of HKD 58.29, indicating a potential upside of 23.9% from the current share price of HKD 47.05 [2][4]. Core Insights - The company has demonstrated robust global store expansion, achieving a record high gross margin of 44.1% in Q3 2024, up 3.7 percentage points year-on-year [2][4]. - Revenue for the first three quarters of 2024 reached HKD 12.281 billion, reflecting a year-on-year increase of 13.7% [2][4]. - The adjusted net profit margin for Q3 was 15.7%, slightly down from 15.2% in the previous year, indicating a minor decline of 1.3 percentage points [2][4]. - Domestic same-store sales faced pressure, with a decline of approximately 1.7%, particularly in lower-tier cities, while higher-tier cities performed better [2][4]. - The company is expected to benefit from strategic initiatives that enhance average transaction value, with a projected increase in same-store sales driven by IP strategies [2][4]. Financial Performance Summary - For the first three quarters of 2024, the company reported revenue of HKD 12.281 billion, a 13.7% increase year-on-year, with Q3 revenue at HKD 4.523 billion, up 6.9% [2][4]. - The adjusted net profit for the first three quarters was HKD 1.768 billion, reflecting a year-on-year increase of 177.2% [2][4]. - The company’s gross margin improved due to a higher contribution from overseas markets, with overseas revenue share rising from 32% to 37% year-on-year [2][4]. - The report forecasts continued revenue growth, with projected revenues of HKD 17.212 billion in 2024, HKD 20.729 billion in 2025, and HKD 24.359 billion in 2026 [6][7]. Store Expansion and Market Strategy - As of Q3 2024, the company had a total of 4,250 stores in China, with a net increase of 135 stores during the quarter [2][4]. - The overseas store count reached 2,936, with a net addition of 183 stores in Q3, indicating strong international expansion [2][4]. - The report highlights the potential for further growth in overseas markets, particularly with the upcoming Harry Potter IP release expected to boost sales [2][4].
名创优品：全球拓店节奏稳健，Q3毛利率再创新高