Three Squirrels(300783)2025-04-01 09:27Investment Rating - The report maintains a "Buy" rating for the company, with expected net profits of 5.36 billion, 7.04 billion, and 9.06 billion for the years 2025, 2026, and 2027 respectively, reflecting growth rates of 31.45%, 31.26%, and 28.85% [5] Core Insights - The company achieved total revenue of 10.622 billion in 2024, a year-on-year increase of 49.30%, and a net profit of 408 million, up 85.51% year-on-year [1] - The company's strategy of "high-end cost performance" continues to deepen, with significant growth in e-commerce channels, particularly through Douyin, which generated 2.188 billion in revenue, a year-on-year increase of 81.73% [2] - The company plans to issue H shares and list on the Hong Kong Stock Exchange, with the proposal already approved by the board [3] Revenue and Profitability - In Q4 2024, the company reported total revenue of 3.453 billion, a year-on-year increase of 36.35%, and a net profit of 67 million, up 32.63% year-on-year [1] - The gross profit margin for 2024 was 24.25%, an increase of 0.92 percentage points year-on-year, attributed to improved supply chain efficiency [4] - The company’s net profit margin for 2024 was 3.84%, reflecting a year-on-year increase of 0.75 percentage points [4] Sales Channels and Product Development - The third-party e-commerce platform revenue reached 7.407 billion, accounting for 69.73% of total revenue, with significant contributions from Douyin, Tmall, and JD.com [2] - The company launched over 1,000 SKUs in 2024, successfully creating more than 20 billion-level single products [2] - The company’s sub-brands, including "Little Deer Blue Blue," generated 794 million in revenue, a year-on-year increase of 35.03% [3] Future Projections - The company is projected to achieve revenues of 13.668 billion, 17.041 billion, and 20.609 billion for the years 2025, 2026, and 2027 respectively, with corresponding year-on-year growth rates of 28.67%, 24.68%, and 20.94% [7] - The expected earnings per share for 2025, 2026, and 2027 are 1.34, 1.75, and 2.26 respectively [7]