According to a research report by Guotai Junan, Dingdong Maicai (DDL) achieved a revenue of 6.538 billion yuan in the third quarter of 2024, an increase of 27.21%, and an adjusted net profit attributable to the parent company of 164 million yuan. 1) Opening warehouses accelerates category expansion, with peak season orders and GMV both accelerating growth. 2) The scale effect of fresh food categories is strong, and there is still room for profit margin and growth Dingdong has already overcome the most difficult moment and restarted the expansion of pre positioned warehouses in Jiangsu and Zhejiang regions. The number of new pre positioned warehouses opened in the third quarter of 2024 is 80, achieving the annual opening target. It is expected to open 110 warehouses throughout 2024 The improvement in profitability mainly comes from the scale effect of the supply chain and the economies of scale resulting from the increase in order density; The month on month improvement trend of Dingdong Maicai's profit margin will also continue; ③ Recent changes in the competitive landscape of the front-end warehouse industry: JD.com has increased investment in front-end warehouses, Hema has restarted front-end warehouses, and Xiaoxiang Supermarket has made rapid progress in North and South China, with relatively stable business expansion in the East China region. There are differences in the three models (positioning/category), different regions (Beijing, South China), and changes in the industry environment. There is no aggressive price war, and the short-term impact on Dingdong's profitability and expansion space is not significant.