OPPEIN(SH:603833) Xin Lang Cai Jing·2025-04-29 02:40Core Viewpoint - The company reported a decline in revenue and net profit for 2024, with total revenue of 18.925 billion yuan, down 16.93% year-on-year, and a net profit of 2.599 billion yuan, down 14.38% year-on-year, slightly meeting market expectations [1] Financial Performance - Quarterly revenue for 2024 was 3.621 billion, 4.962 billion, 5.296 billion, and 5.046 billion yuan, showing year-on-year changes of +1.43%, -20.91%, -21.21%, and -18.84% respectively [1] - Quarterly net profit for 2024 was 0.218 billion, 0.772 billion, 1.041 billion, and 0.568 billion yuan, with year-on-year changes of +43%, -21.26%, -11.56%, and -21.71% respectively [1] Industry Trends - The industry is facing demand decline and channel transformation, impacting dealer channels. Revenue by product for kitchen cabinets, wardrobes, sanitary ware, and wooden doors was 5.45 billion, 9.79 billion, 1.09 billion, and 1.13 billion yuan, with year-on-year changes of -22.48%, -18.06%, -3.60%, and -17.66% respectively [2] - Revenue by channel for direct sales, dealers, and bulk business was 0.833 billion, 14.042 billion, and 3.045 billion yuan, with year-on-year changes of +0.57%, -20.10%, and -15.08% respectively [2] - The company has over 1,100 retail home furnishing stores, with a net increase of over 450 stores year-on-year, and a significant growth in home furnishing orders [2] Cost Control and Profitability - The company's gross margin increased by 1.76 percentage points to 35.91% in 2024, while the expense ratio rose by 2.53 percentage points to 20.98% [3] - The net profit margin for 2024 was 13.73%, up 0.41 percentage points year-on-year [3] Future Outlook - The company is focusing on improving net profit quality by targeting the old and second-hand housing market as a new growth area, driven by consumer preferences for high-quality products [3] - Plans include advancing the "land to household" mechanism reform and building a market-oriented operating system, along with enhancing internal management and cost efficiency [3] Earnings Forecast and Valuation - The earnings forecast for 2025 and 2026 has been revised down by 10% and 13% to 2.72 billion and 2.88 billion yuan respectively, with the current stock price corresponding to 15 and 14 times the earnings ratio for those years [4] - The target price remains at 85 yuan, implying a 27% upside potential based on a valuation of 19 and 18 times the earnings ratio for 2025 and 2026 [4]