Hotata(SH:603848) Xin Lang Cai Jing·2025-04-29 02:40Revenue Performance - In 2024, the company achieved revenue of 1.557 billion yuan, a year-on-year decrease of 8%, with Q4 2024 revenue declining by 15% to 488 million yuan [1][3] - For Q1 2025, revenue was 259 million yuan, reflecting an 11% year-on-year decline [2][3] - The decline in revenue is attributed to weak consumer demand, although there was significant growth in smart product sales [3] Product Analysis - In 2024, revenue from smart home products and traditional drying racks decreased by 7% and 19% year-on-year, respectively [3] - Smart home product sales increased by 19%, while traditional drying rack sales fell by 21% [3] - The average selling price of smart products dropped to 866 yuan due to industry price wars, with expectations of price stabilization in Q1 2025 [3] Profitability Insights - Gross margin faced pressure due to changes in product mix, with Q4 2024 and Q1 2025 gross margins at 37.6% and 47.9%, respectively, reflecting year-on-year declines of 15.5 and 4.0 percentage points [4] - The increase in sales, management, and financial expense ratios indicates that expenses are rising faster than revenue growth, impacting profitability [4] - The net profit margin for Q1 2025 was 12.9%, showing a recovery trend compared to the previous quarter [4] Strategic Outlook - The company is well-positioned in the smart drying market, holding a market share of approximately 40%, and is expected to benefit from government subsidies starting in March 2025 [5] - The company plans to expand its product range beyond smart drying racks to include smart locks, curtains, and other smart home products, aiming for a comprehensive smart home ecosystem [5] - Profit forecasts for 2025-2027 project net profits of 280 million, 330 million, and 380 million yuan, with corresponding price-to-earnings ratios of 20, 17, and 15 [6]