ROBAM(SZ:002508) Xin Lang Zheng Quan·2025-06-18 08:54Core Viewpoint - The "trade-in" policy has boosted retail sales in the home appliance sector, yet the company Boss Electric has reported disappointing first-quarter results for 2025, indicating a decline in revenue and profit despite a slight increase in gross margin [1][3]. Financial Performance - In Q1 2025, Boss Electric achieved total revenue of 2.076 billion yuan, a year-on-year decrease of 7.2% [1]. - The net profit attributable to shareholders was approximately 340 million yuan, down nearly 15% year-on-year [1]. - The company experienced a cash outflow of about 187 million yuan from operating activities, contrasting with a cash inflow of 54.89 million yuan in the same period of 2024 [1]. - The gross margin increased by 2.08 percentage points to 52.7%, but the net profit margin fell by 1.49 percentage points compared to Q1 2024 [1]. Market Dynamics - The sales of core products, particularly range hoods and gas stoves, have not met expectations, contributing to the negative growth in Q1 2025 [7]. - Despite the overall market for range hoods and gas stoves showing growth rates of 12.1% and 11.7% respectively from January to April 2025, Boss Electric's performance diverged from these trends [7]. - The company has heavily relied on the real estate sector for its sales, with a significant portion of revenue coming from engineering channels [8]. Product Structure - Boss Electric's product structure is heavily skewed towards a few key categories, with range hoods and gas stoves accounting for 73.4% of total revenue in 2024 [3]. - The revenue from other products like dishwashers and integrated stoves is significantly lower, indicating a lack of diversification [3]. Cash Flow and Receivables - The company's accounts receivable have been increasing, reaching 1.782 billion yuan in Q1 2025, which is 5.3 times the net profit for the same period [9]. - The accounts receivable turnover days exceeded 80 days, marking a 34% increase compared to the end of 2024 [9]. Corporate Governance and Incentives - Despite financial struggles, the company has maintained high dividend payouts, distributing a total of 1.416 billion yuan in cash dividends in 2024, which accounted for 103.9% of net profit [12]. - Executive compensation has been rising, with significant increases in salaries for top management, raising concerns about alignment with company performance [12][13]. - The stock option exercise price has been lowered, indicating a potential dilution of shareholder value [13].