OPPEIN(SH:603833) Xin Lang Cai Jing·2025-12-31 05:49Core Viewpoint - The company, Oppein Home, is undergoing a significant transformation towards a "whole home" strategy amid declining growth engines, raising questions about its ability to navigate through this challenging period and regain its former strength [3][17]. Financial Performance - In 2024, Oppein Home experienced its first-ever decline in both revenue and profit, with revenue dropping by 16.93% to 18.925 billion yuan and net profit decreasing by 14.38% to 2.599 billion yuan [4][21]. - The decline in performance is attributed to a reduction in internal growth drivers, particularly in its core cabinet and wardrobe businesses, which saw revenue declines of 22.48% and 18.06% respectively [6][23][24]. Market Position and Stock Performance - By the end of 2025, Oppein Home was removed from the CSI 300 index, marking a significant shift in its market position as its market value shrank by approximately two-thirds in less than four years [3][18]. - Following the index adjustment, the company's stock price fell by 0.53%, reaching an annual low of 49.30 yuan per share [19]. Store Network and Distribution Challenges - The company closed 2,058 stores in 2024, resulting in a net reduction of 973 stores compared to the previous year, with a continued decline into 2025 [7][26]. - The revenue from its distribution channels fell by 20.10% in 2024, marking two consecutive years of contraction [26]. Brand Reputation and Trust Issues - Recent incidents of authorized dealers "running away" with consumer funds have led to a crisis of brand trust, affecting the company's reputation [10][28]. - The company's inconsistent handling of consumer complaints and disputes has exacerbated public distrust, with many consumers facing unresolved issues [11][28]. Industry Context and Economic Challenges - Oppein Home's struggles reflect broader challenges in the Chinese economy, particularly the reliance on the real estate sector, which has been experiencing a downturn [13][30]. - The company aims to stabilize its transition to a "whole home" model by enhancing operational efficiency and upgrading its marketing supply chain [30]. Investor Sentiment and Internal Signals - There are signs of waning confidence among investors, as indicated by the reduction of holdings by significant shareholders and the company's founder's decision to sell shares for personal financial needs [14][31]. - The founder received approximately 2.1 billion yuan in dividends during the downturn, raising concerns about the alignment of interests between management and shareholders [14][30].