HEILAN HOME(SH:600398)2024-10-31 12:31Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook despite current challenges in the retail environment [7]. Core Insights - The company reported a decline in revenue and profit due to a weak external retail environment, with Q1-3 2024 revenue at 15.26 billion yuan, down 2% year-on-year, and net profit at 1.91 billion yuan, down 22.2% year-on-year [4][7]. - The company is positioned as a high-quality national apparel brand, with expectations for recovery in consumer spending, supported by a strong dividend policy [7]. Financial Performance Summary - For Q1-3 2024, the company achieved a gross margin of 44.6%, with an increase in expense ratios leading to a decline in net profit margin [4][6]. - The main brand, Hai Lan, generated revenue of 11.3 billion yuan, down 5% year-on-year, while online sales increased by 44.7% to 3.2 billion yuan [5][6]. - The company expects net profits for 2024-2026 to be 2.35 billion, 2.70 billion, and 3.03 billion yuan respectively, with corresponding PE ratios of 12, 11, and 10 [7][8].