Buydeem Group(SZ:300824) HTSC·2025-04-24 08:44Investment Rating - The investment rating for the company is maintained as "Buy" with a target price of 12.15 RMB [8][9]. Core Views - The company's Q1 2025 performance showed significant growth, with revenue reaching 213 million RMB, a year-on-year increase of 33.41%, and net profit attributable to the parent company at 33 million RMB, up 47.71% year-on-year. This growth is primarily driven by domestic policies promoting trade-in programs and the company's multi-faceted marketing and product strategies [1][2][21]. - The domestic brand business experienced robust growth, with domestic revenue increasing by 51.4% year-on-year, accounting for 78% of total revenue, benefiting from national subsidy policies. However, overseas business faced challenges, with a slight increase of 0.63% year-on-year in overseas brand revenue and an 8.66% decline in ODM business revenue [2][5]. - The company's gross margin improved to 49.87%, up 1.15 percentage points year-on-year, attributed to a higher proportion of high-margin domestic sales and product upgrades [3]. - Despite an increase in sales expense ratio by 3.39 percentage points due to intensified marketing efforts, the overall period expense ratio decreased by 2.01 percentage points, indicating effective management of administrative expenses [4]. - The company maintains a positive outlook for domestic business growth in 2025, with expected net profits of 89.45 million RMB, 106.49 million RMB, and 115.50 million RMB for 2025, 2026, and 2027 respectively, corresponding to EPS of 0.27 RMB, 0.33 RMB, and 0.35 RMB [5][7]. Summary by Sections Financial Performance - Q1 2025 revenue was 213 million RMB, a 33.41% increase year-on-year, with net profit at 33 million RMB, up 47.71% [1][21]. - The company reported a significant improvement in cash flow, with a net cash flow from operating activities of 29.31 million RMB compared to a negative 2.086 million RMB in the same period last year [1]. Business Segments - Domestic brand revenue grew by 51.4% year-on-year, while overseas brand revenue saw a modest increase of 0.63% [2]. - The ODM business faced a decline of 8.66% year-on-year due to external factors such as U.S. tariff policies [2]. Profitability Metrics - Gross margin improved to 49.87%, reflecting a shift towards higher-margin domestic sales [3]. - The overall period expense ratio decreased by 2.01 percentage points, indicating effective cost management [4]. Future Outlook - The company expects continued growth in domestic sales driven by favorable policies and new channel expansions, with projected net profits for 2025, 2026, and 2027 at 89.45 million RMB, 106.49 million RMB, and 115.50 million RMB respectively [5][7].