UE(603600) 华泰证券·2025-04-25 05:15Investment Rating - The report maintains a "Buy" rating for the company with a target price of 13.78 RMB [7][8]. Core Insights - The company achieved a revenue of 4.749 billion RMB in 2024, representing a year-on-year increase of 34.2%. The net profit attributable to shareholders was 296.2 million RMB, slightly down by 0.6% year-on-year, which was below previous expectations [1]. - In Q1 2025, the company reported a revenue of 1.010 billion RMB, up 17.9% year-on-year, and a net profit of 58 million RMB, up 34.8% year-on-year, indicating strong revenue growth driven by new overseas customers and product categories [1][2]. - The company is expected to continue expanding its overseas customer base and enhancing its domestic brand presence, which will support ongoing revenue growth [1][4]. Revenue and Profit Analysis - In 2024, the company's overseas revenue reached 3.61 billion RMB, a year-on-year increase of 36.8%, while domestic revenue was 1.12 billion RMB, up 25.9% [2]. - The company’s core revenue sources, such as office chairs, saw a revenue increase of 33.5% year-on-year, with sales volume and average price rising by 18.2% and 13.0%, respectively [2]. Margin and Cost Structure - The gross margin for 2024 was 21.6%, down 1.2 percentage points year-on-year, primarily due to a shift in product mix towards lower-margin products [3]. - The operating expense ratio decreased by 1.5 percentage points to 14.2%, with sales expense ratio down to 6.6% due to improved marketing efficiency [3]. Earnings Forecast and Valuation - The report slightly lowers the revenue forecast for 2025-2026 but introduces a forecast for 2027, estimating net profits of 350.08 million RMB, 412.61 million RMB, and 482.11 million RMB for 2025, 2026, and 2027, respectively [4][6]. - The company is assigned a price-to-earnings (PE) ratio of 13 times for 2025, with a target price of 13.78 RMB based on this valuation [4].