Henglin(SH:603661) Tianfeng Securities·2025-04-28 14:14Investment Rating - The investment rating for the company is "Buy" with a target price not specified [4] Core Views - The company reported a revenue of 26.54 billion yuan in Q1 2025, a year-on-year increase of 12.7%, but a net profit attributable to shareholders of 0.52 billion yuan, down 49.5% year-on-year [1] - The company's revenue for 2024 reached a historical high of 110.29 billion yuan, up 34.6% year-on-year, primarily driven by the growth in cross-border e-commerce [1] - The company is focusing on expanding its sales channels and supporting its cross-border e-commerce business while maintaining its manufacturing base [4] Financial Performance Summary - In Q1 2025, the company achieved a revenue of 26.54 billion yuan, with a net profit of 0.52 billion yuan, and a non-recurring net profit of 0.53 billion yuan [1] - For 2024, the company reported a total revenue of 110.29 billion yuan, with a net profit of 2.63 billion yuan, and a non-recurring net profit of 2.81 billion yuan [1] - The gross profit margin for 2024 was 18.64%, a decrease of 5.1 percentage points year-on-year, while the net profit margin was 2.39%, down 0.8 percentage points year-on-year [1] Product Segment Performance - Office furniture revenue in 2024 was 35.52 billion yuan, up 2.4% year-on-year, with a gross margin of 22.07% [1] - Soft furniture revenue reached 14.27 billion yuan, up 10.8% year-on-year, with a gross margin of 20.29% [1] - The revenue from composite home and other products surged to 34.63 billion yuan, a year-on-year increase of 331.1%, with a gross margin of 15.65% [1] Business Strategy - The company is enhancing its cross-border e-commerce capabilities by covering major online retail platforms in the U.S. and establishing independent sites to boost brand development [2] - The company is also expanding its global production capacity in locations such as China, Vietnam, and Switzerland to better meet customer demands and increase market share [3]