HEILAN HOME(SH:600398) SINOLINK SECURITIES·2025-04-30 04:30Investment Rating - The report maintains a "Buy" rating for the company, indicating a projected price increase of over 15% in the next 6-12 months [5]. Core Insights - The company reported a revenue of 20.957 billion RMB for 2024, a decrease of 2.65% year-on-year, with a net profit of 2.159 billion RMB, down 26.88% [2]. - The Q1 2025 revenue was 6.187 billion RMB, showing a slight increase of 0.16%, while the net profit rose by 5.46% to 935 million RMB [2]. - The company achieved a total cash dividend of 1.969 billion RMB in 2024, with a dividend payout ratio exceeding 91% [2]. Operational Analysis - The main business operations are stable, with significant growth in online and overseas channels. The main brand, Hai Lan Zhi Jia, generated revenue of 15.270 billion RMB, down 7.22%, while group purchases brought in 2.224 billion RMB, down 2.51% [2]. - In Q1 2025, the main brand's revenue decreased by 9.52% to 4.642 billion RMB, while group purchases increased by 17.58% to 646 million RMB [2]. - The direct sales channel achieved revenue of 1.592 billion RMB in Q1 2025, a year-on-year increase of 13.15%, with a total of 1,510 stores by the end of Q1 2025 [2]. - Online revenue reached 4.419 billion RMB in 2024, a growth of 35.63%, indicating a strong performance in online channels [2]. - The company is expanding its international presence, particularly in Malaysia, Thailand, Vietnam, and Singapore, with overseas revenue of 355 million RMB, up 30.75% [2]. New Business Development - The company is experiencing positive momentum in new business formats, with other brands generating revenue of 2.668 billion RMB in 2024, an increase of 32.38%, and 743 million RMB in Q1 2025, a growth of 100.22% [3]. - The acquisition of a controlling stake in Sports Holdings contributed 994 million RMB in revenue and a net profit of 67.05 million RMB from April to December 2024 [3]. - The first JD Outlet opened in September 2024, and by April 2025, the number of stores reached 12, leveraging high cost-performance to attract consumers [3]. Profitability and Forecast - The gross margin for 2024 and Q1 2025 was 44.52% and 46.62%, respectively, indicating stable profitability [3]. - The net profit margin for 2024 and Q1 2025 was 10.30% and 15.12%, respectively, showing improvement in profitability [3]. - The company forecasts EPS of 0.57, 0.65, and 0.75 RMB for 2025-2027, with corresponding PE ratios of 14, 12, and 11 times [5].