BEAR APPLIANCE(SZ:002959) HTSC·2025-04-30 08:08Investment Rating - The report maintains a "Buy" rating for the company with a target price of 53.52 RMB [7][8]. Core Insights - The company reported Q1 2025 revenue of 1.32 billion RMB, a year-on-year increase of 10.58%, while net profit attributable to shareholders was 130 million RMB, a decrease of 13.96% year-on-year. The growth in revenue is attributed to a low base effect and the consolidation of Roman Smart since July 2024. The company is expected to continue its revenue and net profit recovery in Q2 2025 due to increased investment in product development and strong performance in the Douyin channel [1][5]. - Online sales channels showed positive performance in Q1 2025, with sales on Tmall, JD, and Douyin increasing by 21%, 16%, and 80% year-on-year, respectively. The company anticipates a significant recovery in demand for subsidized products as various regions implement replacement policies [2]. - The gross margin for Q1 2025 was 36.81%, reflecting a year-on-year decline of 1.7 percentage points, influenced by the consolidation of Roman Smart, which has a higher ODM ratio and lower gross margin compared to the company's branded business [3]. - The company achieved a reduction in expense ratios in Q1 2025, with a total expense ratio down by 1.66 percentage points year-on-year. Sales expense ratio decreased by 2.55 percentage points due to revenue growth and efficiency improvements, while management expenses increased slightly due to consolidation effects [4]. Financial Projections - The company forecasts net profit attributable to shareholders for 2025 to be 349.8 million RMB, with corresponding EPS of 2.23 RMB. The average PE ratio for comparable companies in 2025 is expected to be 26.6x, while the company is assigned a PE of 24x for 2025 [5][11].