OPPEIN(SH:603833) ZHESHANG SECURITIES·2025-04-30 11:19Investment Rating - The investment rating for the company is "Buy" and is maintained [6] Core Views - The company reported a strong Q1 2025 performance with revenue of 3.447 billion (down 4.8% year-on-year) and a net profit of 307 million (up 41.29%) [1] - The increase in profitability is attributed to a 4.31 percentage point rise in gross margin and a reduction in management and R&D expense ratios [1] - The company's contract liabilities reached 2.9 billion, significantly up from 1.964 billion at the end of 2024, indicating strong market share gains [1] Summary by Sections Q1 Performance - Q1 2025 revenue from distribution stores was 2.586 billion (down 1%), while direct stores saw revenue of 164 million (up 10%) [2] - The total number of stores was 7,729, with a focus on optimizing inefficient stores [2] - The bulk business revenue was 496 million (down 28.61%), primarily due to construction pressures [2] Product Segments - Cabinet revenue was 977 million (down 8.49%), while wardrobe and related products generated 1.8 billion (down 5.56%) [3] - Bathroom and wooden door segments turned positive, with revenues of 223 million (up 9.66%) and 220 million (up 0.98%) respectively [3] Operational Strategy - The company employs a localized operation model to assist distributors in developing tailored home furnishing transformation plans [4] - The integration of AI in e-commerce has led to a nearly 10% year-on-year increase in online traffic, benefiting over 4,000 distributors [4] Financial Forecast and Valuation - Revenue projections for 2025-2027 are 19.881 billion (up 5.05%), 21.411 billion (up 7.70%), and 22.919 billion (up 7.04%) respectively [5] - Net profit forecasts for the same period are 2.854 billion (up 9.81%), 3.064 billion (up 7.36%), and 3.329 billion (up 8.59%) [5] - The corresponding P/E ratios are projected to be 13.86X, 12.91X, and 11.89X [5]