Hotata(SH:603848) Tianfeng Securities·2025-05-01 06:01Investment Rating - The report maintains a "Buy" rating for the company with a target price not specified [5][17]. Core Views - The company is experiencing a decline in revenue and net profit due to a slowdown in global economic growth and weak domestic consumer demand, with a 9.51% decrease in sales for 2024 [1][4]. - The company is focusing on optimizing its product structure and increasing the promotion and sales of smart home products, which saw a sales volume increase of 19.42%, while traditional drying rack products experienced a 21.44% decrease [2][3]. - The "old-for-new" policy is expected to further stimulate demand, with the company actively leveraging national and local subsidy policies to enhance cash flow efficiency [3][4]. Financial Performance Summary - In Q1 2025, the company reported revenue of 260 million, a decrease of 11%, and a net profit of 30 million, down 40% [1]. - For the year 2024, the company expects revenue of 1.6 billion, a decrease of 8%, and a net profit of 250 million, down 24% [1][9]. - The gross profit margin for the main business products is 48.77%, a decrease of 2.06 percentage points, primarily due to severe market homogenization in traditional drying racks [2][4]. Future Projections - The company has adjusted its profit forecast, expecting net profits of 280 million, 330 million, and 390 million for 2025, 2026, and 2027 respectively, with corresponding EPS of 0.70, 0.81, and 0.96 [4][9]. - The company aims to strengthen its brand position and improve channel management efficiency while exploring product innovation in the smart home sector [3][4].