HEILAN HOME(600398)2025-05-02 15:35Investment Rating - The report maintains a strong buy rating for the company, with a current market capitalization of 39.9 billion and a corresponding PE of 16X [5][11]. Core Insights - The company's revenue for 2024 decreased by 2.65% to 20.957 billion, and net profit attributable to shareholders fell by 26.88% to 2.159 billion. However, Q1 2025 shows signs of stabilization with revenue growth of 0.16% and net profit growth of 5.46% [1][10]. - The company is expanding its sports retail and urban outlet business, which is expected to become a new growth highlight [1][10]. - The main brand's revenue has declined, but other brands are experiencing rapid growth, particularly in direct sales and online channels [2][10]. Revenue and Profitability - In 2024, the main brand's revenue was 15.270 billion, down 7.22%, while other brands achieved a revenue of 2.668 billion, up 32.38% [2][10]. - For Q1 2025, the main brand's revenue decreased by 9.52% to 4.642 billion, while other brands saw a 100% increase to 0.743 billion [2][10]. - The net profit margin for 2024 decreased by 3.41 percentage points to 10.3%, while the gross margin improved slightly to 44.52% [4][10]. Store Expansion and Brand Performance - The total number of stores at the end of 2024 was 7,178, with a net decrease in the main brand's stores but an increase in other brands [8][10]. - The company is focusing on enhancing its operational quality through direct store expansion and strategic partnerships, such as with JD.com for urban outlet development [10][11]. Financial Forecasts - Revenue projections for 2025 to 2027 are set at 22.274 billion, 24.466 billion, and 25.940 billion, reflecting growth rates of 6%, 10%, and 6% respectively [11][13]. - Net profit forecasts for the same period are 2.443 billion, 2.721 billion, and 2.900 billion, with expected growth rates of 13%, 11%, and 7% [11][13].