HEILAN HOME(SH:600398) Tianfeng Securities·2025-05-04 14:54Investment Rating - The investment rating for the company is "Buy" with a target price not specified [6][18]. Core Views - The company is expected to accelerate the opening of JD Outlet stores, which aligns with the trend of rational consumption and high cost-performance demand from consumers [3]. - The company has adjusted its profit forecasts for 2025-2027, expecting revenues of 221 billion, 243 billion, and 268 billion respectively, with net profits of 24 billion, 27 billion, and 29 billion [5]. Financial Performance Summary - For Q1 2025, the company reported revenue of 6.2 billion, a year-on-year increase of 0.16%, and a net profit of 900 million, up 5% year-on-year [1]. - In Q4 2024, the company experienced a revenue decline of 4% year-on-year, with a net profit drop of 50% [1]. - The total revenue for 2024 was 21 billion, down 3% year-on-year, with a net profit of 2.2 billion, down 27% [1]. Brand Performance - The main brand, Hailan Home, generated revenue of 15.3 billion in 2024, a decrease of 7% year-on-year, with a gross margin of 47% [1]. - The group purchase and customization series saw revenue of 2.2 billion in 2024, down 3% year-on-year, with a gross margin of 40% [1]. Strategic Initiatives - The company is expanding into the sports sector through a partnership with Adidas, enhancing its retail management capabilities [3]. - A strategic collaboration with JD has been established to create a new urban outlet model, leveraging JD's brand and traffic advantages [3]. - The company is also focusing on overseas market expansion, achieving 355 million in revenue from international markets in 2024, a growth of 30.75% [4]. Financial Projections - The company has revised its earnings forecasts for 2025-2027, projecting earnings per share (EPS) of 0.50, 0.55, and 0.61 respectively [5]. - The price-to-earnings (P/E) ratio is expected to be 17, 15, and 14 for the years 2025-2027 [5].