Healthcare (SH:603313) Tianfeng Securities·2025-05-06 09:18Investment Rating - The investment rating for the company is "Accumulate" with a target price of 7.8 CNY [5] Core Views - The company has shown a strong recovery in Q1 2025 with a revenue of 2.043 billion CNY, up 12.31% year-on-year, and a net profit of 59 million CNY, up 196.22% year-on-year, indicating a positive trend in profitability [1] - The company is enhancing its global market competitiveness and accelerating market expansion, with a steady revenue growth of 5.94% in 2024 despite a decline in profits due to increased e-commerce operational costs and credit impairment losses [1][9] - The overseas business has shown robust growth, particularly in Europe, where revenue reached 6.75 billion CNY, up 6.68% year-on-year, and the online business in overseas markets grew by 48.72% [2][3] Summary by Sections Financial Performance - In Q1 2025, the gross margin was 39.37%, up 0.85 percentage points year-on-year, and the net profit margin was 2.87%, up 1.8 percentage points year-on-year [1] - For 2024, the company reported a total revenue of 8.449 billion CNY, a year-on-year increase of 5.94%, but a net loss of 151 million CNY [9] Product Performance - Revenue from mattresses in 2024 was 4.42 billion CNY, up 10.95% year-on-year, while pillow revenue slightly decreased by 0.25% to 606 million CNY [2] - The company has maintained a leading position in the smart bed market, recognized as the top brand in China for smart bed sales [4] Market Expansion - The North American market has stabilized, with a reduced revenue decline of 12.20 percentage points compared to the previous year, and the company is focusing on optimizing its business structure [3] - The company has multiple production bases globally, including in Serbia, the USA, Thailand, and Spain, which enhances its resilience against trade tensions [3] Domestic Market Strategy - Domestic revenue reached 1.48 billion CNY in 2024, with a gross margin of 42.47%, and both online and offline channels have shown growth [4] - The company is enhancing brand building through a dual-channel strategy, focusing on both online and offline sales [4]