OPPEIN(SH:603833) Changjiang Securities·2025-05-08 09:45Investment Rating - The investment rating for the company is "Buy" and is maintained [8]. Core Views - The company achieved revenue of 18.925 billion, net profit attributable to shareholders of 2.599 billion, and net profit excluding non-recurring items of 2.316 billion in 2024, representing declines of 17%, 14%, and 16% year-on-year respectively. For Q4 2024, the figures were 5.046 billion, 568 million, and 553 million, showing year-on-year declines of 19%, 22%, and a slight increase of 1% respectively. The first quarter of 2025 showed a revenue of 3.447 billion, net profit of 308 million, and net profit excluding non-recurring items of 266 million, with year-on-year changes of -5%, +41%, and +86% respectively [2][6][11]. Summary by Sections Revenue and Profitability - The overall revenue for 2024 decreased by 14% compared to the previous year, but the decline narrowed from -21% in Q3 2024. The company is expected to see continued improvement in Q2 2025, with contract liabilities increasing by 169% year-on-year by the end of Q1 2025 [7][11]. Channel and Product Performance - In Q4 2024, retail, bulk, and export sales saw year-on-year declines of 22%, 23%, and an increase of 49% respectively. The integrated home segment showed resilience, with annual growth rates of 26% and a decline of 19% for the retail segment. In Q1 2025, retail and bulk sales were down by 1% and 29%, while exports increased by 46% [7][11]. Margin Improvement - The gross margin has shown improvement for eight consecutive quarters, with Q4 2024 and Q1 2025 gross margins increasing by 2.3 and 4.3 percentage points year-on-year respectively. This improvement is attributed to internal efficiency measures and a shift towards higher-margin direct sales [11][13]. Strategic Initiatives - The company is optimizing its channel structure and advancing its integrated home strategy, which has strengthened its operational resilience and competitiveness. In 2024, the number of distribution stores decreased by 966, while the number of effective retail integrated home stores increased by over 450, reaching more than 1,100 [11][13]. Future Outlook - The company plans to enhance profit quality as a core goal for 2025, focusing on internal transformation and cost reduction. This includes a granular approach to profit centers and optimizing product development and delivery processes [11][13]. Financial Projections - The company is expected to distribute 1.5 billion in dividends in 2024, with a payout ratio of 58% and a dividend yield of 3.7%. Projected net profits for 2025-2027 are 2.89 billion, 3.17 billion, and 3.57 billion respectively, with corresponding price-to-earnings ratios of 14, 13, and 11 times [11][12].