Zhejiang Natural Outdoor Goods (SH:605080) Shanxi Securities·2025-05-09 10:23Investment Rating - The report maintains a "Buy-B" rating for the company, indicating an expected price increase of over 15% relative to the benchmark index [4][10]. Core Views - The company has demonstrated rapid revenue growth and significant improvement in profitability, particularly in its luggage product segment [4][5]. - For 2024, the company achieved a revenue of 1.002 billion yuan, a year-on-year increase of 21.75%, and a net profit attributable to shareholders of 185 million yuan, up 41.67% year-on-year [4][5]. - In Q1 2025, the company reported a revenue of 357 million yuan, reflecting a 30.40% year-on-year growth, and a net profit of 96 million yuan, which is a remarkable increase of 148.29% year-on-year [4][5]. Financial Performance Summary - The company’s revenue from various product categories in 2024 showed significant growth: air beds (588 million yuan, +13.87%), luggage (204 million yuan, +30.85%), cushions (70 million yuan, +15.70%), and other products (134 million yuan, +48.00%) [6]. - The company’s gross margin for 2024 was 33.72%, with a slight decrease of 0.12 percentage points year-on-year, while Q1 2025 saw an increase to 38.83%, up 0.46 percentage points year-on-year [7]. - The net profit margin for 2024 was 18.47%, an increase of 2.60 percentage points year-on-year, and for Q1 2025, it rose to 26.92%, up 12.78 percentage points year-on-year [7]. Future Earnings Projections - The company is expected to achieve earnings per share (EPS) of 1.91 yuan, 2.47 yuan, and 3.13 yuan for the years 2025, 2026, and 2027 respectively [10]. - The projected price-to-earnings (P/E) ratios for 2025, 2026, and 2027 are 13.6, 10.5, and 8.3 respectively, indicating a favorable valuation trend [10].