Shanghai Shuixing Home Textile (SH:603365) Orient Securities·2025-05-13 08:51Investment Rating - The report maintains a "Buy" rating for the company [2][7]. Core Views - The company is expected to achieve earnings per share (EPS) of 1.47, 1.57, and 1.68 yuan for the years 2025 to 2027, respectively, with a target price of 20.58 yuan based on a 14x PE valuation for 2025 [2][7]. - The company has demonstrated a significant improvement in Q4 performance, with a notable increase in net profit driven by operational leverage and cost control [6]. Financial Performance Summary - For 2023, the company reported a revenue of 4,211 million yuan, with a year-on-year growth of 14.9%. However, in 2024, revenue is projected to decline slightly to 4,193 million yuan, a decrease of 0.4% [4][6]. - The net profit attributable to the parent company for 2023 was 379 million yuan, reflecting a year-on-year increase of 36.2%. In 2024, it is expected to decrease to 367 million yuan, a decline of 3.3% [4][6]. - The gross margin for 2024 is expected to improve to 41.4%, up from 40.0% in 2023, indicating a positive trend in profitability [4][6]. Earnings Forecast - The company’s earnings forecasts have been adjusted, with the EPS estimates for 2025, 2026, and 2027 being 1.47, 1.57, and 1.68 yuan, respectively [2][7]. - The projected revenue for 2025 is 4,417 million yuan, with a growth rate of 5.3% compared to 2024 [4][6]. Market Position and Strategy - The company is focusing on deepening its presence in lower-tier cities and leveraging its e-commerce channels, which aligns with current consumer trends amid macroeconomic uncertainties [6]. - The company has successfully implemented a big product strategy, which has contributed to improved performance in Q4 [6].