Rongtai health(SH:603579) Huachuang Securities·2025-05-21 11:14Investment Rating - The report maintains a "Strong Buy" rating for the company, expecting it to outperform the benchmark index by over 20% in the next six months [7][13]. Core Views - The company reported a revenue of 1.6 billion yuan and a net profit of 190 million yuan for 2024, reflecting a year-on-year decline of 13.9% and 5.3% respectively. The first quarter of 2025 showed a slight revenue decrease of 1.4% year-on-year [1][3]. - The company plans to distribute a cash dividend of 3.5 yuan per 10 shares, resulting in a dividend payout ratio of 59.3% for 2024 [1]. - The company is focusing on expanding its second growth curve, with new product launches and technology advancements in areas such as AI and automotive seating [7]. Financial Performance Summary - For 2024, the company achieved total revenue of 1,597 million yuan, with a projected growth of 4.2% in 2025, reaching 1,664 million yuan [3]. - The net profit for 2024 was 192 million yuan, with an expected increase to 200 million yuan in 2025, reflecting a growth rate of 4.0% [3]. - The gross margin for 2024 was reported at 31.7%, with an improvement expected in 2025 [7]. - The company’s earnings per share (EPS) for 2024 is projected at 1.08 yuan, increasing to 1.13 yuan in 2025 [3]. Market and Product Insights - The sales of massage chairs and small massage appliances faced challenges in 2024, with revenues of 152 million yuan and 5 million yuan respectively, down 14.1% and 28.6% year-on-year [7]. - The domestic market saw a revenue decline of 19.1%, while the overseas market experienced a mixed performance, with a notable 60% growth in cross-border e-commerce through Amazon [7]. - The first quarter of 2025 showed signs of recovery in the domestic and Korean markets, with revenue increases of approximately 8% and 25% respectively [7].