HEILAN HOME(SH:600398) Shenwan Hongyuan Securities·2025-07-01 12:45Investment Rating - The investment rating for the company is "Buy" (maintained) [5] Core Views - The company is positioned as the official strategic partner of the Suzhou Super League, which has gained significant popularity, enhancing brand exposure and sales conversion [7] - The company has a strong historical performance in sports sponsorship, including the Wuxi Marathon, which further strengthens its brand value [7] - The expected recovery in retail sales in Q2 2025 is anticipated due to the high-profile events and partnerships [7] - The company maintains a high dividend payout ratio, with a projected static dividend yield of 5.6% based on the current stock price [7] - Profit forecasts for the company indicate a steady increase in net profit from 24.1 billion in 2025 to 30.5 billion in 2027, with corresponding PE ratios decreasing from 15 to 12 [7] Financial Summary - Total revenue is projected to grow from 20,957 million in 2024 to 27,004 million in 2027, with a CAGR of approximately 10% [3][17] - Net profit is expected to increase from 2,159 million in 2024 to 3,047 million in 2027, reflecting a growth rate of 12.6% in 2027 [3][17] - The gross margin is projected to improve from 44.5% in 2024 to 47.6% in 2027, indicating enhanced operational efficiency [3][17] - The return on equity (ROE) is expected to rise from 12.7% in 2024 to 16.4% in 2027, showcasing improved profitability [3][17]