OPPEIN(SH:603833) Huafu Securities·2025-09-02 09:21Investment Rating - The report maintains a "Buy" rating for the company, expecting a relative increase in stock price of over 20% compared to the market benchmark index within the next six months [19]. Core Views - The company reported a revenue of 8.24 billion yuan in H1 2025, a year-on-year decrease of 4%, while the net profit attributable to shareholders was 1.02 billion yuan, an increase of 2.9% year-on-year. The non-recurring net profit reached 940 million yuan, marking a year-on-year increase of 21.4% [3][4]. - Despite the challenges in the real estate and home furnishing industries, the company is responding quickly to market opportunities and remains committed to its home furnishing development strategy [4]. - The company has seen a significant increase in its gross margin, which reached 36.2% in H1, up by 3.7 percentage points year-on-year, indicating effective cost control and operational efficiency [5]. Financial Performance Summary - In H1 2025, the company achieved a gross margin of 36.2%, with a net profit margin of 12.4%, reflecting a year-on-year increase of 0.8 percentage points [5]. - The company’s revenue from various product lines showed mixed results, with cabinets and wardrobes down by 5.9% and 4.1% respectively, while other categories like "other" products saw a 3.9% increase [4]. - The company’s retail home furnishing stores exceeded 1,200, with over 60% of distributors either having or planning to establish retail home furnishing stores [4]. Earnings Forecast and Investment Recommendations - The company’s projected net profits for 2025, 2026, and 2027 are 2.72 billion yuan, 2.97 billion yuan, and 3.22 billion yuan respectively, with growth rates of 4.7%, 8.9%, and 8.5% [5]. - The current stock price corresponds to a PE ratio of 12X for 2025, indicating a favorable valuation for a leading player in the industry [5].