OPPEIN(SH:603833) Guoxin Securities·2025-09-03 14:54Investment Rating - The investment rating for the company is "Outperform the Market" [6][4]. Core Views - The company has shown a narrowing decline in revenue with a year-on-year growth of 7% in non-recurring profit for Q2 2025, indicating gradual reform effectiveness [1]. - The company is committed to its home furnishing strategy, with a significant increase in overseas business and a focus on optimizing its supply chain to enhance profitability [2][3]. - Despite challenges in the real estate sector, the company is expected to maintain a positive growth trajectory in net profit for 2025-2027, albeit with a downward revision in profit forecasts [4]. Summary by Sections Financial Performance - In H1 2025, the company achieved revenue of 8.24 billion yuan, a decrease of 4.0% year-on-year, with a net profit of 1.02 billion yuan, reflecting a growth of 2.9% [1]. - For Q2 2025, revenue was 4.79 billion yuan, down 3.4% year-on-year, while net profit was 710 million yuan, down 8.0% [1]. Channel Performance - In H1 2025, revenue growth by channel was as follows: Direct sales +5.6%, Distribution -4.1%, Bulk -11.3%, and Overseas +30.1% [2]. - The company has expanded its overseas business significantly, adding 18 new distributors and achieving over 40% growth in overseas project orders [2]. Profitability and Cost Control - The gross margin for Q2 2025 increased to 37.6%, up 3.2 percentage points year-on-year, with improvements across various product categories [3]. - The company has implemented strict cost control measures, resulting in a decrease in sales expense ratio to 9.1% and management expense ratio to 6.1% [3]. Profit Forecasts - The profit forecasts for 2025-2027 have been revised downwards, with expected net profits of 2.701 billion yuan, 2.923 billion yuan, and 3.095 billion yuan respectively, reflecting year-on-year growth rates of 3.9%, 8.2%, and 5.9% [4][5].