OPPEIN(SH:603833) Changjiang Securities·2025-09-08 14:43Investment Rating - The investment rating for the company is "Buy" and is maintained [8] Core Views - In H1 2025, the company achieved revenue, net profit attributable to shareholders, and net profit excluding non-recurring items of 8.241 billion, 1.018 billion, and 0.943 billion yuan respectively, with year-on-year changes of -4%, +3%, and +21% [2][6] - For Q2 2025, the figures were 4.794 billion, 0.710 billion, and 0.677 billion yuan, reflecting year-on-year changes of -3%, -8%, and +7% respectively, indicating operational resilience despite a slight revenue decline [2][6] - The company demonstrated improved operating profit margins in Q2, showcasing ongoing supply chain optimization and efficiency enhancements [2][12] - The company is advancing channel structure optimization and the transformation towards a comprehensive home furnishing model, which strengthens operational resilience and competitiveness [2][12] - The company has a robust dividend plan and a competitive home furnishing system, currently possessing a strong safety margin [2][12] Summary by Sections Financial Performance - The company reported a revenue of 8.241 billion yuan in H1 2025, a decrease of 4% year-on-year, while net profit attributable to shareholders increased by 3% to 1.018 billion yuan, and net profit excluding non-recurring items rose by 21% to 0.943 billion yuan [2][6] - In Q2 2025, revenue was 4.794 billion yuan, down 3% year-on-year, with net profit attributable to shareholders at 0.710 billion yuan, down 8% year-on-year [2][6] Operational Insights - The company experienced a slight decline in revenue in Q2, which reflects its operational resilience [12] - The gross profit margin improved by 3.2 percentage points in Q2, with various product lines and channels showing positive trends [12] - The company reduced its number of stores by 104 in H1 2025, while actively encouraging distributors to transition to a comprehensive home furnishing model [12] Strategic Initiatives - The company is focused on cost reduction and efficiency improvements to empower its channels and sustain its comprehensive home furnishing strategy [12] - The company aims to enhance its operational capabilities through product development, quality improvements, and delivery reforms [12] - The company plans to maintain a cash dividend of no less than 1.5 billion yuan annually from 2024 to 2026, indicating strong cash flow and a current dividend yield of approximately 4.4% [12]