HEILAN HOME(SH:600398) Orient Securities·2025-09-09 08:24Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 9.00 CNY based on an 18x PE valuation for 2025 [2][10][4]. Core Insights - The company plans to initiate an overseas listing, which is expected to enhance its global expansion and brand influence, particularly in overseas markets [9]. - The new business venture, JD Outlet, is in a rapid expansion phase, with significant growth potential anticipated in the medium term [9]. - The domestic business of the main brand is expected to gradually improve in the second half of the year, providing a resilient foundation for the company [9]. Financial Forecasts - The company’s earnings per share (EPS) projections for 2025-2027 are adjusted to 0.50, 0.55, and 0.62 CNY respectively [2]. - Revenue forecasts for 2023A to 2027E are as follows: 21,528 million CNY (2023A), 20,957 million CNY (2024A), 21,937 million CNY (2025E), 23,798 million CNY (2026E), and 25,833 million CNY (2027E) [2][15]. - The net profit attributable to the parent company is projected to be 2,952 million CNY (2023A), 2,159 million CNY (2024A), 2,384 million CNY (2025E), 2,645 million CNY (2026E), and 2,999 million CNY (2027E) [2][15]. Key Financial Ratios - The gross margin is expected to improve from 44.5% in 2023A to 46.0% in 2027E [2][15]. - The net profit margin is projected to increase from 13.7% in 2023A to 11.6% in 2027E [2][15]. - The return on equity (ROE) is forecasted to rise from 19.3% in 2023A to 15.0% in 2027E [2][15].