Jason Furniture (Hangzhou) (SH:603816) EBSCN·2025-10-28 07:04Investment Rating - The report maintains a "Buy" rating for the company [1] Core Insights - The company reported better-than-expected performance in Q3 2025, with revenue and net profit for the first three quarters reaching 15.01 billion and 1.54 billion yuan, respectively, representing year-on-year growth of 8.8% and 13.2% [5][6] - Domestic sales are stabilizing and improving, while foreign trade shows resilience, with significant growth in mattress sales in Southeast Asia and other non-US markets [6][8] - The company's gross margin for the first three quarters was 32.4%, up 0.5 percentage points year-on-year, and the net profit margin was 10.2%, up 0.4 percentage points year-on-year [6][8] Summary by Sections Financial Performance - In Q3 2025, the company achieved revenue of 5.21 billion yuan, a year-on-year increase of 6.5%, and a net profit of 5.2 billion yuan, up 12.0% year-on-year [5][6] - The company’s operating expenses ratio for the first three quarters was 19.2%, down 0.9 percentage points year-on-year, indicating improved operational efficiency [7] Growth Opportunities - The company is focusing on structural growth opportunities in the domestic market, particularly in functional and smart furniture, which are driving long-term performance [6][8] - The company is expanding its global footprint with production bases in Vietnam, Mexico, and the US, leading to rapid growth in non-US markets [6][8] Earnings Forecast and Valuation - The report slightly raises the net profit forecast for 2025-2027 to 2.04 billion, 2.27 billion, and 2.54 billion yuan, respectively, with corresponding EPS of 2.48, 2.76, and 3.09 yuan [8][9] - The current stock price corresponds to a P/E ratio of 12, 11, and 10 for the years 2025-2027, indicating that the company is currently undervalued [8][9]