DEHUA TB(SZ:002043) Guotou Securities·2025-10-29 02:06Investment Rating - The investment rating for the company is "Buy-A" with a 12-month target price of 15.45 CNY, compared to the current stock price of 12.28 CNY [4]. Core Insights - The company reported a revenue of 6.319 billion CNY for the first three quarters of 2025, a year-on-year decrease of 2.25%. However, the net profit attributable to shareholders increased by 30.44% to 629 million CNY, primarily due to gains from the fair value changes of its investment in Hanhai Group [2][3]. - The company experienced a significant improvement in operating cash flow, with a net inflow of 473 million CNY for the first three quarters, representing a year-on-year increase of 12.67% [3]. Summary by Sections Revenue and Profitability - In Q3 2025, the company achieved a revenue of 2.684 billion CNY, marking a year-on-year growth of 5.03%. The net profit for the same quarter was 361 million CNY, up 51.67% year-on-year, while the non-recurring net profit dropped by 50.61% to 94.92 million CNY [1][2]. Financial Performance - The gross profit margin for the first three quarters was 17.60%, an increase of 0.29 percentage points year-on-year. The net profit margin was 9.96%, up 2.5 percentage points year-on-year, although the non-recurring net profit margin decreased to 5.27%, down 1.33 percentage points [3]. Market Strategy - The company is focusing on expanding its market presence in rural areas and furniture factories, enhancing its channel operations. It aims to upgrade traditional retail channels and strengthen partnerships with local custom furniture manufacturers [4][9]. Future Projections - The company is expected to achieve revenues of 9.283 billion CNY, 10.056 billion CNY, and 10.913 billion CNY for 2025, 2026, and 2027, respectively, with corresponding net profits of 772 million CNY, 857 million CNY, and 1.034 billion CNY [9].