OPPEIN(SH:603833) Changjiang Securities·2025-11-04 09:44Investment Rating - The investment rating for the company is "Buy" and is maintained [8] Core Views - In the first three quarters of 2025, the company achieved revenue, net profit attributable to the parent, and net profit excluding non-recurring items of 13.214 billion, 1.832 billion, and 1.712 billion yuan, respectively, representing year-on-year changes of -5%, -10%, and -3%. In Q3 2025, the figures were 4.973 billion, 814 million, and 769 million yuan, with year-on-year changes of -6%, -22%, and -22% [2][6] - The slight decline in Q3 revenue and the decrease in profit margins are attributed to weak demand and a high base from the previous year. The net profit margin for Q3 remained at 16.4% and 15.5% for net profit excluding non-recurring items [12] - The company is actively optimizing its channel structure and transitioning to a home furnishing model to enhance operational resilience and competitiveness. In the first three quarters of 2025, the number of stores decreased by 333, with a significant focus on empowering distributors to transition to the home furnishing model [12] - The company aims to reduce costs and improve efficiency to empower its channels, with a focus on enhancing the quality of net profit. The strategy includes a "land distribution" mechanism and deepening operational capabilities in home furnishing [12] - The industry demand is still under pressure, but the company possesses medium to long-term competitiveness, with strong cash flow and a commitment to dividends. The projected net profit attributable to the parent for 2025-2027 is 2.41 billion, 2.57 billion, and 2.84 billion yuan, corresponding to P/E ratios of 14, 13, and 11 times [12] Financial Summary - For Q3 2025, the revenue by product categories showed a decline: cabinets and wardrobes down by 3%, sanitary ware down by 8%, wooden doors down by 3%, while other categories increased by 1% and overall revenue decreased by 6% year-on-year [12] - The gross profit margin for Q3 decreased by 1.6 percentage points year-on-year but increased by 1.1 percentage points quarter-on-quarter. The sales, management, and R&D expense ratios collectively increased by 0.9 percentage points due to a decline in revenue [12] - The company has announced a minimum annual dividend of 1.5 billion yuan for 2024-2026, with a current dividend yield of approximately 4.6% [12]