QM HOME(SH:603818) Huachuang Securities·2025-11-21 04:05Investment Rating - The report maintains a "Strong Buy" rating for Qu Mei Home (603818) [2][8] Core Views - The Q3 performance met expectations, with revenue and net profit showing signs of recovery despite previous losses. The company is actively restructuring its debt and exploring new business opportunities [2][8] - The domestic market is under pressure, but the overseas business is showing steady recovery, particularly with the Ekornes brand, which is expected to continue its growth trend as holiday promotions approach [8][9] - The company is focusing on cost optimization and innovation in its core business while expanding into new segments such as smart home products and AI technology [8][9] Financial Summary - For the first three quarters of 2025, the company reported total revenue of 2.55 billion CNY, a decrease of 3.1% year-on-year, with a net loss of 67 million CNY [2][4] - The projected total revenue for 2025 is estimated at 3.449 billion CNY, with a slight decline of 2.9% compared to 2024. However, net profit is expected to improve significantly in the following years, reaching 116 million CNY by 2026 [4][9] - The company's gross margin for Q3 was 35.8%, with an increase in operating expenses leading to a net profit margin of -2.4% [8][9] Market Performance - The current stock price is 4.10 CNY, with a target price set at 5.07 CNY, indicating a potential upside [4][8] - The company has a total market capitalization of 28.15 billion CNY and a debt-to-equity ratio of 65.68% [5][9]