HEILAN HOME(SH:600398) GUOTAI HAITONG SECURITIES·2026-03-30 00:50Investment Rating - The investment rating for the company is "Accumulate" with a target price of 8.26 CNY [2][11]. Core Insights - The main brand performance is stable, with new business segments such as FCC and urban outlets continuing to expand. The company is also accelerating its overseas layout. For 2026, the company plans to enhance its e-commerce channels, and new business formats are expected to turn profitable, leading to steady growth in performance [3][11]. Financial Summary - Total revenue is projected to grow from 20,957 million CNY in 2024 to 27,680 million CNY in 2028, reflecting a compound annual growth rate (CAGR) of approximately 8.2% [5]. - Net profit attributable to the parent company is expected to increase from 2,159 million CNY in 2024 to 2,834 million CNY in 2028, with a notable recovery in growth rates from -26.9% in 2024 to 11.1% in 2028 [5]. - Earnings per share (EPS) is forecasted to rise from 0.45 CNY in 2024 to 0.59 CNY in 2028 [5]. Business Performance - In Q4 2025, the main brand's revenue reached 6.03 billion CNY, a year-on-year increase of 5.8%, with a net profit of 300 million CNY, up 21.0% year-on-year [11]. - The company has expanded its FCC business, with 723 authorized adidas FCC stores by the end of 2025, and is actively promoting its urban outlet strategy, increasing the number of stores to 60 [11]. - Overseas revenue reached 453 million CNY in 2025, marking a 27.7% increase, with a total of 147 overseas stores established [11]. Future Outlook - The company is expected to continue its strong performance in e-commerce, with significant growth anticipated in the first quarter of 2026. The new business segments are projected to break even, contributing positively to overall performance [11]. - The dividend payout ratio for 2025 was 91%, and a high dividend yield of 7% is expected for 2026 [11].