HEILAN HOME(SH:600398) GF SECURITIES·2024-05-13 03:32Investment Rating - The report maintains a "Buy" rating for the company, with a current price of 9.35 CNY and a reasonable value of 10.72 CNY [3]. Core Views - The company has successfully opened 32 exclusive stores in collaboration with Adidas FCC, indicating strong growth potential in the sports retail sector. The stores are strategically located in various provinces, including Anhui, Hebei, and Henan [2]. - The company is expected to maintain rapid growth in future performance, benefiting from rational consumer behavior and an increase in online business revenue. The company plans to optimize its offline store layout and expand into Southeast Asia [2]. - Earnings per share (EPS) forecasts for 2024, 2025, and 2026 are projected to be 0.71, 0.83, and 0.94 CNY, respectively. The company is assigned a 15x price-to-earnings (PE) ratio for 2024, leading to a target price of 10.72 CNY per share [2]. Financial Summary - The company's revenue is projected to grow from 21,528 million CNY in 2023 to 30,754 million CNY by 2026, reflecting a compound annual growth rate (CAGR) of approximately 12.7% [7]. - The net profit is expected to increase from 2,952 million CNY in 2023 to 4,523 million CNY in 2026, with a growth rate of 14.1% [7]. - The company's EPS is forecasted to rise from 0.67 CNY in 2023 to 0.94 CNY in 2026, indicating a positive trend in profitability [7].