东兴证券东兴晨报

Group 1 - The core viewpoint of the report indicates that the company achieved a business volume of 7.17 billion pieces in Q1 2024, representing a year-on-year growth of 13.9%, while the market share decreased from 21.2% to 19.3% compared to the same period last year. The adjusted net profit was 2.224 billion yuan, an increase of 15.8% year-on-year [2][3] - The report suggests that the decline in market share is temporary, as intense price competition in the low-price segment is unsustainable for many companies. It is expected that if the "price for volume" model weakens in the second half of the year, competition will ease, allowing the company's market share to gradually recover [2][3] - The company maintains a balanced strategy of improving service quality, business scale, and profitability. It has built a strong brand recognition and customer satisfaction, which allows it to avoid falling into the industry's cost competition trap [2][3] Group 2 - The company is expected to achieve net profits of 10.2 billion, 12.11 billion, and 13.86 billion yuan from 2024 to 2026, with corresponding PE ratios of 13.9X, 11.7X, and 10.2X. The company’s leading position in the industry is solid, and its strong profitability provides a significant margin of safety [3] - The report highlights that the home textile business remains robust, accounting for 80% of the company's revenue, while the furniture segment has temporarily dragged down overall profitability. The home textile business's profit margin is expected to remain strong, and recovery in overseas furniture demand is anticipated [4][11] - The company plans to maintain a dividend of no less than 0.2 yuan per share in the first half of 2024, ensuring a total dividend of over 0.6 yuan per share for the year [11]