Core Viewpoint - The company reported a mixed performance in Q1 2025, with revenue growth but a significant decline in net profit due to high base effects from the previous year [1][2]. Financial Performance - The company achieved revenue of 2.823 billion yuan, representing a year-over-year increase of 2.5% [1][2]. - The gross profit margin was 10.28%, up by 1.75 percentage points year-over-year [2]. - The net profit attributable to shareholders was 6.2707 million yuan, down 75.3% year-over-year, primarily due to a high profit base from asset sales in the previous year [2]. - The non-GAAP net profit was 22.6018 million yuan, showing a significant year-over-year increase of 141.26% [2]. Business Segments - The second-hand housing market showed positive trends, with significant increases in transaction volumes in key cities: Beijing (43,700 units, +31.3%), Shanghai (58,300 units, +45.3%), and Hangzhou (23,600 units, +46.8%) [1]. - The total housing transaction value (GTV) reached 68.11 billion yuan, a year-over-year increase of 33.0%, with contributions from brokerage (56.79 billion yuan, +35.2%), asset management (3.62 billion yuan, +0.6%), and new housing (7.70 billion yuan, +37.5%) [1]. Asset Management and Risk Management - As of the end of Q1 2025, the company managed 310,000 units in its asset management business, an increase of 7,000 units since the beginning of the year [3]. - Accounts receivable from new housing decreased to 437 million yuan from 504 million yuan at the beginning of the year, indicating reduced operational risk [3]. - The sales expense ratio improved to 17.75%, down from 20.65% in Q1 2024, reflecting effective cost control measures [3]. Future Outlook - The company anticipates a positive outlook for the existing housing market, with continued growth in non-GAAP profitability [3]. - Revenue projections for 2025-2027 are estimated at 13.69 billion, 14.99 billion, and 16.46 billion yuan, with net profits of 22 million, 25 million, and 29 million yuan respectively [3]. - Corresponding price-to-earnings ratios are expected to be 33.5x, 29.6x, and 25.7x [3].

Core Viewpoint - The company reported a strong Q1 performance with significant improvements in net profit and gross margin, driven by the turnaround of its subsidiary, Grammer, and a robust order book in its seating business [1][2]. Group 1: Q1 Financial Performance - In Q1 2025, the company achieved revenue of 5.037 billion yuan, a year-over-year decrease of 4.73% and a quarter-over-quarter decrease of 5.84% [1]. - The net profit attributable to shareholders was 104 million yuan, showing a year-over-year increase of 447.56% and a quarter-over-quarter increase of 399.56% [1]. - The non-recurring net profit was 88.5417 million yuan, reflecting a year-over-year increase of 454.08% [1]. - The net profit margin improved to 2.09%, marking a significant turnaround [1]. Group 2: Business Developments - The company launched an employee stock ownership plan aimed at incentivizing key personnel in the seating division, with performance targets set for revenue and net profit over two years [2]. - The first phase of the plan has a target of 4-5 billion yuan in revenue and 0.8-1.5 billion yuan in net profit, while the second phase aims for 7-10 billion yuan in revenue and 4-5 billion yuan in net profit [2]. - Following the strategic restructuring of Grammer, the company is positioned for improved profitability and operational efficiency [2]. Group 3: Profit Forecast and Valuation - The company maintains its previous revenue and net profit forecasts for 2025-2027, projecting revenues of 23.5 billion yuan, 26.7 billion yuan, and 32.7 billion yuan, with net profits of 660 million yuan, 990 million yuan, and 1.36 billion yuan respectively [3]. - A valuation premium of 30% is applied due to the expected rapid growth in net profit, leading to a target price of 17.87 yuan based on a 35x PE ratio for 2025 [3].

Investment Rating - The report maintains a "Buy" rating for the company [1]. Core Insights - The company's revenue for Q1 2025 was 557 billion yuan, a year-on-year decrease of 3.6%, while net profit attributable to shareholders was 238 billion yuan, down 2.2% year-on-year [4][6]. - The non-performing loan (NPL) ratio slightly increased by 1 basis point to 1.08%, and the provision coverage ratio decreased by 4.4 percentage points to 233% [4][10]. - The report highlights that net interest income continues to show stable growth, with a year-on-year increase of 1.3% in Q1 2025, contributing 0.8 percentage points to revenue growth [6][10]. Financial Data and Profit Forecast - Total revenue is projected to be 212,493.02 million yuan in 2025, with a year-on-year growth rate of 0.13% [5]. - The net profit attributable to shareholders is expected to reach 78,532.42 million yuan in 2025, reflecting a year-on-year growth of 1.72% [5]. - The report forecasts a steady increase in net profit growth rates for 2025-2027, with expected growth rates of 1.7%, 4.8%, and 5.9% respectively [10]. Loan and Deposit Performance - The company's total loans increased by 4.8% year-on-year in Q1 2025, with new corporate loans exceeding 150 billion yuan, particularly in technology and green sectors [6][9]. - Total deposits reached 5,627.965 billion yuan, marking a year-on-year increase of 10.3% [11]. Key Ratios - The report indicates a net interest margin (NIM) of 1.59% for Q1 2025, a decrease of 2 basis points year-on-year but an increase of 6 basis points quarter-on-quarter [10]. - The cost-to-income ratio improved to 24.22%, a decrease of 15.3 percentage points year-on-year [11].

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company reported a revenue of 56.793 billion yuan in 2024, a year-on-year decrease of 20.5%, and a net profit attributable to shareholders of 1.95 billion yuan, down 11.95% year-on-year. The first quarter of 2025 saw a revenue of 17.52 billion yuan, a decline of 31.64%, and a net profit of 613 million yuan, down 23.55% year-on-year, primarily due to the sustained rise in gold prices affecting gold jewelry consumption [7] - The gross margin slightly increased, indicating an improvement in profitability. The gross margin for 2024 was 8.93%, up 0.63 percentage points year-on-year, with specific categories like jewelry, gold, and crafts showing respective increases in gross margin of 0.32, 0.92, and 3.06 percentage points [7] - The company is experiencing pressure on core categories, but there is growth in overseas sales. In 2024, jewelry revenue was 46.908 billion yuan (down 19.31%), while overseas sales revenue reached 5.76 billion yuan, an increase of 12.83% [7] - The company is actively expanding its market presence despite lower-than-expected demand for gold jewelry. As of the end of Q1 2025, the company had a total of 5,541 marketing outlets, including 188 direct stores [7] - The company anticipates a potential turning point in performance in the second half of 2025 due to a low base effect. The brand is characterized by strong cash flow and high barriers to entry, making its current valuation attractive [7] Financial Summary - The total revenue forecast for 2024 is 56.793 billion yuan, with a projected decline of 20.50% year-on-year. The net profit attributable to shareholders is expected to be 1.95 billion yuan, down 11.95% year-on-year [1][8] - The earnings per share (EPS) for 2024 is projected at 3.73 yuan, with a price-to-earnings (P/E) ratio of 13.06 based on the latest diluted shares [1][8] - The company’s net profit for 2025 is revised down to 1.643 billion yuan, reflecting a year-on-year decrease of 15.73%, with a projected P/E ratio of 15.50 [1][8]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company reported a revenue of 56.793 billion yuan in 2024, a decrease of 20.5% year-on-year, and a net profit of 1.95 billion yuan, down 11.95% year-on-year. The first quarter of 2025 saw a revenue of 17.52 billion yuan, a decline of 31.64% year-on-year, and a net profit of 613 million yuan, down 23.55% year-on-year, primarily due to the sustained rise in gold prices affecting gold and jewelry consumption [7] - The gross margin slightly increased, indicating an improvement in profitability. The gross margin for 2024 was 8.93%, up 0.63 percentage points year-on-year, with specific categories like jewelry, gold, and crafts showing respective increases in gross margin of 0.32, 0.92, and 3.06 percentage points [7] - The company is actively expanding its market presence despite lower-than-expected demand for gold and jewelry. As of the end of Q1 2025, the company had a total of 5,541 marketing outlets, including 188 direct stores [7] Summary by Sections Financial Performance - In 2024, the company’s total revenue was 56.793 billion yuan, with a year-on-year decline of 20.5%. The net profit attributable to shareholders was 1.95 billion yuan, down 11.95% year-on-year. For Q1 2025, revenue was 17.52 billion yuan, a decrease of 31.64% year-on-year, and net profit was 613 million yuan, down 23.55% year-on-year [7] - The gross margin for 2024 was 8.93%, reflecting a slight increase, while the first quarter of 2025 showed a gross margin of 9.06% [7] Revenue Breakdown - In 2024, jewelry sales accounted for 46.908 billion yuan, down 19.31% year-on-year, while gold trading revenue was 9.381 billion yuan, down 26.42% year-on-year. The company also reported a stable growth in pen sales, which reached 2.269 billion yuan, up 1.09% year-on-year [7] - Domestic sales in 2024 totaled 56.011 billion yuan, down 20.80% year-on-year, while overseas sales increased by 12.83% to 5.760 billion yuan [7] Market Strategy - The company is enhancing its market expansion efforts by promoting themed stores and upgrading retail store images. The total number of marketing outlets reached 5,541, with a net increase of one direct store and a net decrease of 288 franchise stores compared to the end of 2024 [7] - The report anticipates a potential turning point in performance in the second half of 2025, driven by a low base effect, despite the short-term suppression of consumer demand due to rising gold prices [7]

Core Insights - The company reported a total revenue of 3.573 billion and a net profit attributable to shareholders of 252 million for 2024, reflecting a year-on-year decline of 7% and 44% respectively [1] - The company experienced a revenue increase of 15% in Q4 2024 but a significant drop in net profit by 32% [2] - For Q1 2025, the company anticipates a revenue of 859 million, with a net profit increase of 38% year-on-year [1][3] Revenue Breakdown - The revenue from the engraving machine and water cooling heat dissipation business faced pressure, leading to a 7% decline in total revenue for 2024 [2] - Revenue from smart control components, innovative consumer electronics, automotive electronics, and health environment products showed varied performance, with declines of 14%, 2%, and 53% respectively, while automotive electronics grew by 19% [2] - The innovative consumer electronics segment is expected to see a significant decline in engraving machine revenue, while the e-bike segment is projected to grow [2] Profitability Analysis - The net profit margin and the net profit margin excluding non-recurring items decreased by 4.6 and 3.4 percentage points year-on-year respectively [2] - The company’s expenses in sales, management, R&D, and finance increased year-on-year, with management expenses rising due to the absence of a previous year's stock incentive reversal [2] Future Outlook - The company is expected to see a recovery in engraving machine business and stable growth in e-bike and automotive electronics in 2025 [3] - The company’s global production capacity and strong R&D capabilities are expected to enhance its competitive advantage [4] - The company has announced an incentive plan with targets for 2025 revenue growth of 25% to 50%, primarily driven by the e-cigarette and automotive electronics segments [4]

Investment Rating - The investment rating for the company is "Buy" and is maintained [7] Core Views - The company is expected to reach a turning point in performance, with an anticipated gradual increase in electronic cigarette orders [4] - For 2024, the company is projected to achieve total revenue of 3.573 billion yuan, a year-on-year decrease of 7%, and a net profit attributable to shareholders of 252 million yuan, down 44% year-on-year [2][4] - The fourth quarter of 2024 is expected to show a revenue increase of 15% year-on-year, while the first quarter of 2025 is projected to see a revenue increase of 12% year-on-year [2][4] Financial Performance Summary - In 2024, the company’s revenue is expected to be 3.573 billion yuan, with a net profit of 252 million yuan and a net profit excluding non-recurring items of 238 million yuan, reflecting year-on-year declines of 7%, 44%, and 38% respectively [2][4] - For Q4 2024, the expected revenue is 1.034 billion yuan, with a net profit of 80 million yuan and a net profit excluding non-recurring items of 94 million yuan, showing year-on-year changes of +15%, -32%, and -8% respectively [2][4] - In Q1 2025, the expected revenue is 859 million yuan, with a net profit of 77 million yuan and a net profit excluding non-recurring items of 74 million yuan, reflecting year-on-year increases of +12%, +38%, and +71% respectively [2][4] Business Segment Analysis - The company’s revenue from the intelligent control components and innovative consumer electronics is expected to decline by 14% and 2% respectively in 2024, while automotive electronics are projected to grow by 19% [4] - The electronic cigarette business is anticipated to improve gradually, with orders expected to increase as labor issues in the Malaysian base are resolved [4] - The automotive electronics segment is expected to maintain stable growth, contributing positively to overall revenue [4] Future Outlook - The company aims for a revenue increase of 25% to 50% in 2025, targeting a revenue range of 4.5 to 5.4 billion yuan, primarily driven by the electronic cigarette and automotive electronics segments [4] - The company is expected to achieve net profits of 500 million yuan, 690 million yuan, and 870 million yuan from 2025 to 2027, with corresponding price-to-earnings ratios of 24, 18, and 14 times [4]

Investment Rating - The report upgrades the investment rating of the company to "Buy" based on the anticipated performance turnaround [11]. Core Views - The company experienced a revenue decline in 2024 due to structural adjustments, but a performance inflection point is expected in Q1 2025 [2]. - The revenue for 2024 was 2.504 billion yuan, down 13.08% year-on-year, with a net profit of 404.4 million yuan, down 25.87% year-on-year [2]. - In Q1 2025, the company reported a revenue of 620 million yuan, up 14.8% year-on-year, and a net profit of 122 million yuan, up 26.5% year-on-year [3]. Revenue Structure and Performance - In 2024, the revenue breakdown by industry showed significant declines in the lithium battery and photovoltaic sectors, while the 3C and automotive sectors showed growth [2]. - The lithium battery sector generated 463 million yuan, down 48.03%, while the automotive sector generated 251 million yuan, up 29.94% [2]. - The company's gross margin decreased to 35.26% in 2024, down 2.69 percentage points year-on-year, but improved to 38.10% in Q1 2025, up 3.07 percentage points year-on-year [4]. Financial Metrics - The company’s operating cash flow improved significantly, reaching 729 million yuan in 2024, up 93.56% year-on-year [5]. - The net profit margin for 2024 was 16.15%, down 2.79 percentage points year-on-year, but increased to 19.64% in Q1 2025 [4]. - The company’s total revenue is projected to grow to 3.019 billion yuan in 2025, with a net profit of 552.8 million yuan, reflecting a recovery trend [11]. Business Development - The company is deepening its FA (Factory Automation) business with a comprehensive product system covering 196 categories and 4437 subcategories [6]. - The FB (Flexible Business) segment is expected to enter a rapid growth phase, leveraging smart systems to meet market demands [6].

Investment Rating - The report upgrades the investment rating of the company to "Buy" based on the anticipated performance recovery and earnings inflection point [11]. Core Views - The company experienced a revenue decline in 2024 due to structural adjustments, but a performance turnaround is expected in Q1 2025 [2][3]. - The company is focusing on profit-oriented strategies, moving away from low-margin orders in the renewable energy sector [4]. - Significant improvements in cash flow from operating activities were noted, indicating better collection and management of receivables [5]. Revenue and Profit Analysis - In 2024, the company reported total revenue of 2.504 billion yuan, a year-on-year decrease of 13.08%, and a net profit attributable to shareholders of 404.4 million yuan, down 25.87% [2]. - For Q1 2025, the company achieved revenue of 620 million yuan, a year-on-year increase of 14.8%, with a net profit of 122 million yuan, up 26.5% [3]. Margin and Cost Structure - The gross margin for 2024 was 35.26%, a decrease of 2.69 percentage points year-on-year, while Q1 2025 saw a gross margin of 38.10%, an increase of 3.07 percentage points [4]. - The company’s net profit margin for 2024 was 16.15%, down 2.79 percentage points, but improved to 19.64% in Q1 2025 [4]. Industry Performance - The revenue breakdown by industry in 2024 showed significant declines in the lithium battery and photovoltaic sectors, while the 3C and automotive sectors experienced growth [2]. - The company is expanding its FA (Factory Automation) and FB (Flexible Business) operations, with a focus on product development and addressing long-tail orders [6]. Financial Forecasts - The company’s projected net profit for 2025 is 553 million yuan, with further growth expected in subsequent years, reaching 791 million yuan by 2027 [11]. - The current price-to-earnings ratio is projected to decrease from 31.76 in 2024 to 16.24 by 2027, indicating potential value appreciation [12].