Investment Rating - The report maintains a "Buy" rating for the company [12] Core Views - The company is expected to sustain its growth momentum due to its competitive supply chain advantages and a multi-channel, multi-category strategy, which is likely to enhance profitability [2][12] - The company has achieved significant sales milestones with its differentiated konjac product, indicating strong market potential [12] - The company is expanding its overseas market presence with localized products under its own brand, "Mowon," which is expected to contribute to revenue growth [12] Financial Summary - Total revenue is projected to grow from 4,115 million RMB in 2023 to 9,694 million RMB in 2027, reflecting a compound annual growth rate (CAGR) of 26.3% [4] - Net profit attributable to the parent company is expected to increase from 506 million RMB in 2023 to 1,264 million RMB in 2027, with a CAGR of 24.3% [4] - Earnings per share (EPS) is forecasted to rise from 1.85 RMB in 2023 to 4.63 RMB in 2027 [4] Market Position and Strategy - The company has established a comprehensive multi-channel matrix in the domestic market, enhancing brand strength for its "Big Demon King" konjac products [12] - The company is focusing on optimizing its product mix and channel structure, which is anticipated to improve profitability [12] - The company is leveraging its efficient organizational management and supply chain capabilities to capture market trends effectively [12]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company is expected to see a gradual recovery in revenue performance as government subsidies for home furnishings are implemented, despite facing short-term pressure on earnings in Q1 2025 [5] - The company has maintained a stable gross margin while increasing its investment in new business development, which has led to a temporary decline in net profit margin [5] - The company is actively expanding its product lines and sales channels, focusing on both online and offline markets to enhance revenue growth [6] Financial Performance Summary - In 2024, the company achieved revenue of 56.0 billion (up 0.4% year-on-year) and a net profit of 7.67 billion (down 4.4%) [5] - For Q1 2025, the company reported revenue of 11.2 billion (down 6.7%) and a net profit of 1.18 billion (down 16.4%) [5] - The gross margin for 2024 was 50.1%, with a net profit margin of 13.7% [5] - The gross margin improved to 51.8% in Q1 2025, while the net profit margin decreased to 10.5% [5] Revenue Breakdown - In 2024, the company's revenue from core products was as follows: mattresses 26.79 billion (up 3.8%), bed frames 16.65 billion (down 0.1%), sofas 4.32 billion (down 0.4%), and bedding 3.04 billion (down 7.5%) [6] - The company has over 5,400 offline stores and has achieved online sales revenue of 10.93 billion (up 6.0%) through various platforms [6] - The company is also expanding into smart products and international markets, including acquiring a 100% stake in the Singapore sales headquarters of Maxcoil [6] Financial Forecasts - The company forecasts net profits for 2025-2027 to be 7.99 billion, 8.72 billion, and 9.56 billion respectively, with corresponding EPS of 2.00, 2.18, and 2.39 [5] - The projected P/E ratios for 2025-2027 are 15.0, 13.7, and 12.5 respectively [5]