Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company has shown strong performance in foreign trade, with a notable increase in revenue and net profit in Q1 2025 compared to the previous year [5] - The company is focusing on its core sofa category and expanding its custom business, with significant growth in retail sales for functional sofas and mattresses [6][9] - The company is implementing a "1+N+X" channel strategy to enhance its market presence and has established stable partnerships with key clients in the foreign trade sector [7] Financial Performance Summary - In 2024, the company achieved revenue of 18.48 billion yuan and a net profit of 1.42 billion yuan, representing a year-on-year decrease of 3.8% and 29.4% respectively [5] - For Q1 2025, the company reported revenue of 4.91 billion yuan and a net profit of 520 million yuan, showing a year-on-year increase of 12.9% and 23.5% respectively [5] - The company's gross margin for 2024 was 32.7%, slightly down by 0.1 percentage points year-on-year, while the net profit margin was 7.7%, down by 2.8 percentage points [8] Segment Performance - Revenue by product category in 2024: sofas (10.20 billion yuan, +9.1%), beds (3.25 billion yuan, -20.8%), integrated products (2.44 billion yuan, -19.5%), and custom products (990 million yuan, +12.7%) [6] - Domestic sales revenue was 9.36 billion yuan, down 14.4%, while foreign sales revenue was 8.37 billion yuan, up 11.3% [7] Strategic Outlook - The company plans to deepen its domestic "one body, two wings" strategy and global expansion in foreign trade, focusing on core categories like functional sofas and bedroom mattresses [9][10] - The company aims to enhance its marketing system and expand its manufacturing base globally, particularly in non-US markets [9]