Investment Rating - The investment rating for the company is "Buy" with a target price set for the next six months [6][16]. Core Views - The company has shown a strong performance in external sales, with a notable increase in revenue and profit levels. In Q1 2025, the company achieved a revenue of 24.838 billion yuan, a year-on-year increase of 5.76%, and a net profit attributable to shareholders of 1.127 billion yuan, up 14.89% year-on-year [1][4]. - The revenue structure has shifted, impacting the gross margin, which was 21.41% in Q1 2025, a slight decrease of 0.22 percentage points year-on-year. However, the net profit margin improved to 6.58%, an increase of 0.03 percentage points year-on-year [3][4]. Revenue Performance - Domestic sales showed stable growth, with air conditioning sales online and offline down by 3% and up by 20% respectively, while refrigerator sales increased by 1% online and 17% offline. Washing machine sales saw significant growth, with online and offline sales up by 64% and 32% respectively [2]. - External sales experienced rapid growth, with air conditioning external sales up by 32% year-on-year and refrigerator external sales up by 22% in the first two months of 2025 [2]. Financial Metrics - The company’s operating cash flow faced pressure, with a net cash flow from operating activities of 0.65 billion yuan in Q1 2025, a decrease of 58.3% year-on-year. The cash paid for goods and services was 14.344 billion yuan, an increase of 14.43% year-on-year [4]. - The company maintains a stable expense ratio, with sales, management, R&D, and financial expense ratios at 9.55%, 2.39%, 3.32%, and 0.02% respectively in Q1 2025 [3]. Financial Forecast - The company is projected to achieve net profits of 3.85 billion yuan, 4.36 billion yuan, and 4.89 billion yuan for the years 2025, 2026, and 2027 respectively, with corresponding P/E ratios of 9.8x, 8.7x, and 7.7x [4][5].