Investment Rating - The industry investment rating is "Hold" [1] Core Views - The report highlights a significant divergence in performance among companies as they release their semi-annual earnings forecasts, with some companies showing remarkable growth while others face declines [3][19] - Key drivers for growth include market expansion, product upgrades, operational efficiency improvements, and effective cost control [21][24] Summary by Sections Semi-Annual Earnings Forecasts - Jiangxin Home reported a net profit of 410-460 million yuan for H1 2025, representing a year-on-year growth of 43.70%-61.23% [21] - Aorijin expects a net profit of 850-960 million yuan for H1 2025, with a growth rate of 55%-75% [21] - Zhongshun Jierou anticipates a net profit of 140-160 million yuan, reflecting a growth of 59.85%-82.68% [24] - Saifutian forecasts a turnaround with a net profit of 2.55-3.80 million yuan, compared to a loss of 12.49 million yuan in the previous year [23] Market Performance - From July 14 to July 18, 2025, the Shanghai Composite Index rose by 0.69%, while the ShenZhen Component Index increased by 2.04% [25] - The light industry manufacturing index rose by 0.08%, ranking 21st among 31 sectors, while the textile and apparel index increased by 0.24%, ranking 19th [25] Key Data Tracking - Real estate data shows a significant decline in property transactions, with a 35.98% decrease in the transaction area of commercial housing in major cities [34] - The price of cotton in China is reported at 15,508 yuan per ton, with a week-on-week increase of 1.59% [12] - The report indicates a notable increase in furniture sales, with June 2025 sales reaching 20.77 billion yuan, a year-on-year increase of 28.7% [9]

Investment Rating - The investment rating for the company is "Buy" [1][7] Core Views - The company has reported a revenue of 14.30 billion yuan for 2024, a year-on-year decrease of 6.18%, with a net profit attributable to shareholders of 690 million yuan, down 14.39% year-on-year [2] - The company plans to distribute a cash dividend of 6.8 billion yuan (before tax) for every 10 shares, resulting in a total dividend payout of 8.08 billion yuan for the year, achieving a dividend payout ratio of 117% and a dividend yield of approximately 8% [2] - The company is actively responding to short-term revenue pressures by organizing promotional events and exploring new business models, including a full industry chain platform for home improvement and smart home services [3][4] Summary by Sections Financial Performance - In 2024, the company's core business revenue from leasing and services was 12.47 billion yuan, a decrease of 4.52% year-on-year, accounting for 87.2% of total revenue [3] - The gross profit margin for 2024 decreased by 2.94 percentage points to 67.24%, primarily due to revenue pressure and increased depreciation costs from new projects [5] - The company expects revenues for 2025-2027 to be 14.85 billion yuan, 15.70 billion yuan, and 16.49 billion yuan respectively, with earnings per share (EPS) projected at 0.96 yuan, 1.02 yuan, and 1.09 yuan [6][9] Market Position and Strategy - The company is recognized as a leading home goods retailer in Southwest China, with a strong competitive position and a focus on long-term growth driven by urbanization and rising income levels [6][4] - The company is enhancing its operational stability by leveraging its property cost advantages and high penetration in the Chengdu market [6] Future Outlook - The company is expected to benefit from a recovery in the home goods market, with ongoing efforts to attract new business through the Tianfu project and other initiatives [4] - The company is exploring the feasibility of coexisting business models of leasing, joint operations, and self-management starting in 2025 [3]