Investment Rating - The report maintains a "Buy" rating for the company [7] Core Insights - The company reported a revenue of 1.73 billion in Q1 2025, showing a year-on-year decrease of 1.76%, while the net profit attributable to the parent company was 71 million, down 4.02% [1] - The retail segment demonstrated strong e-commerce growth, with online retail revenue increasing by 29.1% to 390 million, while offline retail revenue decreased by 5.8% to 650 million [2] - The company is focusing on AI sleep technology, collaborating with Tsinghua University to enhance its product offerings [4] - Financial metrics indicate a gross margin of 33.44%, with an increase in operating expenses [5] Summary by Sections Revenue and Profitability - In Q1 2025, the company achieved a revenue of 1.73 billion, with a net profit of 71 million and a non-recurring net profit of 60 million, reflecting a decline of 4.02% and 19.31% respectively compared to the previous year [1] Retail Segment Performance - The retail business generated 1.08 billion in revenue, with online sales growing by 29.1% to 390 million, while offline sales fell by 5.8% to 650 million [2] Manufacturing and Overseas Operations - The OEM business reported a revenue of 480 million, with international sales at 360 million, showing a growth of 2.8% [3] - The cross-border e-commerce segment saw a revenue decline of 22.9% to 60 million due to strategic adjustments [3] Product Categories - Mattress revenue reached 1.13 billion, up 10% year-on-year, with proprietary brand mattresses contributing 770 million, an 18% increase [4] Financial Metrics - The gross margin stood at 33.44%, with an increase in operating expenses, including a rise in sales and financial expense ratios [5] - The company is projected to achieve revenues of 9.46 billion, 10.26 billion, and 11.15 billion for 2025, 2026, and 2027 respectively, with net profits expected to grow significantly [6]

Investment Rating - The investment rating for the company is "Buy" [1] Core Views - The company demonstrates operational resilience and is actively expanding its overseas business and integrating AI technology [3] - The company is a leading player in the domestic mattress industry, benefiting from increasing consumer acceptance of mid-to-high-end soft bed products [5] - The company plans to distribute a cash dividend of 10.0 yuan per 10 shares, totaling an expected cash dividend distribution of 394 million yuan [2] Financial Performance Summary - In 2024, the company achieved revenue of 5.603 billion yuan, a year-on-year increase of 0.43%, and a net profit of 767 million yuan, a year-on-year decrease of 4.36% [2] - The company's cash flow from operating activities was 1.091 billion yuan, a year-on-year decrease of 43.63% [2] - The gross margin for 2024 was 50.08%, a decrease of 0.21 percentage points year-on-year, while the net margin was 13.70%, a decrease of 0.69 percentage points year-on-year [4] Product and Market Analysis - The company's main business in furniture manufacturing generated revenue of 5.522 billion yuan in 2024, contributing 98.56% to total revenue [3] - The mattress segment achieved revenue of 2.679 billion yuan, a year-on-year increase of 3.78%, while the bed frame segment saw a slight decrease in revenue [3] - The company reported a 61.07% increase in overseas revenue, reaching 155 million yuan, indicating successful overseas market expansion [3] Future Outlook - The company has adjusted its revenue forecasts for 2025-2027 to 6.017 billion yuan, 6.436 billion yuan, and 7.011 billion yuan respectively [5] - Earnings per share (EPS) estimates for 2025-2027 are adjusted to 1.99 yuan, 2.15 yuan, and 2.30 yuan respectively [5] - The company is expected to maintain a stable gross margin around 51.1% in 2025 [7]

Investment Rating - The investment rating for the company is "Accumulate" [7] Core Views - The company is expected to benefit from the growing demand for smart sleep products, particularly with the launch of the AI smart mattress T11PRO, which has already surpassed sales of 100 million yuan by December 2024 [2][3] - The e-commerce channel has shown resilience, with revenue reaching 1.093 billion yuan, a year-on-year increase of 6%, contributing to 19.51% of total revenue [2] - The company is optimizing its offline channels by upgrading existing stores and eliminating underperforming ones, leading to a slight decline in direct sales revenue [2] - The membership community has seen significant growth, with 1.4837 million new registered members in the year, doubling from the previous year, enhancing customer loyalty [2] - The company is accelerating its brand expansion overseas, completing the acquisition of Maxcoil's Singapore sales headquarters and production assets [3] Financial Performance Summary - In 2024, the company achieved revenue of 5.6 billion yuan (up 0.43% year-on-year) and a net profit of 767 million yuan (down 4.36%) [1] - For Q4 2024, the company reported a revenue of 1.725 billion yuan (down 2.72%) and a net profit of 245 million yuan (down 13.7%) [1] - In Q1 2025, revenue was 1.121 billion yuan (down 6.66%) with a net profit of 118 million yuan (down 16.43%) [1] - The company is projected to achieve revenues of 6.002 billion yuan, 6.434 billion yuan, and 6.946 billion yuan for 2025, 2026, and 2027 respectively, with corresponding net profits of 803 million yuan, 876 million yuan, and 956 million yuan [5][11]