Core Viewpoint - The report indicates that 瑞尔特 (002790) is facing performance pressure but is expected to see growth in its self-owned brand segment in the future, maintaining a "buy" rating for the stock [1]. Financial Performance - In Q1 2025, the company reported revenue of 410 million yuan, a year-on-year decrease of 21.2%, and a net profit attributable to shareholders of 20 million yuan, down 63.3% year-on-year. The net profit excluding non-recurring items was also 20 million yuan, reflecting a 67.0% decline year-on-year [1][2]. Operational Analysis - The domestic OEM business is under pressure due to weak overall industry demand and an increase in clients' self-production ratios, leading to a significant decline in revenue for Q1 2025. The self-owned brand business is also expected to face substantial pressure, with a double-digit revenue decline anticipated due to the staggered rollout of national subsidies and intense low-price competition in the market [2]. - The gross margin for Q1 2025 decreased by 5.6 percentage points to 24.7%, attributed to intensified industry competition and a higher proportion of low-end product sales. The sales, management, R&D, and financial expense ratios were 11.0%, 5.2%, 5.5%, and -1.1% respectively, showing a mixed trend [2]. Market Outlook - Domestic demand is expected to stabilize, with improvements in the self-owned brand segment anticipated as national subsidies are rolled out and real estate sales gradually recover. The company is well-positioned to benefit from the mandatory CCC certification for electronic toilets starting July 1, 2025, which may optimize the industry landscape [3]. - The overseas business is expected to remain stable despite trade policy disruptions, with signs of easing trade tensions [3]. Earnings Forecast and Valuation - The company’s earnings per share (EPS) are projected to be 0.49 yuan, 0.55 yuan, and 0.62 yuan for 2025, 2026, and 2027 respectively. The current stock price corresponds to price-to-earnings (PE) ratios of 15, 13, and 12 times for the respective years, maintaining a "buy" rating [4].