COMPANY ANNOUNCEMENT No. 207/2025 Tvis, 21 May 2025 Interim report Q1 2025 (January 1 - March 31) (All figures in brackets refer to the corresponding period in 2024) Organic sales growth driven by a recovering B2C market. CEO Torben Paulin:“Sales in the first quarter developed in line with our expectations, with a decline in B2B project sales offset by a robust increase in B2C sales. Total sales for the quarter rose by 5% year-on-year to DKK 308 million, with an organic growth of 4%. Order intake showed p ...

Investment Rating - The report does not explicitly state an overall investment rating for the industry or specific companies covered Core Insights - The recent US-China tariff rollback is expected to benefit covered companies directly through reduced tariff costs and indirectly through lower inflation and potentially higher household cash flows [2][4] - The report anticipates that the 90-day window for tariff negotiations may lead to faster-than-expected export growth in Q2 and Q3 as Chinese OEMs resume production for US orders [4] - The report highlights that different companies will have varying impacts from the tariff changes, with OEMs likely to maintain profitability-focused strategies while brands may adopt divergent pricing strategies [6][10] Summary by Sections Tariff Rollback Impact - The US will reduce its tariff increase on China from 145 basis points to 30 basis points, while China will lower its effective tariff rate on US imports to around 30% [1][2] - The tariff rollback is larger than previously expected, leading to revised GDP forecasts for both the US and China [2] Company-Specific Impacts - Companies like Xinbao are expected to see faster revenue growth due to their leading position in the small appliances sector, while brands like Anker, Roborock, and Ecovacs may experience limited revenue changes in the current quarter but better growth in H2 2025 [6][21] - The report revises EPS forecasts for Anker, Xinbao, Roborock, and Ecovacs upwards by 2%-9% for 2025-2027, reflecting the alleviation of demand and margin pressures [21][23] Capital Expenditure and Production Strategies - Limited changes in CAPEX plans are expected in the near term due to ongoing uncertainty regarding future tariff rates [5] - Companies are likely to continue leveraging ASEAN countries for manufacturing, depending on future US tariff rates on the region [5] Share Price and Valuation - Share prices of covered companies rebounded after initial corrections, with major white goods companies expected to be least impacted due to diversified production bases [10][11] - The report notes divergent performance across sub-sectors, with some companies like Anker facing greater downside risks despite a rebound in share prices [11][20]

This week's rally is particularly encouraging for investors who like to invest in small-cap stocks. The Russell 2000 index, widely considered to be the small-cap index, is up about 3.8% for the week. This continues the momentum that’s been building for the last month, in which the index has climbed 15.7%. Small-cap stocks are particularly sensitive to interest rates. Many of these companies rely on debt for their operations, which means, in some cases, it would be harder for companies to absorb higher tarif ...

Core Insights - Nova LifeStyle, Inc. reported a financial performance improvement in Q1 2025, with a focus on higher margin product lines contributing to revenue growth and improved gross profit margins [2][6]. Financial Performance - Net sales for Q1 2025 were $2.64 million, an 11% increase from $2.38 million in Q1 2024, driven by a 26% increase in average selling price, despite a 12% decrease in sales volume [6]. - Gross profit for Q1 2025 was $1.20 million, up from $1.02 million in Q1 2024, reflecting a gross profit margin increase to 46% from 43% in the same period [6]. - The net loss for Q1 2025 was $0.34 million, significantly reduced from a net loss of $1.46 million in Q1 2024 [6]. Market and Product Strategy - The company is focusing on developing product lines that anticipate new trends, aiming to enhance its market position amid uncertainties in the furniture industry due to tariffs [2][3]. - Sales to North America increased by 12% to $2.62 million in Q1 2025, attributed to the higher average selling price [6].

14 May 2025 | 12:43AM HKT China Consumer Pulse check: 1Q25 wrap-up: Consistent trends vs. 4Q earnings season; volatility remains in recovery path Our takeaways from companies' 1Q25 results are largely consistent with 4Q24: 1) consumption has bottomed out (1Q25 NBS retail sales growth improved to +4.6% yoy and our coverage companies reported 14% average growth in 1Q25 vs. 12%/8% in 4Q24/3Q24; Labor Day consumption growth accelerated) but we are yet to see meaningful demand rebound and companies remain pruden ...

Core Viewpoint - Investors are increasingly seeking growth stocks that demonstrate above-average growth potential, but identifying such stocks can be challenging due to inherent risks and volatility [1] Group 1: Growth Stock Identification - The Zacks Growth Style Score system aids in identifying promising growth stocks by analyzing real growth prospects beyond traditional metrics [2] - HNI is currently recommended as a strong growth stock, possessing a favorable Growth Score and a top Zacks Rank [2] Group 2: Earnings Growth - Earnings growth is a critical factor for growth investors, with double-digit growth being particularly attractive [3] - HNI has a historical EPS growth rate of 10.6%, with projected EPS growth of 14.1% this year, significantly outperforming the industry average of 2.1% [4] Group 3: Cash Flow Growth - High cash flow growth is essential for growth-oriented companies, allowing them to fund new projects without relying on external financing [5] - HNI's year-over-year cash flow growth stands at 19.1%, well above the industry average of 4.9% [5] - The company's annualized cash flow growth rate over the past 3-5 years is 6.2%, compared to an industry average of -4% [6] Group 4: Earnings Estimate Revisions - Positive trends in earnings estimate revisions correlate strongly with near-term stock price movements [7] - HNI's current-year earnings estimates have been revised upward, with the Zacks Consensus Estimate increasing by 7.1% over the past month [8] Group 5: Overall Assessment - HNI has achieved a Growth Score of B and a Zacks Rank of 2, indicating it is a potential outperformer and a solid choice for growth investors [10]

Core Viewpoint - HNI is positioned as a strong investment opportunity due to significant revisions in earnings estimates, indicating a positive earnings outlook and potential for continued stock price growth [1][2]. Earnings Estimate Revisions - Analysts have shown increasing optimism regarding HNI's earnings prospects, leading to higher earnings estimates which are expected to positively influence the stock price [2]. - The current-quarter earnings estimate is $0.84 per share, reflecting a year-over-year increase of +6.33%, with a 15.07% rise in the Zacks Consensus Estimate over the last 30 days [6]. - For the full year, HNI is projected to earn $3.49 per share, representing a +14.05% change from the previous year, with a 7.06% increase in the consensus estimate over the past month [7][8]. Zacks Rank and Performance - HNI has achieved a Zacks Rank 2 (Buy), indicating favorable estimate revisions that suggest strong future performance [9]. - Historically, stocks with Zacks Rank 1 (Strong Buy) and 2 (Buy) have significantly outperformed the S&P 500, with Zacks 1 stocks averaging a +25% annual return since 2008 [3][9]. Stock Performance - HNI shares have increased by 16.2% over the past four weeks, reflecting investor confidence in the company's earnings growth prospects [10].

Core Insights - Dorel Industries Inc. reported a first-quarter revenue of US$320.5 million, a decrease of 8.7% from US$351.1 million a year ago, with a net loss of US$25.3 million compared to a loss of US$17.6 million in the same period last year [2][35][26] - Dorel Juvenile experienced organic revenue growth of 1.5%, driven by strong performance in the Maxi-Cosi brand, while Dorel Home faced significant challenges with a 24.4% decline in revenue due to lower e-commerce sales [3][10][13] Financial Performance - The first quarter net loss was US$25.3 million or US$0.77 per diluted share, compared to a net loss of US$17.6 million or US$0.54 per diluted share a year ago [2][35] - Adjusted net loss for the quarter was US$23.6 million or US$0.72 per diluted share, compared to US$16.9 million or US$0.52 per diluted share for the same quarter last year [2][35] - Dorel Juvenile's revenue was US$215.9 million, a 1.5% increase year-over-year, while Dorel Home's revenue was US$104.6 million, a decrease of 24.4% [9][15] Segment Analysis - Dorel Juvenile's gross profit increased to US$58.8 million, with a gross margin of 27.3%, up from 26.5% the previous year [10][37] - Dorel Home reported a gross profit of US$1.3 million, with a significantly reduced gross margin of 1.2%, down from 8.5% in the prior year [13][39] - The operating loss for Dorel Home was US$11.5 million, compared to a loss of US$3.6 million in the previous year, indicating a 223.2% increase in losses [13][39] Market Conditions - The U.S. dollar's weakening against other major currencies positively impacted Dorel Juvenile's earnings [3] - Dorel Home's e-commerce sales were significantly lower than expected, prompting a reassessment of the channel's potential [3][15] - The company is facing challenges due to high tariffs on imported goods, particularly affecting the Home segment, where approximately 35% of sales are sourced from China [11][18] Restructuring and Future Outlook - Dorel is implementing further restructuring in the Home segment to address lower-than-expected sales and margin levels, including merging sales and marketing functions with the successful Cosco division [20][21] - The company anticipates that the domestic manufacturing capabilities in the Juvenile segment could provide a competitive advantage amid ongoing tariff challenges [12][26] - The outlook remains uncertain due to the current tariff situation, with expectations of continued challenges in the Home segment [25][26]

Group 1 - Indoor Group will initiate change negotiations to improve profitability, covering 84 employees in support functions [1][2] - The goal of the negotiations is to achieve a profitability improvement of approximately EUR 2 million as part of a broader operating model reform aimed at an annual operating profit increase of at least EUR 10 million by the end of 2026 [2] - Indoor Group reported an operating loss of EUR 2.5 million in the first quarter, making these profitability improvement measures necessary [3] Group 2 - KH Group operates in various business areas, including construction equipment, rescue vehicles, and furniture retail, with a strategy to create an industrial group around KH-Koneet [3] - KH Group's shares are listed on Nasdaq Helsinki, indicating its presence in the public market [3]

Company Overview - Arhaus, Inc. (NASDAQ: ARHS) has experienced declining earnings over the past couple of years, aligning with industry peers due to a weak housing market and consumer uncertainty [1] - The company has recently faced increasing uncertainty, leading to a reduction in its earnings forecast [1] Industry Context - The overall industry is struggling due to a challenging housing market, which has negatively impacted consumer spending and confidence [1]