Investment Rating - The report maintains a "Strong Buy" rating for Qu Mei Home (603818) [2][8] Core Views - The Q3 performance met expectations, with revenue and net profit showing signs of recovery despite previous losses. The company is actively restructuring its debt and exploring new business opportunities [2][8] - The domestic market is under pressure, but the overseas business is showing steady recovery, particularly with the Ekornes brand, which is expected to continue its growth trend as holiday promotions approach [8][9] - The company is focusing on cost optimization and innovation in its core business while expanding into new segments such as smart home products and AI technology [8][9] Financial Summary - For the first three quarters of 2025, the company reported total revenue of 2.55 billion CNY, a decrease of 3.1% year-on-year, with a net loss of 67 million CNY [2][4] - The projected total revenue for 2025 is estimated at 3.449 billion CNY, with a slight decline of 2.9% compared to 2024. However, net profit is expected to improve significantly in the following years, reaching 116 million CNY by 2026 [4][9] - The company's gross margin for Q3 was 35.8%, with an increase in operating expenses leading to a net profit margin of -2.4% [8][9] Market Performance - The current stock price is 4.10 CNY, with a target price set at 5.07 CNY, indicating a potential upside [4][8] - The company has a total market capitalization of 28.15 billion CNY and a debt-to-equity ratio of 65.68% [5][9]

Core Insights - The consumer market in China maintained a steady growth trend in October, with continuous release of consumption potential [1] Group 1: Goods Consumption - In October, retail sales of goods increased by 2.8%, with significant growth in sales of trade-in related products [1] - Retail sales of communication equipment, cultural and office supplies, and furniture for enterprises above designated size grew by 23.2%, 13.5%, and 9.6% respectively [1] - Demand for upgraded consumer goods remained strong, with retail sales of gold, silver, and jewelry, sports and entertainment products, and cosmetics increasing by 37.6%, 10.1%, and 9.6% respectively [1] Group 2: Service Consumption - From January to October, retail sales of services grew by 5.3%, driven by holiday travel demand [1] - Retail sales in tourism consulting and leasing services, transportation services, and cultural and recreational services all maintained a growth rate of over 10% [1] - In October, restaurant income increased by 3.8% [1] Group 3: New Consumption Trends - In October, sales of smart health devices increased by over 20%, while sales of smart wearable devices grew by approximately 4% [1] - Sales of certain first-level energy-efficient home appliances increased by over 10% [1] - E-commerce played a positive role in boosting consumption, with online service consumption growing by 21% [1]

1. Report Industry Investment Rating No industry investment rating is provided in the report. 2. Core View of the Report The "troika" of consumption, investment, and net - exports supporting GDP is under increasing pressure in October, and short - term economic growth may face certain challenges. However, considering the good economic performance in the first three quarters of this year, it is not difficult to achieve the 5% economic growth target for the year 2025. In the next six months, policy rate cuts and the implementation of incremental tools may be the key support measures. Future supportive policies may be more inclined to stimulate consumption. The current bond market has prominent allocation value, and bond yields may fluctuate downward [2]. 3. Summary by Relevant Catalogs 3.1 Consumption - In October, the growth rate of consumption continued to decline. The total retail sales of consumer goods in October was 4.6 trillion yuan, a year - on - year increase of 2.9%, 0.1 percentage points lower than the previous month, and the growth rate has declined for five consecutive months. From January to October, the total retail sales of consumer goods increased by 4.3% year - on - year, 0.2 percentage points lower than the previous period [2]. - Service consumption showed continuous strength. In October, catering revenue increased by 3.8% year - on - year, 2.9 percentage points higher than September. Policies such as "Several Policy Measures to Expand Service Consumption" and the "15th Five - Year Plan Proposal" emphasized the expansion of service consumption [2]. - The year - on - year growth rate of most retail sales of categories related to national subsidies continued to slow down. In October, the year - on - year growth rate of retail sales of household appliances and audio - visual equipment above the designated size dropped significantly by 17.9 percentage points to - 14.6% [2]. 3.2 Investment - Fixed - asset investment has been weak for seven consecutive months, with negative year - on - year growth for two consecutive months and accelerating decline. From January to October, fixed - asset investment decreased by 1.7% year - on - year. Infrastructure investment, manufacturing investment, and real estate development investment reached their lowest values since 2022, with year - on - year decreases of - 0.1%, + 2.7%, and - 14.7% respectively [2]. - The decline in real estate development investment has been expanding for eight consecutive months, reaching the second - lowest value since 1995, indicating that the traditional "real estate + infrastructure" driven model is unsustainable [2]. 3.3 Foreign Trade - In the first 10 months of 2025, China's total goods trade imports and exports were 37.3 trillion yuan, a year - on - year increase of 3.6%. In October, the total value of goods trade imports and exports was 3.7 trillion yuan, a year - on - year increase of 0.1%. Exports were 2.17 trillion yuan, a year - on - year decrease of 0.8%, and imports were 1.53 trillion yuan, a year - on - year increase of 1.4% [3]. - In October, the year - on - year exports of major industries (in US dollars) declined significantly compared with the previous month. Exports to the EU decreased significantly, with a year - on - year increase of 0.9% in October, a significant drop of 13.3 percentage points from the previous month [3]. 3.4 Industrial and Service Sectors - From January to October, the added value of industrial enterprises above the designated size increased by 6.1% year - on - year. In October, it increased by 4.9% year - on - year. High - tech manufacturing and equipment manufacturing maintained high growth rates, with year - on - year increases of 7.2% and 8.0% respectively in October [3]. - In October, the service production index increased by 4.6% year - on - year, 1.0 percentage points lower than the previous month [3]. 3.5 Economic Outlook and Bond Market - Economic downward pressure may increase. The "troika" supporting the economy is under pressure, and the conditions for further policy rate cuts may have been initially met [3]. - The current bond market has prominent allocation value, and bond yields may fluctuate downward. The report is bullish on the bond market in November, predicting that the yield of the 10 - year Treasury bond will return to around 1.65% within the year [3].

Core Insights - China's consumption market showed steady growth in October, with continuous release of consumption potential [1] Group 1: Goods Consumption - In October, retail sales of goods increased by 2.8%, with significant growth in sales of products related to trade-in programs [6] - Retail sales of communication equipment, cultural office supplies, and furniture grew by 23.2%, 13.5%, and 9.6% respectively [6] - Demand for upgraded consumer goods remained strong, with retail sales of gold and silver jewelry, sports and entertainment products, and cosmetics increasing by 37.6%, 10.1%, and 9.6% respectively [6] Group 2: Service Consumption - Service consumption showed good momentum, driven by holiday travel demand, with retail sales in tourism consulting, transportation services, and cultural and recreational services all maintaining over 10% growth [9] - Restaurant revenue grew by 3.8%, accelerating by 2.9 percentage points compared to September [9] - The inbound tourism sector remained robust, with 751,000 foreign visitors during the National Day and Mid-Autumn Festival holidays, marking a 19.8% increase [9] Group 3: Rural and New Consumption - Rural consumption outpaced urban areas, with county-level consumption continuing to expand and lower-tier markets showing strong vitality [14] - New types of consumption grew rapidly, with sales of smart health devices increasing by over 20%, smart wearable devices by approximately 4%, and some first-level energy-efficient appliances by over 10% [14] - Sales of organic food also saw significant growth, exceeding 8% [14]

Core Viewpoint - The company reported a slight decline in revenue but a modest increase in net profit, indicating resilience in its operations despite challenging market conditions [1][2] Financial Performance - The company’s FY26H1 revenue was HKD 8.04 billion, a year-on-year decrease of 3.1% - Net profit attributable to shareholders was HKD 1.146 billion, reflecting a year-on-year increase of 0.6% - Gross margin stood at 40.4%, up by 0.9 percentage points year-on-year - Net profit margin was 14.2%, an increase of 0.5 percentage points year-on-year [1] Domestic Sales - Domestic sales revenue reached HKD 4.67 billion, down 6.0% year-on-year, but the decline was narrowing - Gross margin for domestic sales improved to 41.0%, up by 0.8 percentage points year-on-year, benefiting from lower raw material prices - E-commerce sales grew by 13.6% to HKD 1.14 billion, while offline sales fell by 12.3% to HKD 3.059 billion - The company reduced its store count to 7,040, a net decrease of 327 stores [1] Product Performance - Sofa sales slightly outperformed bed products, with domestic sofa revenue at HKD 3.084 billion (down 6.1%) and bed revenue at HKD 1.119 billion (down 7.4%) - Sofa sales volume increased by 0.1%, while prices decreased by 6.2%, primarily due to a higher proportion of online sales [1] International Sales - Revenue from North America and Europe grew to HKD 2.16 billion and HKD 0.765 billion, respectively, with year-on-year increases of 0.3% and 4.3% - The gross margin for international sales was 39.3%, up by 1.1 percentage points year-on-year, driven by lower raw material costs and improved operational efficiency [1] Expenses - Sales expense ratio increased to 19.13%, up by 0.9 percentage points year-on-year, primarily due to tariffs imposed by the U.S. on Vietnam and increased e-commerce promotion costs - Tariff expenses rose from HKD 6.65 million to HKD 78.83 million, accounting for a year-on-year increase of 0.9 percentage points in revenue proportion [2] Investment Outlook - The domestic penetration rate for functional sofas is expected to continue rising, projected at 12.2% by 2024, an increase of 2.5 percentage points year-on-year - The company’s transformation of distributors and stores is anticipated to gradually improve performance - The company maintains a stable dividend payout ratio above 50%, with a TTM dividend yield of 5.19% and an interim dividend of HKD 0.15 per share, highlighting its investment value - Projected net profits for FY26-28 are HKD 2.23 billion, HKD 2.403 billion, and HKD 2.584 billion, respectively, with a "buy" rating maintained [2]

Core Viewpoint - The domestic consumption market in China has shown steady growth in October, driven by the National Day and Mid-Autumn Festival holidays, with continuous release of consumption potential [1] Summary by Categories Overall Consumption Performance - In October, the total retail sales of consumer goods reached 4.63 trillion yuan, representing a year-on-year growth of 2.9% [1] - From January to October, the total retail sales of consumer goods amounted to 41.2 trillion yuan, with a growth rate of 4.3%, which is 0.8 percentage points higher than the same period last year [1] Retail Sales Breakdown - In October, the retail sales of goods increased by 2.8%, with significant growth in sales of products related to trade-in programs [1] - Retail sales for communication equipment, cultural and office supplies, and furniture increased by 23.2%, 13.5%, and 9.6% respectively [1] Basic and Upgraded Goods Consumption - Basic living goods saw rapid growth, with retail sales of grain and oil foods increasing by 9.1% and clothing and footwear by 6.3% [1] - Demand for upgraded goods remained strong, with retail sales of gold and silver jewelry, sports and entertainment products, and cosmetics increasing by 37.6%, 10.1%, and 9.6% respectively [1]

Core Insights - The consumption market in China is showing steady growth, driven by the National Day and Mid-Autumn Festival holidays, with significant potential being released in October [1] Group 1: Product Consumption - In October, retail sales of goods increased by 2.8%, with notable growth in trade-in related products [1] - Retail sales of communication equipment, cultural and office supplies, and furniture grew by 23.2%, 13.5%, and 9.6% respectively [1] Group 2: Service Consumption - From January to October, service retail sales increased by 5.3%, accelerating by 0.1 percentage points compared to the first three quarters, and outpacing goods retail sales by 0.9 percentage points [1] Group 3: New Consumption Trends - In October, sales of smart health devices rose by over 20%, smart wearable devices increased by approximately 4%, sales of certain first-level energy-efficient appliances grew by over 10%, and organic food sales increased by over 8% [1] Group 4: Rural vs Urban Consumption - Rural consumption is growing faster than urban consumption, with county-level consumption expanding and the lower-tier market showing strong vitality [2]

顾家家居公告称，近日收到通知，TBHome持有公司的724.86万股股份于11月12日被浙江省杭州市中级 人民法院轮候冻结，占其所持股份的17.60%，占公司总股本的0.88%，债权金额为1.78亿元。截至公告 披露日，TBHome持有公司4117.68万股，占总股本的5.01%，累计被冻结和司法标记股份占其所持股份 的100%；杭州德烨持有公司8847.15万股，占总股本的10.77%，累计被冻结和司法标记股份占其所持股 份的100%。两股东均非控股股东、实控人，该事项不影响公司控制权及日常经营。 ...

Investment Rating - The report maintains a "Buy" rating for the company [6] Core Insights - The company reported a FY26H1 revenue of HKD 8.04 billion, a year-on-year decrease of 3.1%, while the net profit attributable to shareholders was HKD 1.146 billion, reflecting a year-on-year increase of 0.6% [6][2] - The gross margin improved to 40.4%, up 0.9 percentage points year-on-year, and the net margin increased to 14.2%, up 0.5 percentage points year-on-year [6][2] - Domestic sales showed a narrowing revenue decline, with a 6.0% decrease in domestic revenue to HKD 4.67 billion, while the gross margin for domestic sales rose to 41.0% [2][6] - E-commerce sales outperformed offline sales, with e-commerce revenue increasing by 13.6% to HKD 1.14 billion, while offline sales decreased by 12.3% to HKD 3.059 billion [2][6] Summary by Sections Domestic Sales - Domestic revenue decreased by 6.0% to HKD 4.67 billion, with a gross margin of 41.0%, benefiting from lower raw material prices [2] - The company adjusted its store layout, resulting in a net reduction of 327 stores, totaling 7,040 stores by the end of FY26H1 [2] International Sales - International sales showed steady growth, with revenue from North America and Europe increasing by 0.3% and 4.3% respectively [2] - The gross margin for international sales improved to 39.3%, up 1.1 percentage points year-on-year [2] Financial Projections - The company expects net profits for FY26, FY27, and FY28 to be HKD 2.23 billion, HKD 2.40 billion, and HKD 2.58 billion respectively [2] - The dividend payout ratio remains stable at over 50%, with a current dividend yield of 5.19% [2]

Investment Rating - The investment rating for the company is "Buy" [1][7] Core Views - The company reported a total revenue of HKD 8.241 billion for the fiscal year ending September 30, 2025, representing a year-on-year decrease of 2.7% [2] - The net profit attributable to the parent company was HKD 1.146 billion, showing a year-on-year increase of 0.6% [2] - The company plans to distribute an interim dividend of HKD 0.15 per share, with a payout ratio of 50.80% [2] Revenue Analysis - Domestic sales in China reached HKD 4.675 billion, down 6.0% year-on-year, but the decline has significantly narrowed compared to the previous year [3] - The company is focusing on optimizing its product mix and enhancing collaboration with distributors to improve sales performance [3] - The overseas market showed resilience, with North America generating HKD 2.161 billion in revenue, up 0.3% year-on-year, and Europe and other markets achieving HKD 0.765 billion, up 4.3% [3] Product Performance - Revenue from sofas and related products was HKD 5.550 billion, down 4.6% year-on-year, while bedding and related products saw a decline of 7.4% [4] - Other products, including smart furniture, generated HKD 0.931 billion, up 11.4% year-on-year, primarily due to growth in overseas sales [4] Profitability - The company's gross margin and net margin were 40.4% and 14.2%, respectively, reflecting increases of 0.9 percentage points and 0.5 percentage points year-on-year [5] - The improvement in profitability is attributed to effective cost control and a decrease in raw material costs [5] Investment Recommendations - The company is positioned in a large consumer market with significant growth potential, and there is optimism regarding the stability of domestic sales and the recovery of international sales [6] - Revenue forecasts for FY2026 to FY2028 are projected at HKD 17.352 billion, HKD 18.527 billion, and HKD 19.855 billion, respectively [6] - The expected earnings per share (EPS) for the same period are HKD 0.57, HKD 0.61, and HKD 0.65, with corresponding price-to-earnings (PE) ratios of 8, 8, and 7 times [7]