Investment Rating - The report assigns a "Buy" rating for the company, HanGao Group [9] Core Insights - HanGao Group is a leading player in the domestic hardware and outdoor furniture manufacturing sector, with steady growth in revenue and profitability. The company is increasing its self-manufacturing ratio, showcasing scale advantages, while domestic hardware is rapidly replacing imported products. Supported by a multi-channel sales model, the company is expected to accelerate capacity expansion and market deployment in the future [2][3] Summary by Sections Company Overview - HanGao Group, established in 2004, transitioned from OEM to developing its own brand since 2007. The company has diversified its product line to include home storage hardware, basic hardware, kitchen and bathroom hardware, and outdoor furniture, establishing a multi-faceted profit model [24][27] Financial Performance - In 2024, the company achieved revenue of 2.857 billion yuan, a year-on-year increase of 28.6%, and a net profit of 531 million yuan, up 59.7%. For the first three quarters of 2025, revenue reached 2.497 billion yuan, growing 24.27% year-on-year, with a net profit of 483 million yuan, up 38.07% [3][27][29] Product Structure - Basic hardware is the main growth driver, with revenue increasing from 103 million yuan in 2019 to 1.224 billion yuan in 2024, representing a CAGR of 64%. Outdoor furniture revenue reached 262 million yuan in 2024, growing 39.69% year-on-year, reversing a decline from previous years [4][30][31] Channel Structure - The offline distribution channel accounted for 56.33% of total revenue in 2024, generating 1.609 billion yuan, a 26.48% increase. The company is also expanding its online sales through e-commerce platforms, contributing 312 million yuan in revenue, up 24.67% [5][37] Industry Dynamics - The hardware industry is evolving, with many small enterprises in the market. Leading companies like HanGao Group are expected to leverage their scale and brand advantages to eliminate less competitive players, reshaping the competitive landscape [6][7] Future Growth Outlook - HanGao Group is well-positioned to capitalize on domestic substitution opportunities, enhancing its brand, channel, and scale advantages. The company is expected to see revenue growth of 3.569 billion yuan in 2025, with a year-on-year increase of 24.93% [9][16]