Revenue Performance - In 2024, the company achieved revenue of 1.557 billion yuan, a year-on-year decrease of 8%, with Q4 2024 revenue declining by 15% to 488 million yuan [1][3] - For Q1 2025, revenue was 259 million yuan, reflecting an 11% year-on-year decline [2][3] - The decline in revenue is attributed to weak consumer demand, although there was significant growth in smart product sales [3] Product Analysis - In 2024, revenue from smart home products and traditional drying racks decreased by 7% and 19% year-on-year, respectively [3] - Smart home product sales increased by 19%, while traditional drying rack sales fell by 21% [3] - The average selling price of smart products dropped to 866 yuan due to industry price wars, with expectations of price stabilization in Q1 2025 [3] Profitability Insights - Gross margin faced pressure due to changes in product mix, with Q4 2024 and Q1 2025 gross margins at 37.6% and 47.9%, respectively, reflecting year-on-year declines of 15.5 and 4.0 percentage points [4] - The increase in sales, management, and financial expense ratios indicates that expenses are rising faster than revenue growth, impacting profitability [4] - The net profit margin for Q1 2025 was 12.9%, showing a recovery trend compared to the previous quarter [4] Strategic Outlook - The company is well-positioned in the smart drying market, holding a market share of approximately 40%, and is expected to benefit from government subsidies starting in March 2025 [5] - The company plans to expand its product range beyond smart drying racks to include smart locks, curtains, and other smart home products, aiming for a comprehensive smart home ecosystem [5] - Profit forecasts for 2025-2027 project net profits of 280 million, 330 million, and 380 million yuan, with corresponding price-to-earnings ratios of 20, 17, and 15 [6]

Investment Rating - The investment rating for the company is "Buy" and is maintained [10]. Core Views - The company's revenue performance is under pressure, with expectations for demand recovery driven by national subsidies. The company has a solid foundation in smart drying products and aims to expand into multiple categories to drive future growth. The company has a market share of approximately 40% in the smart drying sector and anticipates a gradual recovery in revenue following the implementation of national subsidies in March 2025 [9][10]. Financial Performance Summary - For 2024, the company is projected to achieve revenue of 1.557 billion, net profit attributable to shareholders of 248 million, and net profit excluding non-recurring items of 244 million, representing year-on-year declines of 8%, 24%, and 24% respectively. In Q4 2024, the expected revenue is 488 million, with net profit attributable to shareholders at 58 million and net profit excluding non-recurring items at 54 million, reflecting year-on-year declines of 15%, 35%, and 42% respectively. For Q1 2025, the company is expected to generate revenue of 259 million, with net profit attributable to shareholders at 33 million and net profit excluding non-recurring items at 32 million, showing year-on-year declines of 11%, 40%, and 43% respectively [2][7][9]. Revenue and Profit Analysis - The company faces significant operational pressure in 2024, with an overall revenue decline of 8%. In Q4 2024, the revenue decline is projected at 15%. However, the decline in Q1 2025 is expected to narrow to 11%. The sales performance of smart home products is expected to grow, while traditional drying rack products are projected to decline by 19% [13]. The gross margin is under pressure due to changes in product mix, with Q4 2024 and Q1 2025 gross margins at 37.6% and 47.9% respectively, reflecting year-on-year declines of 15.5 and 4.0 percentage points [13]. Future Profit Forecast - The company is expected to achieve net profits attributable to shareholders of 280 million, 330 million, and 380 million for the years 2025 to 2027, corresponding to price-to-earnings ratios of 20, 17, and 15 times respectively [9].

Investment Rating - The industry investment rating is "Positive" and maintained [8] Core Insights - Haolaike, Haotaitai, and Fengzhushou signed an investment cooperation agreement on March 10, 2025, to establish a joint venture with a registered capital of 50 million yuan, where Haolaike, Haotaitai, and Fengzhushou will contribute 25 million yuan, 12.5 million yuan, and 12.5 million yuan respectively, holding 50%, 25%, and 25% of the shares [2][6] - The joint venture aims to develop a smart home IoT open platform, leveraging Haolaike's full-house customization products, Fengzhushou's digital goods resources and IoT technology, and Haotaitai's smart home hardware product matrix and supply chain integration capabilities [12] - The joint venture will focus on creating a "smart integration gateway" product for home automation and control, enhancing the smart home product ecosystem through the resale of digital goods provided by Fengzhushou [12] Summary by Sections Company Overview - Haolaike specializes in full-house customization, integrating design, research, production, and sales, with a nationwide sales network and leading marketing and service scale in the industry [12] - Fengzhushou is a well-known provider of digital virtual goods services, focusing on mobile internet scenarios and expanding into IoT application solutions and cloud services [12] - Haotaitai has over 20 years of experience in the smart drying industry, leading with a market share of 40%, and aims to expand its product offerings into a full smart home ecosystem [12] Market Potential - The penetration rate of smart drying products in China is currently around 17%, indicating significant growth potential [12] - The expected national subsidies for smart homes in 2025 are anticipated to drive replacement demand in the market [12]