Group 1 - The company is holding its first extraordinary general meeting of shareholders in 2025 to discuss important matters, including the proposal to change part of the fundraising projects [1][2] - The meeting will be conducted with both on-site and online voting, allowing shareholders to exercise their voting rights based on the number of shares they hold [2][3] - A legal opinion will be provided by Fujian Zhili Law Firm to ensure compliance and proper conduct during the meeting [2][3] Group 2 - The company plans to change the use of 150.4758 million yuan from the non-public offering of shares, originally allocated for the construction of the Xiamen Tong'an Phase IV factory, to fund the first phase of the Thailand production base project [4][8] - The total investment for the Thailand production base project is estimated at 177.3135 million yuan, with 150.4758 million yuan sourced from the fundraising [9][10] - The Thailand project aims to enhance the company's global layout, improve response times for localized services, and increase resilience against risks associated with international trade [10][11]

Core Viewpoint - The company reported a decline in revenue and net profit for 2024, with expectations for gradual improvement in 2025 due to government subsidies and retail performance recovery [1][2]. Financial Performance - In 2024, the company achieved revenue of 5.258 billion, net profit of 385 million, and non-recurring net profit of 340 million, representing year-on-year declines of 14%, 35%, and 38% respectively [1]. - For Q4 2024, the revenue, net profit, and non-recurring net profit were 1.583 billion, 119 million, and 107 million, showing year-on-year declines of 28%, 51%, and 52% respectively [1]. - In Q1 2025, the figures were 818 million for revenue, 42 million for net profit, and 36 million for non-recurring net profit, with year-on-year changes of -0.3%, -11%, and -8% respectively [1]. Retail and Market Trends - Retail revenue for Q4 2024 to Q1 2025 showed a year-on-year decline of 12%, but improved from a decline of 15% in Q3 2024, indicating a narrowing drop due to effective government subsidies [2]. - Direct sales business saw a significant increase of 92% year-on-year, linked to the nationwide subsidy initiative [2]. - Contract liabilities at the end of Q1 2025 increased by 9% year-on-year, suggesting a positive outlook for Q2 2025 [2]. Profitability and Cost Management - In Q4 2024, gross margin increased by 0.3 percentage points, while expenses related to sales, management, R&D, and finance decreased year-on-year [3]. - The company faced an increase in asset impairment losses, which contributed to a decline in net profit margins [3]. - For Q1 2025, gross margin decreased by 5.1 percentage points, with declines in dealer and direct sales margins attributed to changes in order structure [3]. Strategic Outlook - The company aims to enhance customer value through a comprehensive approach and optimize its organizational structure to support growth in southern markets and international expansion [4]. - Focus areas include increasing market penetration in Australia and North America, while also exploring emerging markets in Southeast Asia and the Middle East [4]. - The company plans to maintain a dividend payout ratio of 68% for 2024, translating to a current dividend yield of approximately 5.5% [4]. - Projected net profits for 2025-2027 are 440 million, 480 million, and 530 million respectively, with corresponding price-to-earnings ratios of 11, 10, and 9 times [4].

Investment Rating - The investment rating for the company is "Outperform the Market" [6][4][26] Core Views - The company experienced a slight decline in revenue in Q1 2025, with a revenue of 0.82 billion, down 0.3% year-on-year, and a net profit of 0.04 billion, down 10.9% year-on-year. The decline in revenue is attributed to the pressure from the real estate sector and weak consumer demand, but the impact was mitigated by the implementation of national subsidy policies [1][2][3] - The company has initiated a deep transformation in domestic retail since Q4 2024, which, combined with the effects of national subsidies, has led to a significant narrowing of revenue decline in Q1 2025 [1][4] - The company plans to distribute a cash dividend of 6 yuan for every 10 shares, with a payout ratio of 67.95%, an increase of 16.6 percentage points year-on-year [1][4] Revenue and Profit Analysis - In 2024, the company reported a total revenue of 5.26 billion, down 14.0% year-on-year, and a net profit of 0.39 billion, down 35.2% year-on-year. The revenue for Q4 2024 was 1.58 billion, down 27.7% year-on-year [1][5] - The revenue breakdown for 2024 shows a decline in various segments: distribution (-18.9%), direct sales (-0.8%), bulk sales (-16.2%), and overseas sales (+37.3%). In Q1 2025, the revenue changes were -25.0% for distribution, +205.8% for direct sales, -55.8% for bulk sales, and +3.5% for overseas sales [2][4] Margin and Cost Control - The gross margin for 2024 was 36.3%, down 0.8 percentage points, and the net margin was 7.3%, down 2.4 percentage points. In Q1 2025, the gross margin further decreased to 32.2%, down 5.1 percentage points [3][4] - The company effectively controlled expenses in Q1 2025, with sales, management, R&D, and financial expense ratios at 17.1%, 7.2%, 4.9%, and 0.2%, respectively, showing a year-on-year decrease [3][4] Future Earnings Forecast - The earnings forecast has been adjusted downwards, with expected net profits for 2025, 2026, and 2027 at 0.42 billion, 0.47 billion, and 0.52 billion, respectively, reflecting year-on-year growth of 9.0%, 12.6%, and 10.7% [4][5] - The diluted EPS for the same years is projected to be 0.96, 1.08, and 1.20 yuan, with corresponding P/E ratios of 11, 10, and 9 times [4][5]

Investment Rating - The investment rating for the company is "Buy" and is maintained [8]. Core Views - The company achieved revenue of 18.925 billion, net profit attributable to shareholders of 2.599 billion, and net profit excluding non-recurring items of 2.316 billion in 2024, representing declines of 17%, 14%, and 16% year-on-year respectively. For Q4 2024, the figures were 5.046 billion, 568 million, and 553 million, showing year-on-year declines of 19%, 22%, and a slight increase of 1% respectively. The first quarter of 2025 showed a revenue of 3.447 billion, net profit of 308 million, and net profit excluding non-recurring items of 266 million, with year-on-year changes of -5%, +41%, and +86% respectively [2][6][11]. Summary by Sections Revenue and Profitability - The overall revenue for 2024 decreased by 14% compared to the previous year, but the decline narrowed from -21% in Q3 2024. The company is expected to see continued improvement in Q2 2025, with contract liabilities increasing by 169% year-on-year by the end of Q1 2025 [7][11]. Channel and Product Performance - In Q4 2024, retail, bulk, and export sales saw year-on-year declines of 22%, 23%, and an increase of 49% respectively. The integrated home segment showed resilience, with annual growth rates of 26% and a decline of 19% for the retail segment. In Q1 2025, retail and bulk sales were down by 1% and 29%, while exports increased by 46% [7][11]. Margin Improvement - The gross margin has shown improvement for eight consecutive quarters, with Q4 2024 and Q1 2025 gross margins increasing by 2.3 and 4.3 percentage points year-on-year respectively. This improvement is attributed to internal efficiency measures and a shift towards higher-margin direct sales [11][13]. Strategic Initiatives - The company is optimizing its channel structure and advancing its integrated home strategy, which has strengthened its operational resilience and competitiveness. In 2024, the number of distribution stores decreased by 966, while the number of effective retail integrated home stores increased by over 450, reaching more than 1,100 [11][13]. Future Outlook - The company plans to enhance profit quality as a core goal for 2025, focusing on internal transformation and cost reduction. This includes a granular approach to profit centers and optimizing product development and delivery processes [11][13]. Financial Projections - The company is expected to distribute 1.5 billion in dividends in 2024, with a payout ratio of 58% and a dividend yield of 3.7%. Projected net profits for 2025-2027 are 2.89 billion, 3.17 billion, and 3.57 billion respectively, with corresponding price-to-earnings ratios of 14, 13, and 11 times [11][12].

Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company's performance in 2024 was impacted by macroeconomic conditions, with a revenue of 5.26 billion yuan, down 14% year-on-year, and a net profit of 390 million yuan, down 35.2% year-on-year. The fourth quarter of 2024 saw a revenue of 1.58 billion yuan, down 27.7%, and a net profit of 120 million yuan, down 51.5%. In the first quarter of 2025, revenue was 820 million yuan, down 0.3%, with a net profit of 42.08 million yuan, down 10.9% [5][6][10] Summary by Sections Revenue Performance - In 2024, the revenue from kitchen cabinets, wardrobes, and wooden doors was 2.39 billion, 2.12 billion, and 370 million yuan respectively, with year-on-year declines of 15.6%, 15.3%, and 9.1%. The fourth quarter of 2024 saw revenues of 730 million, 620 million, and 130 million yuan for these segments, with declines of 32.5%, 25.7%, and 22.4% respectively [6][10] Channel Performance - Revenue from direct sales, distribution, bulk, and overseas channels in 2024 was 470 million, 2.53 billion, 1.68 billion, and 210 million yuan, with year-on-year changes of -0.8%, -18.9%, -16.2%, and +37.3% respectively. In Q4 2024, these channels generated revenues of 210 million, 620 million, 580 million, and 70 million yuan, with changes of +26.8%, -35.3%, -36.7%, and +41.0% respectively [6][10] Overseas Expansion - The company accelerated its overseas expansion, extending its business from engineering integration to retail franchises. By the end of 2024, the overseas business covered over ten countries and regions, including Australia, Southeast Asia, and the Middle East [6][10] Profitability Metrics - The overall gross margin for 2024 was 36.3%, a decrease of 0.8 percentage points year-on-year. The gross margins for kitchen cabinets, wardrobes, and wooden doors were 40.2%, 39.0%, and 17.7%, with changes of -0.7, +1.0, and -3.3 percentage points respectively. The gross margin for overseas channels was 28.0%, an increase of 9.8 percentage points year-on-year [8][9] Financial Forecasts - The revenue forecasts for 2025 and 2026 have been adjusted to 5.693 billion and 6.296 billion yuan, respectively, with net profit forecasts of 422 million and 494 million yuan. The report also includes a new forecast for 2027, projecting revenue of 6.857 billion yuan and net profit of 552 million yuan [10][11]

Core Viewpoint - The company reported a decline in revenue and net profit for 2024, attributed to market demand contraction, industry restructuring, and intensified competition [1][2] Financial Performance - In 2024, the company achieved operating revenue of 18.925 billion yuan, a year-on-year decrease of 16.93% [1] - The net profit attributable to shareholders was 2.599 billion yuan, down 14.38% year-on-year, with a non-recurring net profit of 2.316 billion yuan, a decline of 15.65% [1] - For Q4 2024 and Q1 2025, revenues were 5.046 billion yuan and 3.447 billion yuan, reflecting year-on-year declines of 18.8% and 4.8%, respectively [1] - The company plans to distribute a cash dividend of 2.48 yuan per share, totaling 1.502 billion yuan, with a payout ratio of 57.7% [1] Product Performance - The company’s main products, including kitchen cabinets, wardrobes, and bathroom products, saw revenue declines: kitchen cabinets at 5.449 billion yuan (-22.48%), wardrobes at 9.791 billion yuan (-18.06%), and bathroom products at 1.135 billion yuan (-17.66%) [2] Channel Analysis - Revenue from the distribution channel fell to 14.042 billion yuan, a decrease of 20.10% year-on-year, primarily due to challenges in the traditional single-product distribution model [3] - The company’s bulk channel revenue was 3.045 billion yuan in 2024 and 0.496 billion yuan in Q1 2025, down 15.08% and 28.61%, respectively [3] - Direct sales channels showed growth, with revenues of 0.833 billion yuan in 2024 and 0.164 billion yuan in Q1 2025, increasing by 0.57% and 10.21% year-on-year [3] - Overseas channel revenue reached 0.430 billion yuan, up 34.42% year-on-year, with a solid sales network established in 146 countries [3] Brand Performance - Revenue by brand in 2024: 欧派 at 14.109 billion yuan (-22.76%), 欧铂丽 at 1.207 billion yuan (-12.79%), 欧铂尼 at 1.222 billion yuan (-11.35%), and 铂尼思 at 1.104 billion yuan (+26.23%) [4] - The company implemented a "10+1" terminal operation model to enhance brand recognition and reputation [4] Profitability - In Q1 2025, the gross margin improved to 34.29%, an increase of 4.31 percentage points, due to supply chain reforms and cost reductions [5] - The net profit margin reached 8.97%, up 2.94 percentage points, with a slight increase in expense ratios despite revenue decline [6] Investment Outlook - The company is expected to benefit from government subsidies and a recovering housing market, with projected revenues for 2025-2027 at 20.420 billion, 21.686 billion, and 23.616 billion yuan, respectively [7] - Earnings per share (EPS) estimates for 2025-2027 are 4.61, 4.90, and 5.43 yuan, with a maintained "buy" rating [7]

Core Viewpoint - The company reported better-than-expected performance in Q1 2025, with a revenue of 3.447 billion yuan, a year-on-year decline of 4.8%, and a net profit attributable to shareholders of 308 million yuan, a year-on-year increase of 41.29% [1] Financial Performance - Revenue breakdown by product shows that kitchen cabinets, wardrobes, and supporting products, sanitary ware, and wooden doors generated revenues of 977 million, 1.8 billion, 223 million, and 220 million yuan respectively, with year-on-year changes of -8.49%, -5.56%, +9.66%, and +0.98% [2] - The gross margin improved by 4 percentage points year-on-year, reaching 34.29% in Q1 2025, driven by cost reduction and efficiency enhancement [2] - The net profit margin for Q1 2025 was 8.93%, an increase of 2.91 percentage points year-on-year [2] Development Trends - The company is transitioning to an integrated home furnishing model, with a net reduction of 84 stores, totaling 7,729 stores by the end of Q1 2025 [3] - The company introduced the "521X Integrated Operation System" to enhance market competitiveness and drive steady growth in the home furnishing sector [3] Profit Forecast and Valuation - The profit forecasts for 2025 and 2026 remain unchanged, with the current stock price corresponding to 15 and 14 times P/E for those years [4] - The target price is maintained at 85 yuan, implying a 31% upside potential based on 19 and 18 times P/E for 2025 and 2026 respectively [4]

Core Viewpoint - The company reported a decline in revenue and net profit for 2024, with total revenue of 18.925 billion yuan, down 16.93% year-on-year, and a net profit of 2.599 billion yuan, down 14.38% year-on-year, slightly meeting market expectations [1] Financial Performance - Quarterly revenue for 2024 was 3.621 billion, 4.962 billion, 5.296 billion, and 5.046 billion yuan, showing year-on-year changes of +1.43%, -20.91%, -21.21%, and -18.84% respectively [1] - Quarterly net profit for 2024 was 0.218 billion, 0.772 billion, 1.041 billion, and 0.568 billion yuan, with year-on-year changes of +43%, -21.26%, -11.56%, and -21.71% respectively [1] Industry Trends - The industry is facing demand decline and channel transformation, impacting dealer channels. Revenue by product for kitchen cabinets, wardrobes, sanitary ware, and wooden doors was 5.45 billion, 9.79 billion, 1.09 billion, and 1.13 billion yuan, with year-on-year changes of -22.48%, -18.06%, -3.60%, and -17.66% respectively [2] - Revenue by channel for direct sales, dealers, and bulk business was 0.833 billion, 14.042 billion, and 3.045 billion yuan, with year-on-year changes of +0.57%, -20.10%, and -15.08% respectively [2] - The company has over 1,100 retail home furnishing stores, with a net increase of over 450 stores year-on-year, and a significant growth in home furnishing orders [2] Cost Control and Profitability - The company's gross margin increased by 1.76 percentage points to 35.91% in 2024, while the expense ratio rose by 2.53 percentage points to 20.98% [3] - The net profit margin for 2024 was 13.73%, up 0.41 percentage points year-on-year [3] Future Outlook - The company is focusing on improving net profit quality by targeting the old and second-hand housing market as a new growth area, driven by consumer preferences for high-quality products [3] - Plans include advancing the "land to household" mechanism reform and building a market-oriented operating system, along with enhancing internal management and cost efficiency [3] Earnings Forecast and Valuation - The earnings forecast for 2025 and 2026 has been revised down by 10% and 13% to 2.72 billion and 2.88 billion yuan respectively, with the current stock price corresponding to 15 and 14 times the earnings ratio for those years [4] - The target price remains at 85 yuan, implying a 27% upside potential based on a valuation of 19 and 18 times the earnings ratio for 2025 and 2026 [4]

Investment Rating - The investment rating for the company is "Buy" (maintained) [7] Core Views - The company reported a revenue of 18.92 billion (down 16.93% YoY) and a net profit attributable to shareholders of 2.60 billion (down 14.38% YoY) for 2024 [1][13] - The fourth quarter of 2024 showed a revenue of 5.05 billion (down 18.84% YoY) and a net profit of 568 million (down 21.71% YoY), with a notable improvement in non-recurring net profit [1][13] - The company expects significant revenue improvement in the first quarter of 2025 due to a longer conversion cycle for national subsidy orders [1] Revenue and Profitability - Retail channels are being optimized, with direct sales revenue of 830 million (up 0.57% YoY) and distribution channel revenue of 14 billion (down 20.10% YoY) for 2024 [2] - The company closed inefficient stores, reducing the number of direct and distribution stores to 63 and 7750, respectively [2] - The cabinet business faced challenges due to supporting products, with kitchen cabinet revenue at 5.45 billion (down 22.48% YoY) and wardrobe plus supporting products revenue at 9.79 billion (down 18.1% YoY) [3] Operational Strategy - The company employs a localized operation model to assist distributors in formulating transformation plans [4] - The integration of AI in e-commerce has led to a nearly 10% YoY increase in online traffic, benefiting over 4000 distributors [4] Dividend Policy - The company increased its dividend payout ratio to 58%, distributing a total of 1.5 billion in cash dividends for 2024 [5] Financial Health - The gross profit margin for 2024 was 35.91% (up 1.76 percentage points YoY), with a significant reduction in material costs contributing to this improvement [6] - The operating cash flow net amount was 5.50 billion (up 13% YoY), indicating improved capital efficiency [12] Earnings Forecast and Valuation - The company is expected to achieve revenues of 19.53 billion (up 3.18% YoY) in 2025, with net profit attributable to shareholders projected at 2.73 billion (up 5.17% YoY) [13]