Investment Rating - The report maintains a "Buy" rating for the company [4][6]. Core Insights - The company reported a revenue growth of 15.8% year-on-year in Q1 2025, with Non-GAAP net profit increasing by 43.4% [1][4]. - The overall product revenue reached CNY 242.31 billion in Q1 2025, reflecting a 16.2% year-on-year growth, with significant contributions from home appliances and daily necessities [2][10]. - The company has initiated a plan to convert exports to domestic sales, aiming to procure no less than CNY 200 billion worth of goods to support domestic market expansion [2][4]. Summary by Sections Financial Performance - In Q1 2025, the company achieved total revenue of CNY 301.08 billion, with a GAAP net profit of CNY 10.89 billion, marking a 52.7% increase year-on-year [1][10]. - The Non-GAAP net profit for the same period was CNY 12.76 billion, up 43.4% year-on-year [1][10]. Revenue Breakdown - The company's product revenue was CNY 242.31 billion, with home appliances and 3C products contributing CNY 144.30 billion (17.1% growth) and daily necessities contributing CNY 98.01 billion (14.9% growth) [2][10]. - Service revenue totaled CNY 58.77 billion, with platform and advertising revenue at CNY 22.32 billion (15.7% growth) [2][10]. Share Buyback and Employee Benefits - The company has repurchased 80.7 million A shares for approximately USD 1.5 billion, representing about 2.8% of the total shares outstanding as of the end of 2024 [3][4]. - Starting from March 1, 2025, the company began contributing to social insurance for full-time delivery riders, becoming the first platform in China to do so [3][4]. Profit Forecast Adjustments - The profit forecasts for 2025, 2026, and 2027 have been revised down by 14%, 12%, and 11% respectively, due to the ongoing development of the delivery business [4][5]. - The expected Non-GAAP net profits for 2025, 2026, and 2027 are CNY 448.14 billion, CNY 505.74 billion, and CNY 531.82 billion respectively [4][5]. Valuation Metrics - The projected revenue growth rates for the upcoming years are 12.19% for 2025, 6.56% for 2026, and 4.34% for 2027 [5][11]. - The company's P/E ratio is expected to be 11 for 2025, with a P/B ratio of 1.4 [5][11].

Core Viewpoint - The company reported strong financial performance in Q1 2025, with significant year-on-year growth in revenue and net profit, driven by consumption stimulus policies and an enhanced platform ecosystem [2][3]. Financial Performance - In Q1 2025, the company achieved a revenue of 301.08 billion yuan, representing a year-on-year growth of 15.8% [2]. - The GAAP net profit reached 10.89 billion yuan, up 52.7% year-on-year, while the Non-GAAP net profit was 12.76 billion yuan, reflecting a 43.4% increase [2]. Revenue Growth Acceleration - The overall merchandise revenue in Q1 2025 was 242.31 billion yuan, with a year-on-year growth of 16.2% [3]. - The home appliance and 3C product revenue was 144.3 billion yuan, growing 17.1% year-on-year [3]. - Daily necessities revenue reached 98.01 billion yuan, increasing by 14.9% year-on-year [3]. - Service revenue totaled 58.77 billion yuan, with a year-on-year growth of 14.0% [3]. Strategic Initiatives - The company announced an export-to-domestic sales plan, aiming to procure no less than 200 billion yuan worth of goods through partnerships with domestic manufacturers [3]. - The company has deepened strategic cooperation with digital product brands like Xiaomi to enhance product offerings and customer experience [3]. Share Buyback and Employee Benefits - As of May 13, 2025, the company repurchased 80.7 million A shares, totaling approximately 1.5 billion USD, which is about 2.8% of the circulating shares at the end of 2024 [4]. - The remaining buyback plan has a budget of 3.5 billion USD [4]. - The company became the first platform in China to provide full-time delivery riders with social insurance and housing fund contributions starting from March 1, 2025 [4].