Investment Rating - The report maintains a "Buy" rating for the company with a target price of 18.40 CNY based on a 23x PE for 2025 [4][7]. Core Insights - The company experienced a revenue decline of 14.1% year-on-year in H1 2025, with a net profit decrease of 29.3% [11]. - Domestic business faced challenges due to regulatory changes and pricing adjustments, but there was a trend improvement starting Q2 2025 [11]. - International business showed robust growth, with a 9.0% increase in revenue, driven by new product launches and market penetration [11]. - The company is increasing its R&D efforts, with a 22.3% R&D expense ratio in H1 2025, indicating a focus on expanding its product portfolio [11]. Financial Summary - Revenue projections for 2025-2027 are 1,294 million CNY, 1,465 million CNY, and 1,650 million CNY, respectively, with growth rates of 12.8%, 13.2%, and 12.6% [6]. - The gross margin is expected to be 63.9% in 2025, with net profit margins of 26.3% [6][11]. - EPS estimates for 2025-2027 are 0.80 CNY, 0.92 CNY, and 1.05 CNY, respectively [4][6].

Investment Rating - The report maintains a "Buy" rating for the company [7] Core Views - The company has shown strong performance in home products and steady growth overseas, with a revenue forecast adjustment for 2024 and an increase in gross margin expectations [3][11] - The company is expected to achieve EPS of 0.91, 1.06, and 1.18 yuan for the years 2025, 2026, and 2027 respectively, with a target price set at 17.29 yuan based on a 19x PE for 2025 [3][7] Financial Summary - The company reported a revenue of 1,146 million yuan in 2023, with a slight increase to 1,148 million yuan in 2024, and projected revenues of 1,294 million yuan, 1,465 million yuan, and 1,650 million yuan for 2025, 2026, and 2027 respectively, reflecting growth rates of 12.8%, 13.2%, and 12.6% [5][11] - The gross margin is expected to improve from 63.0% in 2023 to 67.2% in 2024, with a slight decline projected thereafter [5][11] - The net profit attributable to the parent company is forecasted to grow from 329 million yuan in 2023 to 507 million yuan in 2027, with growth rates of 30.7%, 5.1%, 12.9%, 16.9%, and 11.2% for the respective years [5][11] - The company’s operating profit is projected to increase from 345 million yuan in 2023 to 547 million yuan in 2027, with growth rates of 34.6%, 9.5%, 9.3%, 19.3%, and 11.1% [5][11] - The company’s net profit margin is expected to rise from 28.7% in 2023 to 30.7% in 2027 [5][11]