Investment Rating - The investment rating for the company is "Buy" and is maintained [8]. Core Insights - In the first three quarters of 2025, the company achieved revenue, net profit attributable to the parent, and net profit excluding non-recurring items of 15.012 billion, 1.539 billion, and 1.389 billion yuan, respectively, representing year-on-year growth of 9%, 13%, and 14%. For Q3 alone, the figures were 5.211 billion, 518 million, and 489 million yuan, with year-on-year growth of 7%, 12%, and 11% [2][6]. - Both domestic and international sales saw growth in Q3, with the company’s competitive advantages strengthening, alongside favorable cash flow and high dividends, highlighting its investment value [2][6]. Summary by Sections Revenue and Profit Growth - The company reported steady revenue growth, with Q3 domestic sales continuing the trend from H1, particularly in sofas, soft beds, and mattresses, which saw year-on-year increases of 14.7%, 10.4%, and 12.6%, respectively. The growth in sofas was driven by functional sofas, with retail sales in this category increasing by over 50% due to continuous product technology optimization [7]. International Sales and Expansion - International sales also showed growth, particularly in the sofa and mattress segments. The company is expanding its overseas production capacity in Vietnam, Mexico, and the U.S., with plans for a new base in Indonesia. The development of new business trends, such as cross-border e-commerce and the establishment of self-owned brand stores in various countries, is contributing positively to growth [7]. Profitability and Cost Management - The company’s profitability continued to improve in Q3, with gross margin, net profit margin, and net profit excluding non-recurring items increasing by 1.6, 0.5, and 0.4 percentage points year-on-year, respectively. This improvement is attributed to ongoing cost reduction efforts and operational efficiency [7]. Future Outlook - The company expects net profit attributable to the parent to reach 1.93 billion, 2.10 billion, and 2.32 billion yuan for 2025-2027, corresponding to price-to-earnings ratios of 13, 12, and 11 times. The anticipated dividend for 2024 is 1.13 billion yuan, yielding a dividend rate of approximately 4.5% [7].

Investment Rating - The report assigns a "Buy" rating for the company, marking its first coverage [2][7]. Core Insights - The company is experiencing steady growth in foreign trade and is advancing its dual-wing strategy [2]. - The company plans to invest RMB 1.124 billion in building a self-owned base in Indonesia, expected to generate annual revenue of approximately RMB 2.520 billion within three years after completion [4]. - The company reported a strong performance in the first half of 2025, with revenue of RMB 9.801 billion, a year-on-year increase of 10.02%, and a net profit of RMB 1.021 billion, up 13.89% year-on-year [4]. - Domestic retail is stabilizing, while foreign trade revenue continues to grow, with domestic revenue reaching RMB 5.225 billion, a 10.65% increase year-on-year [4]. - The company is diversifying its product offerings, with significant growth in its sofa and mattress segments, achieving revenue of RMB 5.667 billion and RMB 1.693 billion respectively in the first half of 2025 [4]. - The company is focused on efficiency improvements, with a comprehensive gross margin of 32.89% in the first half of 2025, slightly down by 0.14 percentage points year-on-year [5]. Financial Forecasts - The company is projected to achieve revenues of RMB 19.780 billion, RMB 21.802 billion, and RMB 24.131 billion from 2025 to 2027, with corresponding net profits of RMB 1.856 billion, RMB 1.946 billion, and RMB 2.045 billion [6][7]. - The estimated P/E ratios for the company are 14, 13, and 12 for the years 2025, 2026, and 2027 respectively [7][8].