Core Viewpoint - The company faces performance pressure due to a deep adjustment in the real estate industry, leading to mixed results in revenue and profit for 2024 [2][3]. Financial Performance - The company reported a revenue of approximately 8.73 billion yuan, a year-on-year increase of 0.59%, while net profit attributable to shareholders was about 322 million yuan, a decline of 24.84% [2]. - Operating cash flow decreased by 37.2% to approximately 787 million yuan, and basic earnings per share fell by 23.42% to 0.85 yuan [2]. - Revenue from soft beds and related products dropped by 8.39% to 2.44 billion yuan, and sofa business revenue decreased by 6.55% to 719 million yuan [2][3]. Market Segmentation - The company's export business grew significantly, accounting for 25% of total revenue, with a year-on-year increase of 27.46%, while domestic market revenue declined by 7.25 percentage points [2]. - In 2024, domestic and foreign market revenues were approximately 6.47 billion yuan and 2.13 billion yuan, respectively, with domestic revenue down 6.4% and foreign revenue up 27.46% [3]. Cost Structure - The company experienced an increase in "three expenses" (sales, management, and financial expenses), with total expenses reaching 1.87 billion yuan, 463 million yuan, and 309 million yuan, respectively, marking increases of 6.35%, 9.59%, and 164.95% [4]. - The rise in expenses was attributed to increased brand promotion, online sales costs, employee compensation, and interest expenses [4]. Industry Dynamics - The mattress industry in China is characterized by a large number of small companies, with increasing competition among leading brands [5]. - The company is focusing on the sleep technology sector, transitioning from traditional manufacturing to technology-driven products, aiming for differentiation [5][6]. Future Strategy - The company plans to deepen its focus on the sleep technology sector, enhancing sales capabilities, quality control, cost reduction, and innovation [6]. - The mattress industry is expected to accelerate towards smart and health-oriented products, driven by consumer demand for technology and personalized experiences [6].

Investment Rating - The report does not specify a clear investment rating for the company, but it suggests continuous attention due to its potential for steady growth in the AI and new business sectors [1][7]. Core Insights - The company achieved a revenue of 87.3 billion yuan in 2024, with a year-on-year growth of 0.6%, while the net profit attributable to the parent company was 3.2 billion yuan, down 24.8% year-on-year [7]. - The company is focusing on AI and new business opportunities, with the launch of AI smart mattresses and electric bed frames, which have seen sales exceed 100 million yuan [7][8]. - The company’s mattress segment showed steady growth, with revenue reaching 5.27 billion yuan, a year-on-year increase of 5.1% [7][8]. Financial Performance Summary - **Revenue Forecast**: Expected revenues for 2025, 2026, and 2027 are 94.3 billion yuan, 101.3 billion yuan, and 107.8 billion yuan, respectively, with growth rates of 8.0%, 7.5%, and 6.5% [2][9]. - **Net Profit Forecast**: Projected net profits for the same years are 3.47 billion yuan, 3.69 billion yuan, and 3.95 billion yuan, with growth rates of 7.5%, 6.4%, and 7.1% [2][9]. - **Earnings Per Share (EPS)**: EPS is expected to increase from 0.85 yuan in 2024 to 1.04 yuan in 2027 [2][9]. Business Segment Performance - **Mattress Segment**: Revenue is projected to grow from 5.27 billion yuan in 2024 to 7.00 billion yuan in 2027, with a compound annual growth rate (CAGR) of approximately 10% [8]. - **Soft Beds and Accessories**: Revenue is expected to decline slightly, from 2.44 billion yuan in 2024 to 2.41 billion yuan in 2027 [8]. - **Sofas**: Revenue is forecasted to grow from 719 million yuan in 2024 to 883 million yuan in 2027, reflecting a recovery in demand [8]. Market and Channel Analysis - **Sales Channels**: The company reported revenue from distribution stores, bulk business, and online sales of 32.1 billion yuan, 34 billion yuan, and 19.8 billion yuan, respectively, with online sales growing by 9.9% [7][8]. - **Geographical Performance**: Domestic sales decreased by 6.4% to 64.7 billion yuan, while international sales increased by 27.5% to 21.3 billion yuan [7][8]. Valuation Metrics - **Price-to-Earnings (PE) Ratio**: The PE ratio is projected to decrease from 18 in 2024 to 15 in 2027, indicating a potential increase in valuation attractiveness [2][9]. - **Price-to-Book (PB) Ratio**: The PB ratio is expected to decline from 1.58 in 2024 to 1.24 in 2027, suggesting a strengthening balance sheet [2][9].