DEHUA TB(002043) 天风证券·2025-04-25 09:25Investment Rating - The report maintains a "Buy" rating for the company, with a target price not specified [6] Core Views - The company achieved a revenue of 1.27 billion in Q1 2025, a year-on-year decrease of 14.3%, while the net profit attributable to the parent company increased by 14.22% to 101 million [1] - The company plans to distribute a total cash dividend of 493 million for the year, resulting in a dividend payout ratio of 84% and a dividend yield of 5.4% based on the closing price on April 24 [1] - The projected net profit for the company from 2025 to 2027 is estimated at 750 million, 870 million, and 1 billion respectively, with corresponding P/E ratios of 12.2, 10.6, and 9.1 [1] Revenue and Profit Analysis - In 2024, the company reported a revenue of 9.189 billion, a slight increase of 1.39% year-on-year, while the net profit attributable to the parent company decreased by 15.11% to 585 million [5] - The Q4 2024 revenue was 2.725 billion, down 18.2% year-on-year, with a significant decline in net profit due to increased impairment losses [1][5] Business Segment Performance - The decorative materials and custom home business segments generated revenues of 7.4 billion and 1.7 billion respectively in 2024, with year-on-year growth of 8% and a decline of 18.7% [2] - The overall gross margin for the company in 2024 was 18.1%, a decrease of 0.32 percentage points year-on-year, but improved to 20.9% in Q1 2025, an increase of 2.99 percentage points [2] Distribution and Market Strategy - The company has accelerated its expansion into rural markets, with a total of 5,522 decorative materials stores, including 2,152 in rural areas as of 2024 [3] - The company has established partnerships with over 20,000 local custom furniture factories to enhance its distribution network [3] Cost Management and Financial Health - The company successfully reduced its expense ratio to 5.99% in 2024, down 0.79 percentage points year-on-year, primarily due to improved cost control [4] - The net profit margin for 2024 was 6.48%, a decrease of 1.36 percentage points year-on-year, while the net profit margin for Q1 2025 improved to 7.98% [4]