UE(603600) 华安证券·2025-04-26 14:23Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company reported a revenue of 4.749 billion yuan in 2024, representing a year-on-year growth of 34.22%, while the net profit attributable to shareholders was 296 million yuan, a slight decline of 0.56% year-on-year. In Q4 2024, the revenue reached a historical high of 1.359 billion yuan, with a year-on-year increase of 30.94%, but the net profit decreased by 17.67% year-on-year. In Q1 2025, the revenue was 1.01 billion yuan, up 17.93% year-on-year, and the net profit increased by 34.81% year-on-year [3][4][5] Summary by Sections Financial Performance - In 2024, the company achieved revenue of 47.49 billion yuan, with a year-on-year growth of 34.22%. The net profit attributable to shareholders was 2.96 billion yuan, down 0.56% year-on-year. The Q4 2024 revenue was 13.59 billion yuan, up 30.94% year-on-year, while the net profit was 0.71 billion yuan, down 17.67% year-on-year. For Q1 2025, the revenue was 10.1 billion yuan, up 17.93% year-on-year, and the net profit was 0.58 billion yuan, up 34.81% year-on-year [3][4] Sales Growth - The company experienced strong sales growth driven by new customers, channels, and projects. In 2024, the revenue from various product lines included office chairs (3.416 billion yuan), sofas (645 million yuan), massage chairs (240 million yuan), and others, with significant year-on-year increases across the board. Domestic revenue was 1.122 billion yuan, up 25.89%, while overseas revenue was 3.606 billion yuan, up 36.83% [4][5] Strategic Investments - The company is strategically investing in brand development and new business areas, which has temporarily impacted net profit margins. The gross margin for 2024 was 21.64%, down 1.24 percentage points year-on-year. The net profit margin was 6.24%, down 2.18 percentage points year-on-year. The first quarter of 2025 saw a gross margin of 20.65%, down 1.47 percentage points year-on-year, but the net profit margin improved to 5.7%, up 0.71 percentage points year-on-year [5][6] International Expansion - The company has established two overseas production bases in Vietnam and Romania, enhancing its competitive advantage. The Vietnam base, operational since 2018, has matured in terms of customer resources and production capacity. The Romanian base, operational since 2023, is expanding its capacity to support market growth in Europe and the U.S. [6][7] Future Outlook - The company is transitioning from a primarily export-oriented model to a balanced approach of domestic and international sales, alongside developing its own brand. Revenue projections for 2025-2027 are 56.25 billion yuan, 64.25 billion yuan, and 71.16 billion yuan, respectively, with corresponding net profits of 3.63 billion yuan, 4.39 billion yuan, and 5.18 billion yuan [8][10]