The company released a three-quarter report

The company's 24Q3 revenue 3.1 billion decreased by 6%; net profit reduced by 0.13 billion by 55%; net profit less than 0.14 billion after deducting 54%; the company's 24Q1-3 revenue 9.5 billion decreased by 3%, net profit due to mother decreased by 36%, net profit less than 0.73 billion, net profit reduced by 31% after deducting 0.82 billion; 24Q1-3 company gross profit margin 29.33% decreased by 5.66pct; net profit margin 7.77% reduced 4.29pct

The company plans to change its name to Easyhome

According to the company's strategic planning and operating needs, to further focus on the main business and enhance the brand image, the company plans to change the Chinese name from “Easyhome New Retail Group Co., Ltd.” to “Easyhome New Retail Group Co., Ltd.”, and the stock abbreviation from “Easyhome” to “Easyhome”; this name change reflects changes in development strategy and promotion effects in recent years:

1. Smart home products have become the most important business category in the company's home furnishing store. The company accelerated the transformation and upgrading of the original home store to a smart home experience center, and planned and operated the smart home category on a large scale in the core area of the store, which not only met consumers' needs for personal experience of smart home products, but also built a comprehensive smart home ecosystem integrating display, experience and sales. In August 2023, the company's first smart home experience center, the Tongzhou store, officially opened. As of September 30, 2024, 11 smart home experience centers have been opened nationwide, with an operating area of 44.0.03 million square meters.

2. The company's self-operated smart home service platform business is developing rapidly. The company has built a “actually smart home” smart home service platform. First, by constructing a “smart home brain,” “digital home terminal,” and “8 smart home subsystems,” we will establish a general smart home system across brands, ecosystems, and terminals to create a new smart life scenario integrating the trinity of “person, car, and home.” Second, we have continuously improved the supply chain system and established strategic partnerships with many smart car, smartphone, and smart home brands. By the end of September 2024, there were more than 300 cooperative brands that were actually connected to Smart Home, and more than 0.3 million connected devices. Third, through the export supply chain, a total of 138 stores have been opened in 15 provinces and cities across the country, including 7 “people, cars, and family” integrated stores that have already been opened and prepared.

3. The company's AI design platform has broad prospects for development. The company and Alibaba Network have jointly built the AI design platform “Actual Designer”, which focuses on providing AI design tools, 3D business, and accurate marketing services for customers in the industry. Actually, the designer developed its own AI algorithm to assist manual operation to automate model classification and initial screening. The accuracy rate of judging high-quality models reached 83%, greatly reducing labor costs; self-developed 3D landscape changing supports live streaming on mobile phones, reducing usage costs by 50%. As of September 30, 2024, the designer had 17 million registered users worldwide, 36 million design cases, and 15 million model materials.

This name change will help the public to more clearly recognize the company's expertise and innovation in smart home products and services, and promote the transformation and upgrading of the company's business model.

Double 11's global target is 25.1 billion: Digital marketing and innovation activities lead a new wave of home consumption. This year, the “Double 11” company's global transaction target is 25.1 billion, an increase of 20%. For this year's “Double 11", the company prepared 0.1 million cash vouchers worth up to 600 yuan, selected more than 100 popular products, and launched 1,500 offline events at more than 400 stores across the country.

In terms of live streaming events, special live streaming events such as “Lao Wang Is Here” and “CEO Price Arrived” continued to increase this year, providing dealers with more exposure opportunities. In addition, the company expects to invest more than 20 million yuan in omni-channel promotion, and is expected to achieve more than 1 billion impressions, fully empowering manufacturers. On October 29, “Double 11” and “Here Comes Lao Wang” were broadcast for the first time this year. The live broadcast received 5.08 million viewers and 0.011 million live broadcast orders.

Adjust profit forecasts to maintain “buy” ratings

Based on 24Q1-3 performance, uncertainties in shopping mall traffic and a relatively sluggish overall consumption environment; we adjusted the profit forecast and estimated that the company's EPS for 24-26 will be 0.16 yuan, 0.17 yuan, and 0.19 yuan (the original value was 0.19/0.20/0.24 yuan), and PE will be 17X, 16X, and 15X, respectively.

Risk Warning: Home Furnishing Store Business Development Risks; Rising Raw Material Prices; Macroeconomic Fluctuations