China Postal Securities: Lianmei Holdings' heating business maintains steady growth, maintaining a "buy" rating.

China Post Securities research report points out that Lianmei Holdings' heating business is growing steadily, while the media business is under overall pressure. In 2025, the company's revenue was 32.4 billion yuan, a year-on-year decrease of 7.7%; net profit attributable to mother was 6.9 billion yuan, a year-on-year increase of 4.1%; in 2026 Q1, the company's revenue was 15.8 billion yuan, a year-on-year decrease of 6.8%; net profit attributable to mother was 5.3 billion yuan, a year-on-year decrease of 13.8%. Profit is rebounding and cost ratio is basically stable. In 2025, the company's average heating area was approximately 78.24 million square meters, and the networked area was approximately 110.02 million square meters. During the "14th Five-Year Plan" period, the company can rely on Shenyang's urban renewal and old city transformation market to build new and reconstruction centralized heating projects, achieving further growth in heating and networked areas. Zhuoxun Media's operation is under pressure. In 2025 and 2026 Q1, net profit attributable to mother were 0.1 and 0.06 billion yuan respectively, a year-on-year decrease of 83.9% and 72.6% respectively; but the company has already achieved nationwide coverage of railway media, established a digital media platform covering major cities across the country, and deepened its digital outdoor media business. It is expected to return to profitability through cost reduction and efficiency enhancement. The company is forecasted to have revenues of 33.6/33.3/33.8 billion yuan and net profits attributable to mother of 7.7/7.9/8.5 billion yuan respectively in 2026-2028, with corresponding PEs of 20/19/18 times, maintaining a "hold" rating.