FSM(SZ:002818) Bei Jing Shang Bao·2025-07-30 08:17Core Viewpoint - Chengdu Fusenmei Home Co., Ltd. is facing significant challenges with declining performance, highlighted by a 13.19% drop in revenue and a 21.06% decrease in net profit for Q1 2025, while simultaneously maintaining a high dividend payout ratio of 117.11% for 2024, which exceeds its annual net profit [1][4][7] Financial Performance - In Q1 2025, Fusenmei reported revenue of 330 million yuan, down 13.19% year-on-year, and net profit of 148 million yuan, down 21.06% year-on-year [4] - Revenue has been declining for six consecutive quarters since Q4 2023, with year-on-year declines of 6.74%, 2.46%, 7.95%, 10.08%, and 4.19% for Q4 2023 and the four quarters of 2024 [7] - Despite a 6.18% decline in revenue and a 14.39% drop in net profit for 2024, Fusenmei distributed 808 million yuan in cash dividends, marking a dividend payout ratio of 117.11% [7] Dividend Policy - Fusenmei's high dividend payout is seen as a sign of "value release anxiety," indicating a lack of growth projects and a strategy to maintain market value by returning cash to shareholders [7][10] - Since its listing in 2016, Fusenmei has distributed a total of 4.668 billion yuan in dividends, with a payout ratio close to 70%, and over 2.4 billion yuan in dividends in the last three years, accounting for 88% of the company's net profit during that period [7][10] Market Dependency - Fusenmei's revenue is heavily reliant on its core market, with 87.20% of its total revenue coming from market leasing and services, which also saw a decline of 4.52% in 2024 [8] - The company has shown a strong dependency on the Chengdu market, with revenue from this region accounting for over 95% of total revenue from 2021 to 2024, peaking at 97.76% in 2024 [8][9] Industry Challenges - The home furnishing industry is facing intense competition, with a reported 3.85% decline in sales for large-scale building materials and home furnishing markets in 2024 [11] - The crisis in the home furnishing industry is attributed to the end of real estate dividends and the failure of traditional business models, necessitating a shift towards asset-light, service-oriented, and digital strategies [11] Strategic Initiatives - Fusenmei is actively seeking transformation by enhancing its online presence, with the "Fusenmei Online 3.0" program achieving over 6 million customer visits and 320 million yuan in online payments in 2024 [12] - Future strategies include integrating design, material selection, construction, and delivery into a closed loop, creating a content ecosystem around home living, and embedding digital technology into operations [12]