SFY(SZ:002572) Xin Lang Cai Jing·2025-09-15 00:36Core Viewpoint - The company reported a decline in revenue and net profit for the first half of 2025, with a significant drop in profitability metrics, indicating challenges in both retail and bulk sales channels [1][2]. Revenue Summary - The company achieved revenue of 4.551 billion yuan in H1 2025, down 8% year-on-year, with Q2 revenue at 2.513 billion yuan, a decline of 11% [1][2]. - Revenue breakdown by channel for H1 2025 shows traditional retail down 7%, integrated home down 13%, bulk sales down 12%, while exports increased by 39% [2]. - Brand performance in H1 2025 revealed declines for Sofia (-7%), Milan (-27%), and Huahai (-22%), while other brands like Simil showed a 9% increase [2]. Profitability Summary - The company faced pressure on gross and net profit margins in Q2 2025, with net profit margin down by 1.9 percentage points and adjusted net profit margin down by 2.3 percentage points year-on-year [2]. - Gross margin for Q2 decreased by 2.3 percentage points, while operating expenses showed a slight increase of 0.8 percentage points [2]. - For H1 2025, overall gross margin decreased by 1.4 percentage points, with retail gross margin increasing by 0.6 percentage points, but bulk sales gross margin decreased by 8.8 percentage points [2]. Store Dynamics - The company experienced a net change in store count for H1 2025, with Sofia adding 14 stores, Simil losing 26, Huahai losing 19, and Milan adding 13, resulting in total stores of 2,517, 135, 260, and 572 respectively [2]. Future Outlook - The company aims to focus on retail as the core of its strategy, with potential growth in Milan and integrated home segments, as well as expansion in accessory products [3]. - The average transaction value is expected to increase, with a target of 23,370 yuan in 2024, up from 19,619 yuan in 2023, despite a decrease to 22,340 yuan in H1 2025 due to marketing strategies and consumer environment [3]. - The integrated home segment is seeing improved operational quality, with partnerships with 270 and 2,425 construction companies, covering 211 and 1,450 market areas respectively [3]. Brand and Export Strategy - Milan targets the younger demographic and has significant growth potential through store openings and product matrix improvements [4]. - The company has established 26 overseas distributors across 23 countries, with ongoing collaborations for customized home solutions in 31 countries [4]. - The company continues to optimize its structure and aims to maintain a high dividend yield, with a projected dividend of 960 million yuan for 2024, representing 88% of adjusted net profit [4].