Fuanna(002327) 东海证券·2024-07-03 09:00Investment Rating - The report gives a "Buy" rating for the company, marking its first coverage [6]. Core Views - The company has demonstrated solid performance with a focus on high gross and net profit margins, leveraging its brand assets in the traditional consumer sector. The stock price has risen against the trend in 2023, supported by strong fundamentals and performance realization. Future growth is expected through store efficiency recovery and accelerated store expansion [1][6]. Summary by Sections Company Performance - The company has shown steady revenue growth, with a 2023 gross margin of 55.63%, an increase of 3.63 percentage points from 2019. The net profit margin reached 18.88% in 2023, with a consistent marketing expenditure and a decline in management fee ratio to 3.74% [3][6]. - The company has maintained a high dividend payout ratio of over 90% for the past three years, with a 2023 payout ratio of 95%, resulting in a dividend yield of 6.72% [3]. Home Textile Industry - The home textile market was valued at 128 billion yuan in 2022, with a CAGR of 6% from 2009 to 2022. The demand is driven by various consumption scenarios, with a strong correlation between market size and marriage registrations [4]. - The industry is characterized by a pyramid structure, with leading companies enjoying advantages in brand strength and offline channels. The market concentration is expected to increase as top players leverage their brand and channel strengths [4]. National Expansion and Digitalization - The company is focusing on national expansion and enhancing operational efficiency through digitalization. It has centralized procurement with leading suppliers and established a robust supply chain system, maintaining a production capacity utilization rate of around 90% [5][6]. - The company has improved its human efficiency, with revenue per employee increasing from 110,000 yuan in 2018 to 140,000 yuan in 2023, aided by the implementation of various digital systems [5][91]. Profit Forecast and Investment Recommendations - The company is expected to achieve steady growth in net profit, with forecasts of 622.21 million yuan, 676.64 million yuan, and 726.68 million yuan for 2024, 2025, and 2026, respectively, reflecting growth rates of 8.76%, 8.75%, and 7.40% [6][99]. - The anticipated P/E ratios for the next three years are 14, 13, and 12 times, indicating a favorable valuation outlook [6].