DEHUA TB(SZ:002043) Minsheng Securities·2024-07-31 07:30Investment Rating - The report maintains a "Recommended" rating for the company, with projected net profits for 2024-2026 at 726 million, 874 million, and 1 billion yuan respectively, corresponding to PE ratios of 10, 9, and 8 times [25][68]. Core Insights - The company is positioned as a leader in the artificial board industry, with significant value highlighted due to its comprehensive supply chain and multi-channel layout [24][25]. - The custom home furnishing market is evolving from single-item offerings to full-home customization, with a penetration rate exceeding 50% in 2023, indicating a shift towards brand strength, channel capability, and design productivity [11][25]. - The home building materials market outlook is positive, driven by urbanization and increasing demand for home improvement, with estimates suggesting a market size of approximately 3.9 trillion yuan by 2024 [11][25]. Summary by Sections 1. Artificial Board Market - The artificial board market has seen a significant reduction in the number of enterprises since 2020, leading to increased average production capacity [65][78]. - The main products include plywood, fiberboard, and particleboard, which are essential for furniture manufacturing and construction [70][72]. 2. Custom Home Furnishing - The custom home furnishing sector is experiencing rapid growth, with a market shift towards integrated solutions that include various home components [86][102]. - The company has established a strong presence in the custom home market, with revenue from this segment reaching 2.117 billion yuan in 2023, accounting for 23.35% of total revenue [125][126]. 3. Financial Performance - The company reported a revenue of 9.063 billion yuan in 2023, a year-on-year increase of 1.63%, despite a challenging industry environment [49][68]. - The net profit for 2023 was 689 million yuan, reflecting a substantial growth of 54.66% compared to the previous year, attributed to improved internal controls and cost management [38][49]. 4. Supply Chain and Channel Strategy - The company has developed a robust supply chain and multi-channel strategy, with over 4,000 specialized stores established across various product lines by the end of 2023 [25][131]. - The focus on rural and online markets, along with partnerships with furniture manufacturers, has strengthened the company's distribution network [25][131]. 5. Market Trends and Consumer Behavior - The report highlights a shift in consumer preferences towards environmentally friendly and high-quality materials, with a growing demand for personalized home solutions [121][122]. - The urbanization rate in China has increased significantly, leading to evolving consumer demands for home decoration and improvement [106][122].