SFY(SZ:002572) Guolian Securities·2024-08-29 00:40Investment Rating - The investment rating for the company is "Buy" [4] Core Views - The company reported a revenue of 4.929 billion yuan in H1 2024, representing a year-on-year increase of 3.91%. The net profit attributable to shareholders was 565 million yuan, up 13.00% year-on-year [2][6] - The Milan brand continues to penetrate lower-tier markets, with both direct sales and installation companies driving growth, achieving over 40% revenue growth [2][6] - The company aims to maintain a four-pronged strategy focusing on retail, installation companies, e-commerce, and packaged solutions to provide comprehensive renovation lifecycle products and services [2][6] Financial Performance - In H1 2024, the company achieved a gross margin increase of 0.97% year-on-year, with a net profit margin increase of 1.22% year-on-year, primarily due to optimized borrowing structure and improved gross profit margins from export and other businesses [2][6] - The company expects revenues of 11.768 billion yuan, 13.109 billion yuan, and 14.522 billion yuan for 2024, 2025, and 2026, respectively, with year-on-year growth rates of 0.87%, 11.40%, and 10.78% [6][7] Business Strategy - The company is actively pursuing a "whole home" strategy amidst pressures in the new housing market and aims to explore the stock market direction, focusing on renovation needs in the existing housing market [6][7] - The company has reported a significant increase in revenue from the installation channel, with a year-on-year growth of 43.63% in H1 2024 [6][7] Market Position - The company is positioned to capitalize on the demand for renovation in the existing housing market, with a strategic focus on product channel deployment for second-hand housing [6][7] - The company has seen a notable increase in revenue from its Milan brand, which has achieved a 42.59% year-on-year growth in H1 2024 [6][7]