SFY(SZ:002572) EBSCN·2024-08-29 07:11Investment Rating - The report maintains a "Buy" rating for the company [2][7]. Core Insights - The company's "multi-brand, all-channel, all-category" strategy has effectively improved profitability in the first half of 2024, with revenue reaching 4.93 billion yuan, a year-on-year increase of 3.9%, and net profit attributable to shareholders of 560 million yuan, up 13.0% year-on-year [3][5]. - The main brand, Sophia, showed steady revenue growth, with the wardrobe business generating 3.91 billion yuan (up 0.8% year-on-year), the cabinet business 610 million yuan (up 26.8%), and the door business 260 million yuan (up 17.7%) [5]. - The company has signed strategic partnerships with several top 100 real estate clients in response to the "guarantee delivery" policy, expanding its overseas market presence with 27 overseas distributors covering over 20 countries [5][6]. Financial Performance - In the first half of 2024, the company's gross margin was 35.8%, an increase of 1.0 percentage points year-on-year, driven by organizational efficiency improvements and scale effects in the cabinet and door segments [6]. - The company’s operating expenses ratio was 20.9%, down 0.8 percentage points year-on-year, with a notable reduction in financial expenses due to optimized borrowing structures [6]. - The report forecasts revenue for 2024-2026 to be adjusted to 12.43 billion, 13.47 billion, and 14.84 billion yuan respectively, with net profit estimates for 2025 and 2026 raised to 1.65 billion and 1.86 billion yuan [7][8]. Market Strategy - The company is actively responding to the "old-for-new" policy in home furnishings, which is expected to stimulate demand in the existing housing market [5]. - The company has been expanding its product offerings since 2022, including cabinets, system windows, bathrooms, and kitchen appliances, to capture high-frequency demand in the renovation market [5]. - The report highlights the company's ongoing efforts to enhance collaboration with installation companies and develop new business models to further penetrate the market [5].