SFY(002572) ZHONGTAI SECURITIES·2024-08-31 03:02Investment Rating - The report assigns a "Buy" rating for the company, expecting a relative increase of over 15% in stock price compared to the benchmark index over the next 6 to 12 months [6]. Core Views - The company has demonstrated strong performance with a notable increase in average transaction value despite industry pressures, indicating significant improvement in profitability [2][5]. - The company's integrated strategy is deepening, leading to a substantial increase in customer spending, while the optimization of its brand matrix provides clear positioning for future growth [5][6]. - The report anticipates a downward adjustment in profit forecasts due to industry pressures, projecting net profit for the company to reach 1.82 billion in 2024, with corresponding P/E ratios of 9, 8, and 7 for the years 2024 to 2026 [5][6]. Financial Performance Summary - The company achieved a revenue of 11,666 million in 2023, with a year-on-year growth rate of 4%. Projections for 2024 estimate revenue to reach 11,922 million, reflecting a growth rate of 2% [1]. - Net profit for 2023 is reported at 1,261 million, with a year-on-year growth of 19%. The forecast for 2024 anticipates a net profit of 1,390 million, indicating a growth of 10% [1]. - The company's earnings per share (EPS) is projected to increase from 1.31 in 2023 to 1.44 in 2024, with further growth expected in subsequent years [1][4]. Business Segment Performance - The Milan brand and integrated channel have emerged as significant growth drivers, with the company achieving a revenue of 44.43 billion in the first half of 2024, reflecting a year-on-year increase of 3.8% [1]. - The company has expanded its dealer network, with 1,811 dealers for the Simi brand, and has made strides in international markets, covering over 20 countries [1]. - The report highlights that the cabinet and wooden door segments are experiencing rapid growth, contributing positively to overall revenue [1]. Operational Efficiency - The report notes improvements in operational efficiency, with cash flow from operations reported at 2,654 million in 2023, although it is projected to decrease significantly in 2024 [4]. - The company has seen a reduction in inventory turnover days, indicating enhanced inventory management practices [4].