索菲亚：整家战略有效落地，盈利能力逆势提升

Investment Rating - The report maintains a "Buy" rating for the company [2][4] Core Insights - The company achieved a revenue of 4.93 billion yuan in H1 2024, representing a year-on-year increase of 3.9%, and a net profit attributable to shareholders of 560 million yuan, up 13.0% year-on-year [1] - The company's integrated home strategy is effectively implemented, leading to improved profitability despite market challenges [1] - The multi-brand and full-category strategy has enhanced the average transaction value, which increased to 23,679 yuan, a 27.0% year-on-year rise [1] Financial Performance - In Q2 2024, the company reported a revenue of 2.82 billion yuan, down 4.1% year-on-year, but net profit increased by 1.0% to 400 million yuan [1] - The gross margin improved significantly, reaching 38.1% in Q2 2024, an increase of 2.4 percentage points year-on-year [1][4] - The company’s operating cash flow for Q2 2024 was 718 million yuan, indicating healthy cash flow management [4] Brand Performance - The main brand, Sophia, generated 4.443 billion yuan in revenue in H1 2024, with a 3.9% year-on-year growth [1] - Milan's revenue surged by 42.6% year-on-year to 239 million yuan in H1 2024, supported by the launch of integrated products [1] - The company continues to expand its store network, with 2,552 Sophia stores as of the end of Q2 2024, a decrease of 175 stores from the beginning of the year [1] Category Insights - The integrated home strategy has positively impacted product category performance, with cabinets and wooden doors showing significant revenue growth [1] - Revenue from cabinets, cabinet accessories, and wooden doors reached 3.909 billion yuan, 610 million yuan, and 263 million yuan respectively, with year-on-year growth rates of 0.8%, 26.8%, and 17.7% [1] Future Projections - The company forecasts net profits of 1.39 billion yuan, 1.51 billion yuan, and 1.63 billion yuan for 2024, 2025, and 2026 respectively, with corresponding P/E ratios of 9.1X, 8.4X, and 7.8X [4][5]