SFY(SZ:002572) KAIYUAN SECURITIES·2024-09-03 06:30Investment Rating - Investment rating is maintained as "Buy" [2] Core Views - The company achieved stable revenue growth in H1 2024, with a revenue of 4.93 billion yuan, representing a year-on-year increase of 3.9% [2][3] - The net profit attributable to the parent company for H1 2024 was 560 million yuan, up 13.0% year-on-year, while the non-recurring net profit was 530 million yuan, an increase of 13.4% [2][3] - The company is expected to benefit from the implementation of its whole-home strategy, which is anticipated to drive an increase in average transaction value [2] Financial Performance - In H1 2024, the gross profit margin improved to 35.8%, up 1.0 percentage points, while the net profit margin increased to 12.1%, up 1.2 percentage points [3] - The company reported a significant decline in operating cash flow, with a negative cash flow of 300 million yuan, down 121.2% year-on-year, primarily due to changes in distributor assessment criteria [3] Revenue Breakdown - The main brand, Sophia, generated revenue of 4.44 billion yuan in H1 2024, a 3.9% increase, with an average transaction value of 23,679 yuan, up 27.0% [4] - The Milan brand saw a revenue increase of 42.6% to 240 million yuan, while the cabinet and wooden door segments also showed strong growth [4] Financial Projections - Projected revenues for 2024, 2025, and 2026 are 12.706 billion yuan, 13.806 billion yuan, and 14.977 billion yuan, respectively, with year-on-year growth rates of 8.9%, 8.6%, and 8.5% [5] - The projected net profit for 2024 is 1.391 billion yuan, reflecting a year-on-year growth of 10.3% [5] Valuation Metrics - The company’s P/E ratio is projected to decrease from 12.5 in 2024 to 10.1 in 2026, indicating an attractive valuation [5][7] - The projected ROE for 2024 is 16.4%, slightly down from 18.2% in 2023 [7]