SFY(SZ:002572) Changjiang Securities·2024-09-04 01:39Investment Rating - The investment rating for the company is "Buy" and is maintained [4][6]. Core Views - The company achieved revenue of 49.29 billion yuan and a net profit attributable to shareholders of 5.65 billion yuan in H1 2024, representing a year-on-year increase of 4% and 13% respectively [3][4]. - In Q2 2024, the company reported a revenue of 28.18 billion yuan, with a year-on-year decline of 4%, while the net profit attributable to shareholders was 3.99 billion yuan, showing a slight increase of 1% [3][4]. - The integrated home furnishing and Milan brand contributed to the overall revenue resilience, with the integrated home furnishing segment growing by 44% year-on-year in H1 2024 [3][4]. Summary by Sections Revenue Performance - In Q2 2024, revenue from traditional retail, integrated home furnishing, and bulk sales saw year-on-year changes of -14%, +33%, and +7% respectively, with integrated home furnishing continuing its strong growth [3][4]. - The number of cooperative construction companies in the integrated home furnishing division increased by 35 to 256, covering 189 cities and regions nationwide [3][4]. Brand Contribution - In Q2 2024, the year-on-year performance of brands was as follows: Sophia -6%, Milan +27%, and Huahai -10%, with Milan continuing to expand its store presence [3][4]. Profitability - The gross margin improved by 2.4 percentage points in Q2 2024, driven by a higher proportion of core customized products and ongoing cost reduction efforts [3][4]. - The net profit margin attributable to shareholders increased by 0.7 percentage points in Q2 2024 [3][4]. Strategic Outlook - The company is expected to maintain resilient performance in retail, with contributions from kitchen cabinets, wooden doors, and home products [4]. - The integrated home furnishing segment is anticipated to continue its high growth, supported by deepening collaborations with construction companies [4]. - The company plans to sustain its high dividend payout ratio, with an expected dividend yield of 7.9% if the 2023 payout ratio of 75% is maintained [4].