OPPEIN(603833) Huafu Securities·2024-10-11 00:00Investment Rating - The report initiates coverage with a "Buy" rating for the company [6][28]. Core Views - The company has announced a fixed dividend plan for the next three years, committing to distribute at least RMB 1.5 billion annually, which reflects a strong emphasis on shareholder returns and aims to alleviate market concerns regarding performance uncertainty [2][14]. - The company is undergoing operational adjustments due to a challenging external environment in real estate and consumption, leading to a decline in performance metrics such as revenue and net profit in the first half of 2024 [3][16]. - The strategic shift towards a comprehensive home furnishing model is seen as compatible with traditional single-product sales, addressing the long-term trends in the housing market [4][19]. - Profit forecasts for 2024-2026 indicate a gradual recovery in net profit, with expected figures of RMB 2.58 billion, RMB 2.59 billion, and RMB 2.72 billion respectively, despite initial declines [5][23]. Summary by Sections 1. Cash Position and Dividend Capability - The company has a robust cash position with approximately RMB 9 billion available as of June 30, 2024, and plans to allocate a total of RMB 4.5 billion in dividends over the next three years [2][14][15]. 2. Operational Adjustments - The company is facing a challenging market environment, with a reported revenue decline of 12.8% and a net profit drop of 12.6% in the first half of 2024. In response, it is implementing several internal reforms to enhance its operational efficiency [3][16][19]. 3. Long-term Strategic Direction - The transition to a retail home furnishing model is recognized as a strategic move that aligns with market trends, allowing for compatibility with existing single-product sales models. This approach is expected to address the evolving consumer preferences in the housing market [4][19]. 4. Profit Forecast and Investment Recommendations - The projected net profits for 2024-2026 are RMB 2.58 billion, RMB 2.59 billion, and RMB 2.72 billion, with corresponding growth rates of -15.1%, 0.5%, and 4.9%. The current price-to-earnings ratio is positioned favorably compared to industry peers, suggesting potential for valuation recovery [5][23][28].