SFY(002572) Huaan Securities·2024-10-28 23:00Investment Rating - The report assigns a "Buy" rating for the company, marking its first coverage [1]. Core Views - The company is a leading player in the whole-house customization sector, continuously deepening its "multi-brand, full-category, all-channel" strategy [1][10]. - The company has established a clear brand matrix with four main brands: Sophia, Simi, Huahai, and Milan, each targeting different consumer segments based on price [1][10]. - The company has expanded its product categories from wardrobes to include kitchen cabinets, soft furnishings, furniture, doors, windows, wall panels, flooring, household goods, appliances, and bathrooms, achieving full coverage of home categories [1][10]. - The retail channel remains the primary business channel, while the company is also focusing on the whole-house channel and actively expanding bulk business channels to diversify revenue sources [1][10]. Summary by Sections Overview - The company is committed to whole-house customization and has developed a multi-brand, full-category, and all-channel approach [1][10]. - The company has a clear shareholding structure and an outstanding management team [1][10][13]. - The multi-brand and multi-channel strategy is driving growth and restoring profitability [1][10][14]. Industry - Recent real estate policy measures are expected to boost home consumption, benefiting leading companies in the sector [1][10]. - The home market is steadily growing, with leading companies expected to gain market share [1][10]. Company - The company has a diversified brand and channel layout, leading in smart manufacturing [1][10]. - The four major brands cater to different consumer needs, with a focus on whole-house customization to drive customer value and category expansion [1][10][14]. - The company is optimizing its traditional channels while making significant progress in emerging channels [1][10][14]. - The company is advancing its digital transformation with a comprehensive digital operation platform, leading the industry in technology levels [1][10][14]. Profit Forecast and Investment Advice - The company is expected to see revenue growth from 121.03 billion yuan in 2024 to 139.79 billion yuan in 2026, with corresponding net profits of 13.69 billion yuan and 16.78 billion yuan [3][5]. - The earnings per share (EPS) are projected to be 1.42 yuan in 2024, increasing to 1.74 yuan by 2026, with price-to-earnings (P/E) ratios of 14.00 and 11.42 respectively [3][5].