SFY(SZ:002572) SINOLINK SECURITIES·2024-10-31 02:55Investment Rating - The report maintains a "Buy" rating for the company [2][8]. Core Insights - The company reported a revenue of 7.66 billion RMB for the first three quarters of 2024, a year-on-year decrease of 6.7%, and a net profit attributable to shareholders of 0.92 billion RMB, down 3.2% year-on-year [2]. - In Q3 2024, the company achieved a revenue of 2.73 billion RMB, reflecting a significant decline of 21.1% year-on-year, with a net profit of 0.36 billion RMB, also down 21.2% year-on-year [2]. - The company is facing operational pressure due to a decline in industry demand, but it is leveraging its whole-home strategy to maintain sales momentum [2]. Revenue and Profit Analysis - For Q1-Q3 2024, the company's gross margin was 35.8%, a slight increase of 0.2 percentage points year-on-year, while Q3 gross margin was 35.9%, down 0.9 percentage points year-on-year [2]. - The company’s sales, management, and R&D expense ratios for Q1-Q3 2024 were 9.6%, 6.9%, and 3.7%, respectively, with Q3 ratios at 8.9%, 6.8%, and 3.5% [2]. - The net profit margin for Q3 2024 was 13.8%, remaining stable year-on-year [2]. Strategic Outlook - The company is committed to its "multi-brand, full-category, full-channel" whole-home development strategy, which is expected to support steady growth amid industry competition [2]. - The company anticipates that the implementation of furniture consumption subsidy policies will enhance its market share and drive revenue growth [2]. Earnings Forecast and Valuation - The projected EPS for 2024-2026 is 1.28, 1.42, and 1.58 RMB, respectively, with corresponding PE ratios of 15, 13, and 12 times [2].