SFY(002572)2024-10-31 10:18Investment Rating - The report maintains a "Recommended" rating for the company [4] Core Views - The company reported a revenue of 7.66 billion yuan for the first nine months of 2024, a year-on-year decrease of 6.6%, and a net profit attributable to shareholders of 0.92 billion yuan, down 3.2% year-on-year. In Q3 2024, revenue was 2.73 billion yuan, a decline of 21.1%, with a net profit of 0.36 billion yuan, also down 21.1% year-on-year [1][2] - Retail revenue is temporarily under pressure, while the integrated and bulk channels are steadily growing. The company's main brands, Sofia and Milan, achieved revenues of 6.89 billion yuan and 0.37 billion yuan respectively, with year-on-year changes of -6.8% and +14.9%. The main brand maintained stable average transaction values despite market demand decline, reflecting strong brand power and customer base [1][2] - The company is proactively positioning itself in the existing market, leveraging its first-mover advantage. As the real estate market faces downward pressure, the demand for customized home furnishings is shifting from incremental to stock-driven. The company has preemptively deployed products and channels to cater to renovation needs for existing and second-hand homes [1][2] Financial Performance Summary - For the first nine months of 2024, the company's gross margin was 35.8%, an increase of 0.2 percentage points year-on-year, indicating improved cost control and increased average transaction values. The net profit margin was 12.0%, up 0.4 percentage points year-on-year, with Q3 2024 net profit margin at 13.1%, unchanged year-on-year [2] - The company is expected to achieve earnings per share (EPS) of 1.36 yuan, 1.49 yuan, and 1.62 yuan for the years 2024 to 2026, respectively. The closing price on October 30 was 19.01 yuan, corresponding to price-to-earnings (PE) ratios of 14, 13, and 12 times for the respective years [2][3]