SFY(SZ:002572) Huaan Securities·2024-11-01 02:31Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company reported a challenging performance in Q3 2024, with expectations for the effectiveness of stimulus policies [1] - For the first three quarters of 2024, the company achieved operating revenue of 7.656 billion, a year-on-year decrease of 6.64%, and a net profit attributable to shareholders of 922 million, down 3.24% year-on-year [1] - The company’s four major brands cover diverse market demands, with the Milan brand showing rapid growth [1] Summary by Relevant Sections Financial Performance - In Q3 2024, the company achieved operating revenue of 2.726 billion, a year-on-year decrease of 21.13%, and a net profit of 357 million, down 21.16% year-on-year [1] - The gross profit margin for the first three quarters of 2024 was 35.79%, an increase of 0.17 percentage points year-on-year [1] - The net profit margin for the first three quarters of 2024 was 12.04%, an increase of 0.42 percentage points year-on-year [1] Brand Performance - The Sofia brand had 1,805 dealers and 2,543 stores, with revenue of 6.890 billion for the first nine months of 2024, down 6.84% year-on-year [1] - The Milan brand had 554 dealers and 579 stores, achieving revenue of 367 million, a year-on-year increase of 14.87% [1] - The company’s multi-brand strategy is aimed at enhancing customer value and expanding market coverage [1] Future Projections - Revenue projections for 2024, 2025, and 2026 are 10.888 billion, 11.683 billion, and 12.529 billion respectively, with year-on-year changes of -6.7%, +7.3%, and +7.2% [2] - Net profit projections for the same years are 1.190 billion, 1.355 billion, and 1.494 billion, with year-on-year changes of -5.6%, +13.8%, and +10.3% [2] - The expected EPS for 2024, 2025, and 2026 are 1.24, 1.41, and 1.55 respectively, with corresponding P/E ratios of 15.38, 13.51, and 12.25 [2]