SFY(002572) 国投证券·2024-11-07 10:23Investment Rating - The investment rating for the company is maintained at "Buy-A" with a target price of 25.09 CNY [5] Core Views - The company is experiencing short-term pressure on performance, but its profitability remains stable. For the first three quarters of 2024, the company reported a revenue of 76.56 billion CNY, a year-on-year decrease of 6.65%, and a net profit of 9.22 billion CNY, down 3.24% year-on-year [1] - The company is actively expanding its brand matrix, with the Sofia brand revenue declining by 6.84% to 68.90 billion CNY, while the Milan brand saw a growth of 14.87% to 3.67 billion CNY [2] - The integrated decoration channel has shown growth, with a revenue increase of 26.34% year-on-year for the first three quarters of 2024 [3] - The company is focusing on optimizing its cost structure, with a gross margin of 35.79% for the first three quarters of 2024, showing a slight increase year-on-year [4] Summary by Sections Financial Performance - For Q1-Q3 2024, the company achieved a revenue of 76.56 billion CNY, a decrease of 6.65% year-on-year, and a net profit of 9.22 billion CNY, down 3.24% year-on-year. In Q3 alone, revenue was 27.26 billion CNY, a decline of 21.13% year-on-year, with a net profit of 3.57 billion CNY, also down 21.16% [1] - The gross margin for Q1-Q3 2024 was 35.79%, an increase of 0.17 percentage points year-on-year, while Q3 gross margin was 35.86%, a decrease of 0.90 percentage points [4] Brand Performance - The Sofia brand generated 68.90 billion CNY in revenue for Q1-Q3 2024, down 6.84% year-on-year. The Milan brand, however, reported a revenue of 3.67 billion CNY, marking a growth of 14.87% [2] Channel Development - The integrated decoration channel achieved a revenue growth of 26.34% year-on-year for Q1-Q3 2024, with the company collaborating with 277 decoration companies across 196 cities [3] Cost Management - The company maintained a good control over its expenses, with a period expense ratio of 20.20% for Q1-Q3 2024, a decrease of 0.34 percentage points year-on-year [4]