ASIA CUANON(SH:603378) Tianfeng Securities·2024-11-19 06:54Investment Rating - The report maintains a "Buy" rating for the company with a target price of 9.43 CNY, based on a projected PB of 2.3x for 2024 [1][41]. Core Viewpoints - The company introduces the "Big Retail" concept, focusing on brand, category, and channel to enhance its competitive edge. The strategy aims to capture market share in the growing home decoration materials market, which is estimated to exceed 40 trillion CNY, with over 60% being existing demand [1][9][10]. - The company expects to achieve net profits of 0.5 million CNY, 1.4 million CNY, and 1.8 million CNY for the years 2024 to 2026, respectively, indicating a solid growth foundation if real estate demand improves [1][41]. Summary by Sections 1. Big Retail: Innovation in Retail Business - The company has proposed the "Big Retail" concept, emphasizing a brand matrix and a comprehensive product and service system to drive growth [1][9]. - The brand strategy includes collaboration with RPM to enhance high-end market penetration and establish a multi-tiered brand matrix [1][10][15]. - The product strategy involves launching a "Seven-in-One" product and service system to meet diverse customer needs and improve operational efficiency [1][26][27]. 2. Financial Data and Valuation - The company's projected revenue for 2024 is 2,778.74 million CNY, with a decline of 10.66% from the previous year, followed by a recovery in 2025 with a growth of 3.44% [3]. - The expected EBITDA for 2024 is 287.31 million CNY, with a significant drop from 558.11 million CNY in 2023 [3]. - The net profit attributable to the parent company is forecasted to be 48.86 million CNY in 2024, reflecting a continued decline from 60.18 million CNY in 2023 [3]. 3. Channel Strategy - The company is establishing a sales channel model centered around "city agents," aiming to deepen distribution and enhance market penetration [1][33]. - The goal is to develop 300 city agents within three years and 3,000 retail stores over ten years, targeting a revenue scale of 30 billion CNY [1][37].