EASYHOME(000785) 兴业证券·2024-12-01 19:45Investment Rating - The report maintains an "Add" rating for the company [2]. Core Viewpoints - The report suggests that the pressure on traditional offline home furnishing stores may be overstated, as demand for home improvement in existing properties is providing new momentum for the market [2][21]. - The company has signed a strategic cooperation agreement with Jinju Group, which will expand its business scope across seven key areas, enhancing its competitive position [2][3]. - The company is actively pursuing digital transformation and new marketing strategies, which are expected to drive long-term growth [2][3]. Summary by Sections 1. Home Furnishing Industry - The home furnishing industry is facing pressure, with a reported 17% decline in sales in 2022, but the market for chain home furnishing stores remains stable, holding a 22-23% share of the retail market from 2016 to 2022 [2][17]. - The report highlights that the sales of chain home furnishing stores are not significantly affected by online channels, as they maintain a strong customer experience [2][17]. 2. Company Overview - The company has a total of 409 home furnishing stores as of the first half of 2024, with a focus on expanding both franchise and direct-operated stores [2][3]. - The introduction of strategic investors and the focus on digital transformation are expected to enhance the company's operational efficiency and market share [2][3]. 3. Core Competitiveness - The company operates under a light asset model, allowing for steady growth in store numbers and market share [2][3]. - The report emphasizes the company's resilience in the face of external pressures, with a focus on expanding its market presence in key regions [2][3]. 4. Long-term Growth Potential - The company is implementing new marketing strategies and digital tools to enhance customer engagement and sales [2][3]. - The report projects that the company's revenue and profit will stabilize and grow in the coming years, with a forecasted net profit of 1.021 billion yuan in 2024, reflecting a 21.5% decline year-on-year, but expected to recover with a 13.5% increase in 2025 [3][2]. 5. Financial Forecast and Valuation - The report adjusts the profit forecast for 2024-2025, estimating a net profit of 1.021 billion yuan for 2024 and 1.159 billion yuan for 2025, with corresponding PE ratios of 17.9 and 15.8 times [3][2].