FIYTA(000026) 华福证券·2025-02-07 13:52Investment Rating - The report initiates coverage with a "Hold" rating for the company [6][85]. Core Viewpoints - The company is a leader in the domestic watch industry, focusing on brand and channel development, with a strong emphasis on precision technology to foster new growth points [4][6]. - The company has a robust self-owned brand strategy and a well-established retail network, particularly through its subsidiary, Hengjili, which has a significant presence in the luxury watch retail market [5][55]. - The financial outlook predicts a revenue decline of 12% in 2024, followed by growth of 10% and 7% in 2025 and 2026, respectively, with corresponding net profit growth rates of -21%, 12%, and 13% [6][80]. Summary by Sections Company Overview - Founded in 1987, the company is the only listed watch manufacturer in China, focusing on precision manufacturing and brand innovation [3][13]. - The company has two main business lines: self-owned brand watch development and luxury watch retail [3][13]. Brand and Channel Development - The company has developed a multi-brand matrix centered around its flagship brand, Feiyada, and has optimized its channel structure to enhance market presence [4][47]. - In 2023, the company's watch brand business generated revenue of 797 million yuan, a year-on-year increase of 9.88%, with a gross margin of 66.9% [4][47]. Retail Business - Hengjili, the company's luxury watch retail channel, has established nearly 200 stores across over 60 cities in China, achieving revenue of 3.47 billion yuan in 2023, up 4.6% year-on-year [5][55]. - The retail business focuses on high-end brands and has implemented a comprehensive service model to enhance customer experience [5][55]. Precision Technology and New Growth Points - The company is expanding its precision technology business into sectors like aerospace and medical devices, while also enhancing its smart wearable technology capabilities [6][69]. - The introduction of new products, such as AI-integrated smartwatches, is part of the company's strategy to capture emerging market opportunities [6][69]. Financial Performance and Forecast - In 2023, the company reported total revenue of 4.57 billion yuan, a 5% increase from the previous year, with a net profit of 333 million yuan, reflecting a 25% increase [26][27]. - The financial projections for 2024-2026 indicate a challenging environment with expected revenue declines followed by gradual recovery, alongside a focus on maintaining shareholder returns with a 50% dividend payout in 2023 [6][85].