Fuanna(SZ:002327) GOLDEN SUN SECURITIES·2025-04-30 06:23Investment Rating - The report maintains a "Buy" rating for the company [6]. Core Views - The company is expected to maintain stable performance in 2024, with a slight revenue decline of 0.6% to 3.01 billion yuan and a net profit decrease of 5.2% to 542 million yuan. The overall performance aligns with expectations [1]. - The company plans to focus on high-end markets and optimize its direct sales channels in 2025, aiming to enhance brand experience centers in core cities [2]. - The e-commerce segment is facing challenges, with a revenue decline of 7.4% to 1.12 billion yuan, but the company is prioritizing profitability improvements [3]. - The company is projected to have stable performance in 2025, with revenue and profit expected to remain flat, reflecting a cautious approach in a slow recovery demand environment [4]. Summary by Sections Financial Performance - In 2024, the company's revenue is projected to decline by 0.6% to 3.01 billion yuan, with a net profit decrease of 5.2% to 542 million yuan. The gross margin is expected to increase by 0.4 percentage points to 56.1% [1]. - The company plans to distribute a year-end dividend of 0.62 yuan per share, resulting in a dividend payout ratio of 95.84% and a dividend yield of 7.9% based on the closing price on April 29 [1]. Direct Sales Channel - The direct sales channel is expected to grow by 1.78% to 740 million yuan in 2024, with a gross margin decrease of 2.28 percentage points to 67.86%. The number of direct stores is projected to be 485 by the end of 2024 [2]. Franchise Channel - The franchise business is anticipated to grow by 1.40% to 840 million yuan in 2024, with a gross margin decrease of 0.64 percentage points to 55.57%. The number of franchise stores is expected to be 987, with a net closure of 23 stores [2]. E-commerce Channel - The e-commerce segment is projected to decline by 7.4% to 1.12 billion yuan in 2024, but the gross margin is expected to improve by 2.27 percentage points to 50.26%. The company is focusing on enhancing profitability in this segment [3]. Cash Flow and Inventory - By the end of 2024, inventory is expected to increase by 8.9% to 760 million yuan, while accounts receivable are projected to rise by 41.2% to 550 million yuan. Operating cash flow is expected to decline by 52.2% to 370 million yuan [3]. Future Outlook - For 2025, the company is expected to maintain stable performance, with projected revenues of 5.49 billion yuan, 5.86 billion yuan, and 6.23 billion yuan for 2025, 2026, and 2027 respectively. The price-to-earnings ratio for 2025 is estimated at 12 times [4].