Fuanna(002327) Orient Securities·2025-05-06 03:23Investment Rating - The report maintains a "Buy" rating for the company with a DCF target valuation of 11.48 CNY per share [2][6]. Core Views - The company continues to implement a high dividend policy, with an expected dividend payout ratio of 95.8% for the year [5]. - Despite short-term performance pressures, the company is expected to gradually improve its operations due to strong brand recognition and adjustments in both online and offline channels [5]. Financial Performance Summary - Revenue: The company reported a revenue of 3,030 million CNY in 2023, with a projected decline to 2,991 million CNY in 2025, followed by a recovery to 3,412 million CNY by 2027 [2][11]. - Net Profit: The net profit attributable to the parent company is expected to decrease from 572 million CNY in 2023 to 540 million CNY in 2025, before increasing to 633 million CNY in 2027 [2][11]. - Earnings Per Share (EPS): EPS is projected to be 0.68 CNY in 2023, decreasing to 0.64 CNY in 2025, and then increasing to 0.76 CNY by 2027 [2][11]. - Gross Margin: The gross margin is expected to improve from 55.6% in 2023 to 56.4% in 2027 [2][11]. - Net Margin: The net margin is projected to decrease slightly from 18.9% in 2023 to 18.0% in 2024, before recovering to 18.6% in 2027 [2][11]. Channel Performance Summary - Online Channel: Revenue from the online channel is expected to decline by 7.4% in 2024, but the gross margin is projected to increase by 2.3 percentage points to 50.3% [5]. - Direct Sales Channel: Revenue from direct sales is expected to grow by 1.8% in 2024, with a gross margin of 67.9% [5]. - Franchise Channel: Revenue from the franchise channel is projected to grow by 1.4% in 2024, with a gross margin of 55.6% [5]. - Group Purchase: Revenue from group purchases is expected to increase by 5.1% in 2024, with a gross margin of 41.6% [5].