SFY(SZ:002572) Guoxin Securities·2025-09-02 11:06Investment Rating - The investment rating for the company is "Outperform the Market" [6][28]. Core Views - The company experienced a decline in revenue and profit in the second quarter of 2025, with a revenue of 4.55 billion yuan, down 7.7%, and a net profit of 320 million yuan, down 43.4% [1]. - Despite the short-term operational pressure, the company is actively pursuing a multi-brand, full-category, and all-channel strategy, with promising growth in direct sales and overseas markets [1][3]. - The company has adjusted its profit forecast downward but maintains a positive outlook on its performance resilience under the home furnishing strategy [4]. Summary by Sections Financial Performance - In the first half of 2025, the company achieved a revenue of 4.55 billion yuan, down 7.7%, and a net profit of 320 million yuan, down 43.4% [1]. - The second quarter saw a revenue of 2.51 billion yuan, down 10.8%, and a net profit of 310 million yuan, down 23.0% [1]. - The company's gross margin slightly decreased to 34.4%, down 1.4 percentage points, while the gross margin for wardrobes and related products increased by 0.9 percentage points [4]. Brand Performance - The company's main brand, Sophia, saw a revenue of 4.13 billion yuan, down 7.1%, while the Milan brand's revenue was 176 million yuan, down 26.5%, but its average transaction price increased by 21.0% [2]. - The company is focusing on enhancing its brand presence and expanding its distribution channels, including e-commerce and new partnerships [2][3]. Channel Performance - Direct sales revenue increased by 27.6% to 200 million yuan, while the overseas business revenue grew by 39.5% to 34 million yuan [3]. - The company has established 26 overseas distributors covering 23 countries and regions, indicating a strong commitment to international expansion [3]. Profit Forecast - The profit forecast for 2025-2027 has been adjusted to 1.144 billion yuan, 1.285 billion yuan, and 1.390 billion yuan, respectively, reflecting a year-on-year decline of 17% in 2025, followed by growth in subsequent years [4][5]. - The diluted EPS is projected to be 1.2 yuan, 1.3 yuan, and 1.4 yuan for 2025, 2026, and 2027, respectively, with corresponding PE ratios of 12, 10, and 10 times [4].