SFY(SZ:002572) Guoxin Securities·2025-09-02 11:41Investment 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%. The decline is attributed to challenges in the housing market, increased competition, and changes in consumer behavior [1]. - Despite the short-term pressure, the company is actively pursuing a multi-brand, full-category, and omni-channel strategy, with a focus on the existing housing market and overseas expansion, which are expected to become new growth points [1]. - 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 Revenue and Profit 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%. 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][4]. - The company's brands showed varied performance, with the Sofia brand revenue at 4.13 billion yuan, down 7.1%, while the Milan brand saw a significant increase in average transaction price by 21.0% [2]. Channel Performance - Direct sales and overseas business showed strong growth, with direct sales revenue increasing by 27.6% to 200 million yuan and overseas revenue up by 39.5% to 34 million yuan. However, the dealer and bulk channels faced slight pressure [3]. - The company has established 26 overseas dealers covering 23 countries and regions, indicating a strong commitment to international expansion [3]. Profitability Metrics - The 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, attributed to cost reduction and improved material utilization [4]. - The company has adjusted its profit forecasts for 2025-2027, expecting net profits of 1.14 billion, 1.29 billion, and 1.39 billion yuan respectively, with a projected EPS of 1.2, 1.3, and 1.4 yuan [4][5].