Fuanna(SZ:002327) Orient Securities·2025-10-29 07:35Investment Rating - The report maintains a "Buy" rating for the company with a target price of 9.53 CNY [3][5]. Core Insights - The company is expected to see gradual improvement in operations starting from 2026, following a period of inventory clearance in 2025. The cautious mindset of franchisees is reflected in the financial statements, particularly impacting franchise business performance [2][10]. - The third quarter showed a narrowing decline in revenue and profit compared to previous quarters, with expectations of slight improvements across various sales channels [10]. - The company has consistently maintained a high dividend payout ratio of over 90% since 2021, indicating strong financial health and commitment to returning value to shareholders [10]. Financial Performance Summary - Revenue Forecast: The company’s revenue is projected to decline from 3,030 million CNY in 2023 to 2,665 million CNY in 2025, before recovering to 3,115 million CNY by 2027 [4]. - Net Profit: The net profit attributable to the parent company is expected to decrease from 572 million CNY in 2023 to 371 million CNY in 2025, with a recovery to 479 million CNY by 2027 [4]. - Earnings Per Share (EPS): EPS is forecasted to drop from 0.68 CNY in 2023 to 0.44 CNY in 2025, with a gradual increase to 0.57 CNY by 2027 [4][11]. - Gross Margin: The gross margin is expected to remain stable around 55.5% to 56.1% over the forecast period [4]. - Net Margin: The net margin is projected to decline from 18.9% in 2023 to 13.9% in 2025, before improving to 15.4% by 2027 [4]. Market Performance - The company's stock price as of October 28, 2025, was 7.16 CNY, with a 52-week high of 9.29 CNY and a low of 6.99 CNY [5].