FSM(SZ:002818) Haitong Securities·2024-04-07 16:00Investment Rating - The investment rating for the company is "Outperform the Market" [17][19] Core Views - The company achieved a revenue of 1.524 billion yuan in 2023, representing a year-on-year growth of 2.79%, with a net profit of 806 million yuan, up 2.97% year-on-year [19][20] - The company is positioned as a leading player in the home retail sector in Southwest China, benefiting from population inflow, real estate policies, and consumption recovery in the Chengdu region [8][19] - The company is exploring new retail formats and models while maintaining stable growth in its core home market [8][19] Financial Performance - In 2023, the comprehensive gross margin increased by 1.21 percentage points to 70.18%, with the main business gross margin rising by 1.75 percentage points to 71.06% [7][21] - The net profit attributable to the parent company for 2023 was 806 million yuan, with a diluted EPS of 1.08 yuan [19][23] - The company plans to distribute a dividend of 6.80 yuan per 10 shares (including tax) [19] Regional Performance - Revenue from the Chengdu region accounted for 95.27% of total revenue, with a year-on-year increase of 2.23% [20][21] - Other regions in Sichuan and Chongqing saw a revenue increase of 18.21% [20][21] Product Performance - Revenue from market leasing and services grew by 6.98% to 1.306 billion yuan, while advertising and planning services saw a significant decline in gross margin [21] - The main business revenue reached 1.452 billion yuan, with a growth rate of 5.71% [21] Future Projections - The forecasted net profit for 2024-2026 is 872 million yuan, 922 million yuan, and 969 million yuan, respectively, with expected growth rates of 8.1%, 5.7%, and 5.1% [9][23] - The current market capitalization corresponds to a PE ratio of 12 times for 2024, with a reasonable valuation range of 16.31 to 18.64 yuan per share [9]