SFY(002572) 东方证券·2024-04-22 09:32Investment Rating - The report maintains a "Buy" rating for the company with a target price of 21.08 RMB based on DCF valuation [8][18] Core Views - The company achieved revenue of 11.666 billion RMB in 2023, a YoY increase of 3.95%, and net profit attributable to shareholders of 1.261 billion RMB, a YoY increase of 18.51% [2] - The gross profit margin improved to 36.15% in 2023, up 3.2 percentage points YoY, driven by cost reduction and efficiency improvement measures [2] - The net profit margin reached 10.81% in 2023, up 1.3 percentage points YoY, indicating improved profitability [2] - The company's dividend payout ratio increased to 75% in 2023, with a cash dividend of 10 RMB per 10 shares [2] Business Performance - The Sofiya brand achieved revenue of 10.552 billion RMB in 2023, a YoY increase of 11%, while the Milan brand revenue grew 47% YoY to 472 million RMB [2] - The company's whole-home business revenue reached 1.907 billion RMB in 2023, a YoY increase of 68%, driven by strong growth in the retail channel [2] - The company's gross profit margin is expected to remain stable at around 35.7%-35.9% from 2024 to 2026 [36] Financial Projections - The company's revenue is projected to grow at a CAGR of 10.4%-11.9% from 2024 to 2026, reaching 16.067 billion RMB by 2026 [36] - Net profit attributable to shareholders is expected to grow at a CAGR of 9.3%-16.1% from 2024 to 2026, reaching 1.788 billion RMB by 2026 [36] - EPS is forecasted to increase from 1.31 RMB in 2023 to 1.86 RMB in 2026 [36] Valuation Metrics - The company's P/E ratio is expected to decline from 12.9x in 2023 to 9.1x in 2026, indicating potential undervaluation [36] - The P/B ratio is projected to decrease from 2.3x in 2023 to 1.9x in 2026 [36] - ROE is forecasted to improve from 19.7% in 2023 to 21.1% in 2026, reflecting enhanced profitability [36]