SFY(SZ:002572) Guotai Junan Securities·2024-04-30 09:32Investment Rating - The report maintains a rating of "Buy" for the company [2][4] - The target price is set at 23.10 CNY, with the last forecast also being 23.10 CNY [2][4] Core Views - The company's performance in Q1 2024 showed steady growth, with significant improvements in profitability, driven by the integrated channel and Milan products [2][4] - The revenue for Q1 2024 reached 2.111 billion CNY, representing a year-on-year increase of 16.98%, while the net profit attributable to shareholders was 165 million CNY, up 58.59% [2][4] - The report highlights effective cost control measures that have led to improved profitability, with a gross margin of 32.63% [2][4] Summary by Sections Financial Performance - The company achieved a revenue CAGR of 2.76% from Q1 2022 to Q1 2024, primarily driven by the integrated channel and Milan products [2] - The operating cash flow for Q1 2024 increased significantly by 629.15% year-on-year, attributed to changes in dealer metrics and increased production [2][4] Profitability Metrics - The report notes a decline in gross margin by 0.63 percentage points, mainly due to a higher year-on-year increase in operating costs [2][4] - The net profit margin for Q1 2024 was reported at 8.24%, reflecting a year-on-year increase of 2.47 percentage points [2][4] Future Projections - EPS forecasts for 2026 are projected at 1.54, 1.83, and 2.12 CNY for the years 2024, 2025, and 2026 respectively [2][4] - The report anticipates continued growth in performance, supported by a clear brand positioning and effective channel strategies [2][4]