AI设计工厂开启变革

Investment Rating - The investment rating for the company is "Accumulate (Maintain Rating)" with a target price of 13.66 CNY [1]. Core Views - The company has launched the first AI design factory in the industry, which is expected to revolutionize productivity in the home furnishing sector. This factory shifts the traditional model from individual stores handling all design services to a centralized design delivery model, allowing stores to focus on sales [1]. - The company aims to optimize its channel layout and has introduced a plan to establish "500 stores in 9 cities," focusing on expanding its franchise model while maintaining a few flagship stores for demonstration purposes [1]. - The company has adjusted its profit forecasts for 2024-2026, expecting net profits of 1.8 billion, 2.6 billion, and 3.4 billion CNY respectively, with corresponding P/E ratios of 17, 12, and 9 [1]. Financial Data Summary - In Q1 2024, the company reported revenue of 780 million CNY, a decrease of 4.0% year-on-year, while the net profit attributable to the parent company was -90 million CNY, an increase of 9.2% [1]. - For the full year 2023, the company achieved revenue of 4.9 billion CNY, down 7.8% from the previous year, but the net profit attributable to the parent company increased by 40.1% to 60 million CNY [1]. - The company plans to distribute a cash dividend of 200 million CNY for 2023, with a payout ratio of 305% [1]. Product Performance - In 2023, the company's custom furniture products generated revenue of 3.51 billion CNY, down 8.6%, with a gross margin of 36.7%, an increase of 1.7 percentage points [1]. - The revenue from supporting home products was 710 million CNY, an increase of 8.2%, with a gross margin of 19.4%, down 3.4 percentage points [1]. Store Expansion and Strategy - As of the end of 2023, the company had 46 self-operated stores and 285 franchise stores, with a total of 2,005 franchise stores, including 463 new openings [1]. - The company is focusing on expanding into untapped cities and increasing support for major distributors and general agents [1].