居然之家：具备国内最全面的泛家居服务生态

Investment Rating - The investment rating for the company is "Buy" with a target price set above the current price of 2.97 CNY [1][10][18] Core Views - The company has established a comprehensive home furnishing service ecosystem in China, which includes various business segments such as design, renovation, and smart home services [2][10] - The company's revenue for Q1 2024 was 3.1 billion CNY, a decrease of 3% year-on-year, while the net profit attributable to the parent company was 350 million CNY, down 23% year-on-year [2] - The company is undergoing a digital transformation, having developed three major smart home platforms, which are expected to enhance operational efficiency and customer engagement [3][6] Financial Performance - In 2023, the company reported total revenue of 13.5 billion CNY, an increase of 4% year-on-year, but the net profit attributable to the parent company decreased by 21% to 1.3 billion CNY [2][11] - The company's rental and franchise management business generated 6.9 billion CNY in revenue, accounting for 51% of total revenue, but saw a 12% decline year-on-year [3][10] - The projected revenue for 2024-2026 is expected to be 15.05 billion CNY, 16.46 billion CNY, and 17.82 billion CNY respectively, with corresponding net profits of 1.47 billion CNY, 1.57 billion CNY, and 1.72 billion CNY [10][11] Business Model and Strategy - The company has innovated its business model by introducing a "fixed rent and sales sharing" approach, which has improved the recruitment rate of merchants significantly [4][10] - The company has successfully opened several shopping centers, with the first one in Changchun generating sales of 633 million CNY and attracting over 10 million visitors in 2023 [5][10] - The digital platforms developed by the company have seen significant growth, with the "洞窝" platform having onboarded 934 stores and over 100,000 merchants by the end of 2023 [6][10] Market Position - The company is one of the few in the domestic market capable of establishing a full-cycle home furnishing service ecosystem, integrating various high-frequency consumption scenarios [10][12] - The company has formed strategic partnerships with major platforms like Tmall and Tencent, enhancing its market influence and customer reach [10][12]