Guide to this report: The strategic layout adapts to the development needs of different periods, and the medium to long term transformation from a product retailer to a platform brand. With the omni-channel transformation and the gradual implementation of core business resource allocation guarantees, the quality of operations is expected to improve further. Key investment points: Raise the target price to 7.2 yuan to maintain an increase in holdings rating. With the omni-channel transformation and the gradual implementation of core business resource allocation guarantees, the quality of operations is expected to improve further. Considering the impact of the pandemic on the company's performance in 2020, the EPS from 2020 to 2022 was lowered to 0.22 (-0.09) /0.30 (-0.04) /0.35 yuan. The reference comparison company gave PE 24 times in 2021, and the target price was raised to 7.2 yuan, maintaining an increase in holdings rating. The strategic layout adapts to the company's development needs at different times, transforming from a product retailer to a platform brand in the medium to long term. The company has accumulated over many years to form the core competitiveness of design, development and global product supply capabilities. As the company continues to optimize resource allocation, product style and size will be more in line with mainstream market needs, further open up market space and establish product plans and product strategies to drive the company's growth. In the medium to long term, it will transform from a product retailer to a platform brand, and is expected to achieve integration across categories. Empower the domestic market in multiple dimensions, and accelerate the transformation of omni-channel platforms through online and offline collaborative development. The company is stepping up efforts to expand distribution channels, and at the same time actively promote the optimization of inefficient stores and low-quality dealers to achieve equal emphasis on channel expansion and optimization; the company uses superior resources to actively promote business layouts such as real estate and hotels, and achieve cooperation with real estate and hardware companies. As internal and external designers are empowered to complete the S2B2C model and the proportion of online sales increases, it is expected to promote comprehensive platform-based transformation across all channels. The supply chain improvement strategy has been implemented, and the quality of operations is expected to continue to improve. The flexibility of the supply chain is improved by improving the adaptability of planning, production, sales and logistics. Indicators such as inventory turnover, inventory, and cash flow each show trends of improvement and optimization to varying degrees, and supply chain improvements have shown remarkable results. The quality of operations will continue to improve as the company slims down its business, reduce redundant SKUs, and dispose of idle, defective, and inefficient assets, and is expected to increase net interest rate and ROE. Risk warning: risk of fluctuations in raw material prices, risk of fluctuations in real estate demand