Deeply cultivate the regional building materials and home furnishing market. The company was founded in 2000 and is dedicated to the investment, development, operation management, and marketing planning of large-scale building materials and home furnishing commercial stores. It is a platform-based enterprise in the field of home furnishing distribution. In 2019, it achieved revenue of 1,619 million yuan and net profit of 801 million yuan to mother. The company is based in Chengdu, with a stable regional market share. As a provincial capital city and a new first-tier city with a resident population of over 16 million, Chengdu has huge consumption potential. At the same time, it is a Sichuan furniture manufacturing cluster with Chengdu as the main carrier. It is one of China's top three furniture manufacturing bases and the largest panel furniture production base in China. Differentiated layout of multi-level store formats, high brand reputation. The company operates an investment promotion store that uniformly implements the Fusenmei operation and management system. It has entered more than 3,000 merchants and tens of thousands of brands, and its products cover the entire household consumption industry chain. The company currently owns more than 1.1 million square meters of retail properties. At the end of 2019, it joined and managed stores on a scale of 516,000 square meters. The “Fussemi” brand, which the company owns and manages its stores, has been awarded the “Top 10 Home Chain Stores in China” and the “Top 10 Preferred Chinese Home Furnishing Consumption Platforms for 2019-2020” by the 2018 and 2019 China Home Furnishing Brand Conference. The company's current main revenue model comes from store investment and rent. The gross profit ratio, net interest rate and cost ratio are at the forefront of the industry. Fusenmei's main advantages are: 1) low cost of self-owned property; 2) strong refined operation capabilities, multi-level business layout, and differentiated investment and services; 3) outstanding industrial chain integration and innovation capabilities and rich platform resources. Digital integration and upgrading to accelerate the layout of new retail. The company closely follows growing demand trends such as individualization in the home furnishing industry, focusing on “drainage and empowerment”, consolidating the company's regional advantages through various methods such as WeChat applets, webcasts, joint marketing, special events, and optimizing the brand structure, focusing on the digital upgrading of stores to achieve accurate transformation of online traffic while improving operational efficiency. Under the new retail model, the company will also provide full industry chain services for C-side customers. In November 2020, Fusenmei signed a strategic contract with Ali's home manufacturing platform “Lianping Intelligent Manufacturing”. The two sides will cooperate to lay out the C2M ecosystem in the home furnishing industry and connect the entire production and sales chain to achieve the implementation of the “product+service” model and scale expansion. Relying on a moat-level supply chain, we will create a “Chinese version of IKEA in the new retail era”. The company expects to launch its first offline self-operated experience store in Chengdu during the year to create a “Chinese version of IKEA in the new retail era”. Based on this, the company will drive large-scale replication, cross-regional promotion, and achieve online sales of products throughout the country. The company's core advantages in developing new retail projects are: 1) the company has always been deeply involved in products and has many years of experience and foundation in home furnishing sales; 2) it has a moat-level pan-home “service+product” integrated supply chain system. Cooperating companies include thousands of well-known national manufacturers, thousands of Chengdu Home Furnishing Industry Belt companies, and hundreds of global home furnishing factories, and continue to make efforts to integrate upgraded design, home decoration and other services. Investment advice: In the future, the company will deepen its platform strategy, increase market penetration, and promote the implementation of new retail models, industrial agglomeration, and large-scale development across the country. Currently, the company's financial stability and sufficient own capital will strongly guarantee the steady progress of planned projects. The company also has more than 1 million square meters of construction to be built, and there is great potential for asset revaluation. Our EPS forecast for 2020 to 2022 was 0.89 yuan/1.09 yuan/1.26 yuan, respectively, and the corresponding PE was 18X/15X/13X, respectively, covered for the first time, and gave a “buy” rating. Risk warning: The real estate boom cycle is declining, market competition is intensifying, and the development progress of the company's new retail business falls short of expectations.