门店结构持续优化，AI 设计工厂赋能主业。公司聚焦“定制+配套”业务，通过不断迭代“随心选”模式开拓市场。产品端，公司从08 柜系统全面切换到23 柜系统，新柜体系统在产品颜值和成本控制上均具备竞争优势，有望进一步提升产品竞争力和市场适应性。门店端，公司持续优化渠道结构，加快推动门店直营转加盟降低刚性费用，三四五线空白市场布局逐渐完善。随着AI 设计工厂投入使用，有望进一步赋能新商，提高前期运营确定性。Matters:
The company announced its 2024 three-quarter report. In the first three quarters, the company achieved revenue/net profit after deducting net profit/net profit from non-attributable net profit of 2.73/-0.11/-0.13 billion yuan, YoY -22.2% /from profit to loss/-539.2%; 24Q3 realized revenue/net profit to mother 1.02/-0.01/-0.02 billion yuan, YoY -29.1% /from profit to loss/profit to loss.
Commentary:
The store structure continues to be optimized, and the AI design factory empowers the main business. The company focuses on the “customized+supporting” business and develops the market through continuous iteration of the “optional” model. On the product side, the company completely switched from the 08 cabinet system to the 23 cabinet system. The new cabinet system has competitive advantages in terms of product appearance and cost control, which is expected to further enhance product competitiveness and market adaptability. On the store side, the company continues to optimize the channel structure, accelerate the transfer of direct store management and franchise to reduce rigid costs, and gradually improve the empty market layout in the third, fourth, and fifth tier. As the AI design factory is put into use, it is expected to further empower new businesses and improve the certainty of early operations.
Trade-in is in full swing, connecting to online channels to open up the whole country. Recently, the trade-in home improvement subsidy policy has been implemented in an orderly manner across the country, and consumption activity in the home furnishing market in many places has increased markedly. The company also launched the Premium Renewal Package and the Bureau Reform and Renewal Package in line with the implementation of subsidies, with positive feedback from end consumers. In addition, the company has also launched various online payment channels for national subsidies, such as Tmall, JD, and Cloud QuickPass, to meet the needs of consumers across the country, which is expected to drive a recovery in household consumption demand.
Profitability improved quarterly, and sales & management expense ratios were repaired month-on-month. In 24Q3, the company achieved a gross profit margin of 34.2%, -1.0pcts/month-on-month +1.3pcts, showing a quarterly improvement trend (24Q1:27.8%, 24Q2:
32.9%) On the cost side, the company achieved a sales/management/finance expense ratio of 22.1%/6.4%/0.8%, +3.3/+0.8/+0.4pcts year over year, and -2.0/-1.8/+1.4pcts month-on-month. Taken together, the company achieved a net interest rate of -0.8% to mother in the third quarter, changing profit to loss over the same period, and +1.3 pcts compared to the second quarter.
Investment advice: The company is a leading customized home furnishing enterprise, actively sorting out the channel structure and promoting cost reduction and efficiency. As the effects of home trade-in on terminal consumption gradually become apparent, we expect the company's Q4 revenue side to recover. We expect the company to achieve net profit of 0.111/0.061/0.122 billion yuan in 24-26, corresponding to a PE of 52/26X in 25-26. Referring to the absolute valuation method, we will give a target price of 18.2 yuan/share, and maintain a “strong” rating.
Risk warning: Demand recovery fell short of expectations, real estate sales declined, and channel expansion fell short of expectations.
