Sofia (002572): Wait for the flowers to bloom

Sofia (002572): Wait for the flowers to bloom
Investment considerations: 1. Family demand is more rigid, and new house renovation and old house renovation are extensions of consumer plans. The occurrence of an epidemic requires the demand to be postponed, but it will not disappear.2. Online marketing will become the normal way and method in the future. Brand leading companies with rich experience and team combat capabilities will enjoy the mid-to-long term “new channel” bonus.3. The epidemic situation is under pressure from small and medium brands, and the market structure is optimized or accelerated. More dealers will join the team of large brands.4. The unadjustable real estate policy is relaxed (evaluated) and the completion data after the epidemic is warmed up (increasing performance). The replacement of new homes and the replacement of old homes will open a new round of growth for home furnishing companies. Davis double-click is just around the corner. 1. Online marketing in the short term, with thousands of stores as the main theme of scale. The company enjoys new channel dividends for a long time. The company adjusts earlier to deal with the impact of the epidemic. We expect this year to gradually reach a small degree, with rhythmic changes, but no quantitative changes.The company has a mature Internet team, and executives formulate an online-led play based on the status of the epidemic, and continue to optimize the plan.According to the latest analysis and feedback, the online order surpassed expectations, and the new play was quite effective. Sofia’s early deployment on e-commerce platforms such as Tmall and JD.com has abundant resources, which is conducive to buffering the epidemic.The company proposes a plan 南京桑拿论坛 of thousands of stores, and the future of online marketing activities will be normalized. It will be a leading brand company with an early layout and a strong team ability. 2. The company’s channels have been basically completed gradually. A new team and new model have started a new era of the company. Orderly adjustment of the company’s channels and products in 2019. The introduction of active promotion of the company-socket linkage has greatly improved the profitability and confidence of dealers, and the expansion has continued to increase.Dealer evaluation is more detailed (forecast is expected to activate the vitality of dealers). At the same time, approximately 8% of the transfers and transfers are performed each year to maintain the team’s combat effectiveness.The product structure was upgraded, mid- to high-end products continued to grow, and the proportion of Kangchun boards continued to increase.After a long period of research and visits, the company formulated a new strategy, a new team and a new model to start a new era of the company, and maintained healthy and stable growth in 2020.In addition, the company replaced the Chinese women’s volleyball team with an image spokesperson and strengthened its cabinet expert positioning, so that the Sophia brand occupied consumers’ minds with a more precise positioning. 3. The short-term performance fluctuations do not change the long-term trend. They will wait for a while. The industry will face pressure in a quarter waiting for the outbreak of epidemics to continue, and leading companies may be less affected.But the total demand has not changed, only the rhythm has changed, and there has been no accumulation change.We don’t think the epidemic will affect the company’s target sales target.In 2021, the net profit attributable to mothers will increase by 11%, 13%, and 14% respectively. At present, the corresponding 20-year PE is 15x, and the investment rating of “Strongly Recommended-A” is maintained. Risk warning: outbreak may affect more than expected, multi-category and multi-channel development is lower than expected

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