\u3000\u3000 Goldenhome Living Co.Ltd(603180) (603180)
The company announced the performance forecast for 2021. The annual revenue was 3.45 billion yuan, an increase of 30.7%, and the net profit attributable to the parent company was 340 million yuan, an increase of 16.5%, slightly exceeding the expectation. During the reporting period, the company relied on multi category channel layout and strengthened cooperation with high-quality real estate developers to achieve high growth in total revenue and profit and maintain the buy rating.
Key points supporting rating
Q4 revenue and profit growth improved month on month. The company’s Q4 revenue in a single quarter was 1.23 billion yuan, an increase of 20.1% at the same time, and the growth rate increased by 6.6% month on month compared with Q3. We believe that the company has better overcome the adverse impact of the industry downturn, and the Q4 revenue has improved month on month. Q4 single quarter net profit was 182 million yuan, an increase of 26.9%. We believe that the impact of Q3 epidemic on performance is gradually weakened, and the company’s performance is gradually repaired. It is expected that with the peak of raw material prices and the upgrading of product structure, the profitability is expected to continue to rise in 2022. In 2021, the stock of advance receipts was 510 million yuan, with a year-on-year increase of 18.6%, indicating that the company’s order demand still maintained a strong growth trend.
Relying on the two wheel drive of retail and bulk business, accelerate the expansion. Although the household industry has been adversely affected by the slowdown of real estate growth, the company has developed rapidly with multi-channel expansion. In terms of retail business, the company actively promotes the construction of kitchen, clothing, wood electrical appliances and other category channels. As of Q3 in 2021, the number of kitchen cabinets / wardrobe / wooden door stores of the company was 1699 / 866 / 319 respectively, an increase of 114 / 144 / 138 over the beginning of the year, which is in the period of rapid expansion. In terms of bulk business, the company further strengthened strategic cooperation with real estate enterprises such as central enterprises, local state-owned enterprises and high-quality private enterprises, and the bulk business achieved steady growth in 2021. On the whole, the company has achieved rapid development relying on the two wheel drive of retail and bulk business.
It is optimistic that the market share of the company will continue to increase in the future. The company is deeply engaged in cabinet customization and other businesses to create first-class product quality, while accelerating the digital transformation and upgrading and innovative channel mode. We are optimistic that the market share of the company will continue to increase in the future. In addition, the company continues to increase the resource investment in overseas, wooden doors, kitchen electricity, smart home, Weiyang, home products, decoration and other businesses, which is expected to become a new growth point of the company in the future.
Valuation
Under the current share capital, the earnings per share from 2021 to 2023 are expected to be 2.09/2.68/3.35 yuan respectively; The price earnings ratio is 16 / 12 / 10 times respectively. Maintain buy rating.
Main risks of rating
Industry competition intensifies, new product expansion fails to meet expectations, and raw material prices fluctuate
