\u3000\u3000 Goldenhome Living Co.Ltd(603180) (603180)
Core view
During the reporting period, the company’s business revenue was + 3.4 billion yuan, with a year-on-year performance of + 3.0 billion yuan; The net profit attributable to the parent company was 341 million yuan, a year-on-year increase of + 16.47%; The net profit attributable to the parent company after non deduction was 262 million yuan, a year-on-year increase of + 10.46%; The basic earnings per share was 2.35 yuan / share, a year-on-year increase of + 5.25%.
Comments:
The new business of kitchen and wardrobe continued to grow steadily, and the annual performance slightly exceeded expectations. In Q4, the company achieved a revenue of 1.23 billion yuan, a year-on-year increase of + 20.04%, and a net profit attributable to the parent company of 183 million yuan, a year-on-year increase of + 26.59%. After deduction, the net profit attributable to the parent company was 157 million yuan, a year-on-year increase of + 16.97%. On the whole, the company’s kitchen, clothing, wood, electrical appliances and other categories have achieved steady growth. However, due to the increase in the proportion of wooden doors and bulk businesses with low gross profit margin and the sharp fluctuation of raw material costs during the year, the annual profit growth of the company is slower than the revenue growth. According to our calculation, the company’s Q4 deduction non parent net profit margin is about 12.78%, and the profit margin level of about 6.9% month on month Q3 has significantly warmed up. We believe that the pressure on the profit side of the company has been relieved in Q4, driving the performance of the annual performance slightly higher than expected.
The strategic layout of all categories and all channels is becoming more and more perfect, and the development quality of bulk business is paid equal attention to. The strategic layout of all categories and all channels of the company has achieved initial results. In the whole year, the new expansion businesses such as overseas, wooden door, Weiyang, kitchen electricity and smart home have successfully achieved the expected objectives, the order amount has increased steadily, and the stock of advance receipts has reached 510 million yuan, a year-on-year increase of 18.60%. At the same time, the company’s customer single value and joint single rate continued to increase with the expansion of categories. In terms of channels, the company’s channel layout is becoming more and more perfect, and stores are accelerating to enter the sinking blank market. The bulk channel customers are of high quality, and they operate in the mode of engineering agent, which effectively controls the risk of accounts receivable. The bulk business also achieved high-quality and steady growth throughout the year.
Investment suggestion: the epidemic disturbance is under pressure in the short term and continues to be optimistic about long-term growth. The company’s all category and all channel strategic layout is becoming more and more complete. Among them, the performance of new categories is excellent, and the bulk, packaged and overseas channels are growing steadily. We believe that in 2022, driven by the accelerated expansion of channels and the integration of categories, the company can continue its beautiful growth performance on the revenue side, and the profitability of the company has effectively recovered in Q4, It is expected to continue to repair in 2022. We slightly raised the company’s profit forecast. It is estimated that the net profit attributable to the parent company from 2021 to 2023 will be RMB 340 / 4.4 / 550 million respectively. The original forecast value (RMB 310 / 4.4 / 570 million) corresponds to the current market value PE of 15 / 12 / 9x respectively, maintaining the “overweight” rating.
Risk tip: the development of new channels is less than expected, the completion of real estate is less than expected, and the industry competition is intensified
