\u3000\u3000 Goldenhome Living Co.Ltd(603180) (603180)
Event: on February 10, Goldenhome Living Co.Ltd(603180) released the 2021 performance express. The company achieved an operating revenue of 3.45 billion yuan in 2021, with a year-on-year increase of 30.70%; 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 deduction was 262 million yuan, a year-on-year increase of 10.46%. In 2021q4, the company realized an operating revenue of 1.231 billion yuan, a year-on-year increase of 20.10%; The net profit attributable to the parent company was 183 million yuan, a year-on-year increase of 26.87%; The net profit attributable to the parent company after deduction was 157 million yuan, a year-on-year increase of 16.90%.
Channel categories make concerted efforts, and the engineering agent model effectively controls the risk of bulk business
The company has made efforts through multiple channels and categories, and achieved remarkable development results. On the one hand, the company actively promoted digital transformation and upgrading, accelerated the innovation of channel mode, promoted the channel layout of kitchen, clothing, wood, electrical appliances and other categories, and realized the steady growth of kitchen cabinet retail business and the rapid growth of wardrobe and wooden door retail business. Driven by the growth of orders, the company realized a net cash flow of 531 million yuan from operating activities and a stock of advance receipts of 510 million yuan in 2021, a year-on-year increase of 18.60%. On the other hand, in order to promote the strategic layout of all categories and all channels and provide customers with one-stop whole house and decoration solutions, the company continues to increase the personnel and resource investment in wooden doors, kitchen appliances, smart home, Weiyang, home products, decoration and other businesses. By the end of September 2021, the total number of stores of the company had reached 2916, an increase of 423 stores compared with the end of 2020, including Goldenhome Living Co.Ltd(603180) 114 stores, 144 gold medal wardrobe, 138 gold medal wooden doors and 27 packaged stores. With the comprehensive development of new business in the future, it will provide a strong guarantee for the continuous growth of the company’s performance. The advantages of bulk business engineering agent model are prominent. The company further strengthened the strategic cooperation with real estate enterprises such as central enterprises, local state-owned enterprises and high-quality private enterprises, and strengthened the management of accounts receivable. In 21 years, the bulk business achieved steady growth without abnormal impairment of accounts receivable. In addition, as the supply price of the company’s bulk business products was locked in advance in the strategic cooperation agreement, the price of raw materials continued to rise, resulting in an increase in relevant costs and a slight decrease in the comprehensive gross profit margin.
The equity incentive plan fully mobilizes enthusiasm and demonstrates development confidence
In December 2021, the company launched the employee equity incentive plan, which plans to grant 3 million stock options, accounting for 1.94% of the current total share capital, and the exercise price is 27.47 yuan / share. The incentive grant objects include 124 middle and senior managers and core backbones. The performance assessment target of the equity incentive plan is that the year-on-year growth rate of net profit in 2022 and 2023 is not less than 20%. We believe that it will fully mobilize the enthusiasm of the management and demonstrate the firm confidence in the development of the company.
Investment suggestion: the company actively promotes digital transformation and upgrading, and makes full efforts in multiple channels and categories. We estimate that the operating revenue of Goldenhome Living Co.Ltd(603180) 2022-2023 will be 4.296 billion yuan and 5.261 billion yuan, with a year-on-year increase of 24.52% and 22.46%; The net profit attributable to the parent company was 414 million yuan and 516 million yuan, with a year-on-year increase of 21.36% and 24.79%, corresponding to PE of 14.2x and 11.4x, and the investment rating of Buy-A was given.
Risk warning: the expansion of channel categories is less than the expected risk; Risks of continuous rise in raw material prices, etc.
