\u3000\u3000 Suofeiya Home Collection Co.Ltd(002572) (002572)
Event: on February 23, Suofeiya Home Collection Co.Ltd(002572) held the cabinet listing and the whole customized package press conference, and officially launched the 39800 pound whole customized package, The package has the top-level configuration of “all major brands, all rigid needs and all categories”: 20 ㎡ Suofeiya Home Collection Co.Ltd(002572) full house customization + 8-piece Chivas furniture sets (leather sofa + rock board coffee table + rock board / solid wood dining table + dining chair) + 2-piece American Shuda bedroom sets (LEATHER BED + latex mattress) + 3 ㎡ Suofeiya Home Collection Co.Ltd(002572) background wall + FREE 9999 yuan, 1 set of 7m cabinet + 999 yuan plus 7298 yuan Casati cigarette stove.
Suofeiya Home Collection Co.Ltd(002572) the whole cabinet leads the upgrading of kitchen and meal customization demand, and the 39800 whole customized package is expected to further promote the customer unit value
According to the press conference information, Suofeiya Home Collection Co.Ltd(002572) put forward the new concept of “whole cabinet” for the first time. The first Suofeiya Home Collection Co.Ltd(002572) whole cabinet system is equipped with six functional systems, including meal preparation system, frying system, steaming and baking system, light kitchen system, storage system and dining bar system, leading cabinet customization from the era of single products to the era of integrated whole kitchen and meal solutions; At the same time, it took the lead in the standard allocation of high-end kitchen electricity Casati across the line, and created a new benchmark in the cabinet industry with the standard of “good cabinet with good electricity”. For rough users, Suofeiya Home Collection Co.Ltd(002572) jointly launched 39800 brand customized packages for the whole family with leaders in subdivided categories such as Chivas and American Shuda, covering many categories such as cabinets, wardrobe, wallboard, electrical appliances, furniture and household products, so as to truly realize one-stop shopping and integrated R & D design. In order to better match the mainstream customization needs of the whole family, Suofeiya Home Collection Co.Ltd(002572) finally determined the package design ideas of “all categories, all rigid needs, all major brands” and “real benefits”, With the five principles of package design of “① each category and each product are necessary for each consumer; ② the number of square meters, linear meters and pieces can meet the basic needs of most consumers; ③ the ordinary price of big brand products; ④ the whole family’s quality control, high-quality pieces and environmental protection in the whole space; ⑤ the enterprise maximizes the benefit of consumers”, a real whole family package with “no routine and real benefits” is created. In addition, for hardbound people, accommodation professionals and fashion professionals, 39800 brand bag packages, 39800 light enjoyment bag packages and 39800 fashion bag packages have been launched respectively to fully cover different home decoration customer groups and further consolidate the multi traffic entrance being built by Suofeiya Home Collection Co.Ltd(002572) . Compared with 19800 and 29800 whole house customized packages, Suofeiya Home Collection Co.Ltd(002572) 39800 whole house customized packages are highly competitive and are expected to further boost the customer unit value.
In 2021, the provision of bulk accounts receivable is sufficient. In 2022, the company may go into battle with light equipment. According to the annual performance forecast of 2021 released on January 29 Suofeiya Home Collection Co.Ltd(002572) , the company expects to realize an operating revenue of 10.023-10.441 billion yuan in 2021, with a year-on-year increase of 20% – 25%; The net profit attributable to the parent company was 100-150 million yuan, a year-on-year decrease of 91.61% – 87.42%; The net profit attributable to the parent company after deducting non-profit was 20-70 million yuan, a year-on-year decrease of 98.09% – 93.33%. In 2021q4, the company realized an operating revenue of RMB 2.780-3.197 billion, a year-on-year decrease of 14.70% – 1.88%; The net profit attributable to the parent company lost 699-749 million yuan, and the net profit attributable to the parent company lost 721-771 million yuan after deducting non profits.
The company’s profit declined significantly in 2021, mainly due to the company’s provision for impairment losses on accounts receivable and commodities issued by bulk customers. By the end of December 2021, the company’s total balance of accounts receivable and goods issued to Evergrande was 1.185 billion yuan, including 803 million yuan of accounts receivable and bills, 352 million yuan of prepayment for house purchase, and 30.1632 million yuan of goods issued. The company made a special credit impairment loss of about 900 million yuan for Evergrande, with an accrual ratio of more than 76%. After withdrawing a high proportion of accounts receivable from bulk customers, the bad debt risk is basically released, and it is expected to be light in 2022. After reducing the impairment loss of Evergrande’s business, the net profit attributable to the parent company in 2021 was 1.0-1.05 billion yuan, a year-on-year decrease of 11.93% – 16.12%; Among them, the net profit attributable to the parent company in 2021q4 was 151-201 million yuan, a year-on-year decrease of 59.38% – 69.48%. The short-term pressure on the company’s 21q4 profit margin is mainly due to: (1) the price rise of upstream raw materials is obvious, while the price of the company’s products does not rise at the same time; (2) The company has increased the cost investment in the whole decoration and milanna new business department, and increased the support subsidies to dealers.
Upgrade the whole customization strategy and continue to promote the development of “Omni channel + multi brand + whole category”. In December 2021, Suofeiya Home Collection Co.Ltd(002572) officially launched the “whole customization” strategy from the perspective of users, upgraded the brand positioning from “cabinet customization expert” to “wardrobe | whole customization”, and moved forward from selling products to selling space, The extension of categories lays a solid foundation for the further improvement of customer unit value in the future. In addition, the company continues to improve the brand matrix, covering different levels of markets with the combination of Suofeiya Home Collection Co.Ltd(002572) , Simi, Milana and Huahe brands, and different brands are presented in the form of all channels and all categories; In terms of channels, after substantial adjustment, the competitiveness of retail channels may be gradually improved, and the construction of new channels such as packing and carrying bags has been steadily promoted. The company’s products, brands and channels have undergone in-depth changes, and positive results are expected to gradually appear.
Investment suggestion: the company continues to promote the development of “all channels + multi brands + all categories”, upgrade the customization strategy of the whole company, lead the positive change of retail channels, accelerate the expansion of new channels such as packing & carrying bags, and optimize the structure of bulk customers. We estimate that the operating revenue from Suofeiya Home Collection Co.Ltd(002572) 2021 to 2023 will be 10.142 billion yuan, 11.973 billion yuan and 13.979 billion yuan respectively, with a year-on-year increase of 21.42%, 18.05% and 16.76%; The net profit attributable to the parent company was 125 million yuan, 1.403 billion yuan and 1.701 billion yuan respectively, with a year-on-year increase of – 89.51%, 1021.10% and 21.26%. The corresponding PE was 170.8x, 15.2x and 12.6x, and the investment rating of Buy-A was given.
Risk warning: the implementation of the whole customized strategy is less than the expected risk; Channel development is less than expected risk; Continuous downside risk of real estate; Industry competition intensifies risks, etc.
