\u3000\u3000 Jason Furniture (Hangzhou) Co.Ltd(603816) (603816)
Event: on February 19, Jason Furniture (Hangzhou) Co.Ltd(603816) held a “new generation of whole house customization” press conference and launched a one-stop complete whole house package of 49800 yuan, which is self-made, no Patchwork and zero additional items.
Launch a new generation of whole house customization package and continue to promote the integration of large household categories. According to the information of the press conference, the “new generation of whole house customization” launched this Jason Furniture (Hangzhou) Co.Ltd(603816) is a 49800 yuan whole house package with all self-made, no Patchwork and zero added items, including 22m2 customized cabinet + 10 pieces of soft furniture + accessories, including seven categories such as wardrobe, cabinet, sofa, soft bed mattress, dining table and chair and clothes dryer, Upgrade in the six dimensions of environmental protection, appearance, storage, quality, experience and service, and establish a seven in one standard system through integrated R & D, design, production, matching, experience, delivery and after-sales, which not only meets the one-stop shopping needs of consumers, but also gives full play to the collaborative advantages of self-made software and cabinets. The company continues to promote the big home strategy of multi category and multi brand. This time, we believe that we will further provide consumers with one-stop full house solution and accelerate the integration of software and customized categories; At the same time, with the continuous promotion of the thousand store plan, the company’s customized business has entered the period of rapid channel expansion. In addition, the company’s industrial 4.0 production and R & D base project was officially launched, with an investment of up to 1 billion yuan and a total construction area of 220000 square meters. Equipped with industry-leading new high-end equipment, it is expected to realize the informatization, digitization, intelligence and visualization of the whole process, and greatly improve production efficiency and manufacturing capacity.
In the past 21 years, the performance has increased rapidly, domestic and foreign sales have made concerted efforts, and the long-term growth can be expected
According to the company’s performance pre increase announcement in 2021, the company realized a net profit attributable to the parent company of RMB 1.650-1.73 billion in 2021, with a year-on-year increase of 95% – 105%. After restoring the goodwill impairment of RMB 484 million in 2020, it is expected to increase by 24% – 30% year-on-year in 2021; The net profit attributable to the parent company after deducting non-profit is RMB 1.420-1.500 billion, with a year-on-year increase of 140% – 154%. After restoring the impairment of goodwill, it is expected to increase by 32% – 40% year-on-year in 2021. In 21q4, the company realized a net profit attributable to the parent company of 412-492 million yuan in the quarter, which is expected to increase by 29% – 54% year-on-year after restoring the impairment of goodwill; The net profit attributable to the parent company after deducting non-profit is 307-387 million yuan, which is expected to increase by 25% – 58% year-on-year after restoring the impairment of goodwill. The company’s performance increased significantly in 2021, and the net profit returned to the parent company after deducting non profits grew faster, and the operation quality was further improved.
Looking forward to the follow-up, the company’s domestic products and channels will work together. On the one hand, the company continued to promote the transformation of regional retail centers, actively promoted the “1 + N + X” store expansion strategy and the transformation from single store to integrated large store mode, so as to further meet the one-stop shopping needs of consumers; On the other hand, on the basis of the steady growth of leisure sofa, the three high potential categories of functional sofa, mattress and customization of the company are gradually cultivated and mature, and are expected to achieve high-speed growth. In addition, the company’s export business takes the initiative to adjust the management team, which is expected to alleviate the pressure of tariffs and anti-dumping through the construction of Mexico base. At the same time, the pressure of raw materials, shipping and exchange rate is expected to be marginal improved and the profit elasticity can be expected.
Investment suggestion: the leading software management team is excellent, the reform of regional retail center is becoming more and more effective, and the growth is driven by three high potential new categories. The long-term growth can be expected. With the optimization of industry structure, the market share is expected to further increase. We estimate that Jason Furniture (Hangzhou) Co.Ltd(603816) from 2021 to 2023, the operating revenue will be 17.217 billion yuan, 21.540 billion yuan and 26.772 billion yuan, with a year-on-year increase of 35.93%, 25.11% and 24.29%; The net profit attributable to the parent company was RMB 1.698 billion, 2.178 billion and 2.719 billion, with a year-on-year increase of 100.95%, 27.68% and 24.83%. The corresponding PE was 26.1x, 20.4x and 16.3x, and the investment rating of Buy-A was given.
Risk warning: the development of new categories and new channels is not as good as expected; Price fluctuation risk of raw materials; Downside risk of real estate sales; Industry competition intensifies risks, etc.
