Suofeiya Home Collection Co.Ltd(002572) (002572)
Key investment points
Event: the company recently held the whole customization] new strategy press conference, wedging the whole customization into the new brand logo and brand positioning, and comprehensively upgrading the store image and product series. While locking the flow entrance of the wardrobe and tamping the basic plate, the company has entered a new stage of customization of the whole company.
Clarify the new definition of the whole customization, and further integrate the categories. At the press conference, the company proposed that the core of the whole customization is three key points: homogeneous category, excellent environmental protection and professional enough. In addition to extending extended categories such as furniture, door and wall, soft decoration, the whole customization also needs to expand cross categories such as floors and electrical appliances, and complete the whole category of “wardrobe door and wall with ground power” in one stop, so as to realize the full coverage of consumers’ supporting needs of the whole house. On the whole, the company’s original customized products and door wallboard and other products strengthen the systematic design, and the supporting products such as furniture and household appliances are combined with the strong brands to form category synergy, expand from a single customized product to the whole house, and there is a large room for the improvement of customer unit value.
With the in-depth reform of channel management, dealers are expected to release growth vitality. With the release of the whole customization strategy, the company’s distribution channel management has been comprehensively upgraded: 1) the channel management assessment is more result oriented, mobilize the enthusiasm of the internal sales team, and better develop the market and serve dealers; 2) Fully empower dealers, including active marketing, training team, design service support, etc., encourage dealers to do more and deeper channels, and encourage internal teams to actively serve dealers; 3) Optimize the process of internal team serving dealers, and change from the original multi department docking dealers to a single person in charge, so as to connect dealers more accurately and efficiently and improve efficiency. By the end of Q3 in 2021, Suofeiya Home Collection Co.Ltd(002572) wardrobe has 1728 dealers and 2698 specialty stores. The volume of dealers is large. After the improvement of management efficiency, it is expected to fully stimulate the vitality of traditional retail channels.
Traditional retail + packaged form a joint force of retail brands, and bulk channels go into battle light. In terms of direct packaging, after two years of cultivation, the company’s supply to Shengdu, aispace and other direct packaging customers has increased rapidly. It is expected that as the supply capacity of the company’s joint venture factory with Shengdu climbs, the cooperation between the two sides will further deepen, and the order volume is expected to increase rapidly in 1-2 years. In terms of distribution and assembly, the company gives dealers systematic product support, and direct sales and distribution assembly are effectively complementary. On the whole, the company’s packaging channel is gradually on track, the retail channel radiates new growth momentum, meets the needs of retail customers, and the channel competitiveness is expected to be further improved. In terms of bulk channels, the pressure on receivables is gradually relieved and the customer structure is optimized. The bulk channels are expected to develop steadily in 2022.
Profit forecast and investment suggestions: it is estimated that the EPS from 2021 to 2023 will be 1.49 yuan, 1.76 yuan and 2.09 yuan respectively, and the corresponding PE will be 15 times, 13 times and 11 times respectively, maintaining the “buy” rating.
Risk tips: the risk of changes in the real estate market, the risk of sharp fluctuations in raw material prices, and the risk of intensified market competition.
