\u3000\u3 Shengda Resources Co.Ltd(000603) 801 Zbom Home Collection Co.Ltd(603801) )
Event: the company released the performance express of 2021, and achieved an operating revenue of 5.153 billion yuan during the reporting period, a year-on-year increase of + 34.17%; The net profit attributable to the parent company was 506 million yuan, a year-on-year increase of + 27.84%; The net profit attributable to the parent company after non deduction was 460 million yuan, a year-on-year increase of + 28.31%; The basic earnings per share was 1.62 yuan / share, a year-on-year increase of + 28.31%.
Comments:
The high growth of wardrobe business promoted the company’s annual revenue performance to slightly exceed expectations. Throughout the year, the company’s kitchen cabinet business revenue maintained steady growth, the wardrobe and wooden door business continued to make efforts, and the revenue increased rapidly, driving the company’s annual revenue performance to slightly exceed expectations. In terms of single quarter, the company’s Q4 single quarter revenue was 1.831 billion yuan, a year-on-year increase of + 24.70%, continuing the rapid growth trend. The net profit attributable to the parent company in a single quarter was 206 million yuan, a year-on-year increase of + 3.95%; In a single quarter, the net profit attributable to the parent company after non deduction was 170 million yuan, a year-on-year increase of – 1.59%; The net profit margin attributable to the parent company decreased by 0.89pcpts to 9.30% month on month compared with Q3 after deducting non profits in a single quarter, and the profitability is still under pressure. We believe that the reasons are as follows: (1) the proportion of wardrobe and wooden door business income with relatively low gross profit margin increased rapidly, reducing the overall gross profit level of the company; (2) The price of raw materials rose sharply during the year. With the increase of the volume of wardrobe and wooden door business, the scale effect is released one after another. The superposition company further pays attention to cost reduction and efficiency increase, and is optimistic about the gradual recovery of the company’s profitability.
Focus on retail business and gradually optimize the channel structure of the company. For bulk business, the company continues to optimize the customer structure, effectively control customer risks, pay attention to the high-quality and stable operation of bulk business, and the healthy and benign business scale. At the same time, the company has always attached importance to the development of retail business, and retail stores have expanded steadily. By the end of the third quarter of 2021, the number of kitchen cabinets / wardrobe / wooden doors / IK whole house customized / Direct stores of the company had reached 1717 / 1597 / 322 / 58 / 34 respectively. It is expected that the opening speed of wooden door wardrobe business is expected to be further accelerated in 2022. In addition, the company has actively arranged the packaging business, and it is expected that the growth rate of the company’s packaging business throughout the year is also expected to achieve a beautiful performance.
Investment suggestion: healthy business structure and recovery of profitability. The company has always attached importance to the risk control of bulk business and prospectively optimized the customer structure, so as to make the development of the company high-quality and stable and the business structure benign and healthy. At the same time, the company’s profitability is expected to further improve with the scale effect of wardrobe and other businesses. However, considering the rapid increase in the scale of wardrobe, wooden door and package business with low gross profit margin, we slightly lowered the company’s profit forecast. It is estimated that the net profit attributable to the parent company in 20222023 will be 630 / 760 million yuan respectively (original forecast value: 660 / 800 million yuan), corresponding to the current market value PE of 13 / 11x respectively, maintaining the “buy” rating.
Risk tip: the uncertainty of real estate policy regulation, the fluctuation of raw material price and the intensification of industry competition.
