\u3000\u30 China Baoan Group Co.Ltd(000009) 10 Dare Power Dekor Home Co.Ltd(000910) )
Event: on March 28, Dare Power Dekor Home Co.Ltd(000910) released the annual report of 2021. In 2021, the company achieved an operating revenue of 8.751 billion yuan, a year-on-year increase of 20.46%; The net profit attributable to the parent company was 595 million yuan, a year-on-year decrease of 4.86%; The net profit attributable to the parent company after deduction was 557 million yuan, a year-on-year decrease of 7.04%. Among them, 21q4 company achieved an operating revenue of 2.614 billion yuan, a year-on-year increase of 0.24%; The net profit attributable to the parent company was 116 million yuan, a year-on-year decrease of 41.48%; The net profit attributable to the parent company after deduction was 112 million yuan, a year-on-year decrease of 41.45%.
In the 21st year, revenue growth picked up and actively promoted the expansion of new categories
After the frequent risk events brought by real estate regulation in the second half of 2021, the company actively changed its business strategy, and the b-end channel tended to develop stably. Therefore, the revenue growth rate of 21q4 was adjusted. However, from the perspective of the whole year, the revenue growth rate in 2021 is more than 20%, which is significantly higher than that in previous years, and the business fundamentals are expected to continue to improve.
In terms of products, the company's traditional wood flooring business realized a revenue of 6.122 billion yuan in 2021, with a year-on-year increase of 14.89%; The medium and high density board business realized a revenue of 1.861 billion yuan, a year-on-year increase of 25.69%; Laminate and other businesses realized a revenue of 649 million yuan, a year-on-year increase of 59.38%; The revenue of wooden door and cloakroom business was 73 million yuan, a significant increase over 5.62 million yuan last year. The company actively promoted product research and development. In 2021, it successfully launched new categories such as sports flooring, outdoor flooring and new decorative wallboard. In addition to traditional wood flooring, its business also achieved rapid growth.
The gross profit margin is affected by raw materials in the short term, and the cost control during the period is good
In terms of profitability, the gross profit margin of the company's sales in 2021 was 26.05%, a year-on-year decrease of 3.39 PCT; The net interest rate was 7.04%, a year-on-year decrease of 1.70pct. We expect the gross profit margin to decline, mainly due to the low utilization rate of wood-based panel capacity and the rise in raw material prices. In terms of period expenses, the company's period expense rate in 2021 was 17.32%, a year-on-year decrease of 1.10pct. The sales expense rate, management expense rate (including R & D expenses) and financial expense rate increased to 7.60%, 9.17% and 0.55% respectively year-on-year from + 0.55pct, -1.25pct and -0.39pct. In terms of cash flow, the net operating cash flow of the company in 2021 was 596 million yuan, basically the same as the profit; The cash in hand was 2.167 billion yuan, a year-on-year increase of 183 million yuan, and the overall performance was still stable.
Core executives return, and China's first flooring brand is expected to glow with new opportunities
At present, the chairman of the company is Mr. Chen Jianjun, who leads the overall development of the company. In December 2021, Mr. Wu Guhua announced his return to the company and served as president and Secretary of the board of directors. After the core executives are in place, we expect the company's operation and management team will be gradually improved. Based on the company's brand, channels, products and other aspects still remain ahead, the floor faucet is expected to glow with new machines.
Investment suggestion: we estimate that the operating revenue of Dare Power Dekor Home Co.Ltd(000910) 20222024 will be RMB 9.548 billion, RMB 10.708 billion and RMB 12.158 billion respectively, with a year-on-year increase of 9.11%, 12.15% and 13.54%; The net profit attributable to the parent company was 678 million yuan, 774 million yuan and 915 million yuan respectively, with a year-on-year increase of 13.89%, 14.18% and 18.18%. The corresponding PE was 8.3x, 7.2x and 6.1x, and the investment rating of Buy-A was given.
Risk warning: the risk of repeated fluctuation of epidemic situation; Risk of sharp rise in raw material prices; Continuous downside risk of real estate; Industry competition intensifies risks, etc.
