\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 828 Red Star Macalline Group Corporation Ltd(601828) )
Event: the company announced in its annual report that in 2021, it achieved an operating revenue of 15.513 billion yuan, a year-on-year increase of 8.97%, a net profit attributable to the parent of 2.047 billion yuan, a year-on-year increase of 18.31%, and a year-on-year increase of 42.62% in net profit deducted. The company plans to pay a cash dividend of 1.00 yuan (including tax) for every 10 shares.
Comments:
The leading position has been consolidated. In the past 21 years, self operated shopping malls have grown rapidly and the rental rate has been comprehensively improved. By industry, in 2021, the operating revenue of the company’s home business service industry / construction and design service industry / home decoration related services and commodity sales industry changed by + 10.6% / – 10.2% / + 14% year-on-year respectively. Among them, the income of self-supporting and entrusted management increased by + 21% and – 9% year-on-year respectively, and the rental rate of self-supporting and entrusted management malls increased by + 2pct and + 0.7pct respectively. 1) Store business: in 2021, the company accounted for 17.5% of the retail market share of China’s chain home decoration and furniture shopping mall industry, and 7.4% of the market share of home decoration and furniture shopping mall industry (including chain and non chain), ranking first in the industry. By the end of the year, the company had operated 95 self operated shopping malls (3 newly opened), 278 entrusted shopping malls (20 newly opened), 10 strategic cooperation shopping malls and 69 franchised home building materials projects, including 485 home building materials stores / industrial streets. At the same time of channel expansion, the company accelerated the upgrading of store status, built 100 mall shopping malls: 32 No. 1 stores, 9 supreme malls and 59 benchmark shopping malls, completed the construction of more than 300 theme pavilions, and achieved double-digit growth in the overall number of consumers, orders and turnover of shopping malls. The same store growth rate of mature self operated shopping malls in 21 years reached 16.8%. 2) Expanding business: focusing on new retail, tmall stores in the same city create an integrated closed loop of “online display and offline experience consumption” for consumers. At the same time, the company pays attention to building a global marketing platform and all-round drainage. The home improvement business has been deepened, and the construction of a new generation of home improvement platform system project has been continuously increased. A total of 253 home improvement stores have been opened, with clear differentiated business positioning and layered operation by brand.
Gross profit is stable, impairment affects profits, and leverage reduction continues to be promoted. In the 21st year, the company’s comprehensive gross profit margin increased slightly by 0.16pct to 61.67% on a year-on-year basis, mainly driven by changes in business structure. In terms of expenses, the rates of sales, management, R & D and financial expenses in 21 years changed by + 1.4pct, + 1.11pct, + 0.14pct and – 1.4pct respectively. The increase of sales expenses is mainly due to the company’s resumption of normal promotion activities from the epidemic, and the management expenses are mainly due to the company’s resumption of office administrative expenses reduced in 20 years in 21 years. The newly accrued credit impairment loss resulted in a loss of 17.5 million yuan of profit attributable to the parent company and 189 million yuan of non profit deducted in Q4. In the 21st year, the company’s asset liability ratio was 57.4%, a year-on-year decrease of 3.7pct, and the interest bearing liabilities decreased by 6.3 billion yuan to 39.1 billion yuan. In 21 years, the company’s inventory turnover days decreased by 1.75 days to 19.9 days year-on-year, and the net business cycle was -70.73 days. In the 21st year, the net cash flow from operating activities increased by 29.35% year-on-year.
Profit forecast: as the first brand of China’s home chain, the company has significant advantages in strong channels and investment attraction ability, which is difficult to replicate. In recent years, we have continued to deepen the “asset light, operation heavy and leverage reduction”, continue to expand the network in the sinking market through the asset light mode, consolidate the leading position in the industry, and accelerate the development of expansible business at the same time. It is estimated that the net profit attributable to the parent company from 2022 to 2024 will be 2.385 billion yuan, 2.851 billion yuan and 3.356 billion yuan respectively, with a year-on-year increase of 16.5%, 19.6% and 17.7% respectively. At present, the (2022 / 3 / 30) share price corresponds to 15x PE in 2022.
Risk factors: the risk of large-scale outbreak of the epidemic and the risk of fluctuation in the real estate market.
