Recently, the 2021 performance released by the “floor king” Dare Power Dekor Home Co.Ltd(000910) showed that the company’s revenue last year was 8.75 billion yuan, a year-on-year increase of 20.46%; The net profit attributable to shareholders of listed companies was 595 million yuan, a year-on-year decrease of 4.86%.
Dare Power Dekor Home Co.Ltd(000910) the management said publicly that last year’s revenue growth was mainly due to the recovery of export business, and some new products such as PVC flooring also played a driving role: “at the same time, the income of tooling and small and medium-sized engineering increased, but the profit brought by this kind of income increase was relatively low, so it was reflected in the income growth, but the profit contribution was not enough.” In addition, the company has not yet achieved revenue balance in the entry of new products and needs time to incubate: “and the growth rate of tooling business began to decline in the fourth quarter of last year.”
China International Capital Corporation Limited(601995) research report said that Dare Power Dekor Home Co.Ltd(000910) performance was slightly lower than expected, the revenue side of the company grew steadily, and the profit side was under pressure, mainly due to the company’s continuous improvement of its competitiveness through product quality + scale advantage + brand effect, and the sales increased steadily, but the rise of raw material prices affected the gross profit margin, resulting in a slight decline in profits.
As of the closing on the last day of March, Dare Power Dekor Home Co.Ltd(000910) share price was 10.78 yuan / share, with the latest market value of 5.901 billion yuan.
Dare Power Dekor Home Co.Ltd(000910) is mainly engaged in the production and sales of flooring and man-made panels. The main products of the flooring business include “holy elephant” wood flooring and “Daya” man-made flooring Dare Power Dekor Home Co.Ltd(000910) on the investor interaction platform, the market share of the company’s wood flooring ranked first in the industry, and the sales volume of the company’s flooring in 2021 was 62.89 million square meters.
The annual report shows that the company’s products are mainly divided into medium and high density board, wood floor, wood door and cloakroom, bamboo, stone plastic floor and others. The revenue of wood floor in 2021 was 6.122 billion yuan, a year-on-year increase of 14.89%, accounting for 69.96% of the total revenue, which supported the total revenue of the company. The gross profit margin of this sector reached 31.3%, a year-on-year decrease of 2.2%.
In addition to the main business of flooring and artificial board, Dare Power Dekor Home Co.Ltd(000910) actively laid out the “big home strategy” and looked for the third growth point. The concept of “big home” has been widely mentioned in the home industry in recent years. Enterprises mainly engaged in flooring gradually extend to wooden doors, cloakrooms, cabinets and so on. In 2021, Dare Power Dekor Home Co.Ltd(000910) the growth rate of “new generation” wooden doors and cloakrooms was indeed the most gratifying. Last year, the revenue was 727889 million yuan, a year-on-year increase of 119501%, accounting for 0.8% of the revenue, and the gross profit margin was 24.6%, a year-on-year increase of 4.2%.
In addition, the revenue of medium and high density board was 1.86 billion yuan, with a year-on-year increase of 25.7%, accounting for 21.3% and a gross profit margin of 10.4%. Bamboo and stone plastic flooring: the revenue was 650 million yuan, with a year-on-year increase of 59.4%, accounting for 7.4%, and the gross profit margin was 17.4%, with a year-on-year decrease of 5 percentage points.
The company’s gross profit margin in 2021 was 26.1%, with a decrease of 3.4 percentage points, mainly due to the rise in the price of raw materials. Under the comprehensive influence, the company’s net interest rate was 6.8%, with a decrease of 1.8 percentage points.
Dare Power Dekor Home Co.Ltd(000910) ‘s main products are flooring and wood-based panel products. The main raw materials of these products are logs, “three residues”, secondary small fuelwood and chemical raw materials. In 2021, affected by the national ecological civilization construction, forestry industrial policies and national and regional policies around the production base, there is an expectation of reduction in wood cutting volume, which also affects the supply of “three residues” and secondary small fuelwood.
Of course, it’s not that Dare Power Dekor Home Co.Ltd(000910) ;, Vohringer Home Technology Co.Ltd(603226) , Kangxin New Materials Co.Ltd(600076) and Elegant Home-Tech Co.Ltd(603221) live.
The return on net assets (ROE) of the year of 2021 is 10.16%, which is second only to the Monalisa Group Co.Ltd(002918) roewas 5.05% and 7.88% respectively.
Meanwhile, Dare Power Dekor Home Co.Ltd(000910) last year, the net cash flow from operating activities decreased by 32.71%, mainly due to the relative increase in cash paid for purchasing goods and receiving labor services. The company also explained that the cash flow generated by the company’s operating activities in the reporting period was 205589 million yuan less than the net profit in the reporting period, mainly including 120658 million yuan of provision for asset impairment, 261 million yuan of depreciation of fixed assets and 188722 million yuan of amortization of intangible assets.
Dare Power Dekor Home Co.Ltd(000910) rising accounts receivable also worried investors. The announcement shows that by the end of 2021, the company’s accounts receivable were 1.905 billion yuan, an increase of 42% over 1.343 billion yuan at the beginning of 2021.
It is worth mentioning that Dare Power Dekor Home Co.Ltd(000910) also disclosed a piece of information about fraud in the disclosure of major events of subsidiaries Dare Power Dekor Home Co.Ltd(000910) wholly owned subsidiary, home legend LLC of the United States, a subsidiary of Shengxiang Group Co., Ltd., became the victim of a telecommunications fraud. The perpetrator invaded the mailbox system of Microsoft company rented by the company, forged fake e-mail, pretended to be a member of the company’s management, forged supplier documents and e-mail paths, and committed fraud, involving about US $3.569 million.
Dare Power Dekor Home Co.Ltd(000910) said that the company had filed with local federal law enforcement authorities in the United States and reported the case to Chinese public security organs. As of the reporting date, the possibility of recovering the stolen funds was low. This event led to an increase of 227549 million yuan in non operating expenses of the company in 2021.
