\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 828 Red Star Macalline Group Corporation Ltd(601828) )
Core view
Event: in 2021, the operating revenue reached 15.513 billion yuan, a year-on-year increase of + 8.97%; The net profit attributable to the parent company was 2.047 billion yuan, a year-on-year increase of + 18.31%, and the net profit attributable to the parent company after deduction of non-profit was 1.658 billion yuan, a year-on-year increase of + 42.62%.
Comments:
The channel developed steadily, and the annual net profit deducted from non parent company increased beautifully. The company has developed steadily in all channels and multiple formats. On the channel side, the number of self operated shopping malls / entrusted shopping malls of the company increased to 95 / 278 respectively throughout the year, and continued to expand the sinking market. On the category side, the company's nine theme pavilions were successfully launched to further expand the category and achieve full category coverage. In terms of single quarter, Q4 of the company achieved a revenue of 4.159 billion yuan in a single quarter, a year-on-year increase of - 11.7%, due to the high base in the same period last year and the repeated impact of the epidemic in the second half of this year; The net profit attributable to the parent company in a single quarter was -18 million yuan, which was mainly due to the one-time impairment of about 220 million yuan for the use right of Weibang household trademark at the end of the year according to the actual operation. Excluding the impact of non recurring profit and loss, the net profit attributable to the parent company after deducting non recurring profit and loss in Q4 single quarter was 189 million yuan.
The comprehensive gross profit margin remained stable, and the decrease of financial expense rate significantly drove the increase of net profit margin. The company's annual gross profit margin increased from + 0.16pcpts to 61.67% year-on-year, and remained basically stable. In terms of expenses during the period, the sales expense ratio + 1.4pcpts to 13.3%, the management and R & D expense ratio + 1.25pcpts to 13.31%, and the financial expense ratio - 1.45pcpts to 15.86%. We believe that it mainly benefited from the company's interest bearing liabilities - 13.88% to 39.1 billion yuan year-on-year, driving the company's asset liability ratio to decline by 3.7pcpts to 57.4%. Under the comprehensive influence, the company's annual net profit margin after deduction of non-profit was + 1.04pcpts to 14.11% year-on-year.
The self operated and home decoration business performed steadily, and the annual operating cash flow increased significantly. In terms of specific businesses, the company's self operated and leasing / entrusted shopping malls / home decoration business / construction and design contributed revenue of RMB 80.95/32.56/13.961499 million respectively, with a year-on-year increase of + 21.1% / - 9.1% / + 14.01% / - 10.17% respectively. Among them, the home decoration business fully relies on the physical network of the company's offline shopping malls, and the number of home decoration stores has increased to 253 in the whole year. The excellent performance of rental income drove the company's operating cash flow to increase significantly. The net operating cash flow of the whole year was 5.381 billion yuan, a year-on-year increase of + 29.35%. Among them, cash / operating income (%) received from sales of goods and services increased from + 6.48 pcpts to 102.64% compared with the same period last year.
Investment suggestion: be optimistic about the leading stores and occupy the leading position of China's home retail for a long time. As the leader of offline home stores, the company's brand is deeply rooted in the hearts of the people. With one-stop full category coverage and Beijing Vastdata Technology Co.Ltd(603138) support, the company still has the ability to focus on traffic. We expect the net profit attributable to the parent company from 2022 to 2024 to be RMB 2.55/29.7/3.33 billion respectively, corresponding to the current market value PE of 14 / 12 / 11x respectively. It is first covered and rated as "overweight".
Risk tip: the epidemic situation is repeated, the channel development is less than expected, and the fair value of investment real estate fluctuates.
