\u3000\u3 China Vanke Co.Ltd(000002) 572 Suofeiya Home Collection Co.Ltd(002572) )
Core view
Revenue growth was stable and profit margin declined. In 2021, the company realized an operating revenue of 10.407 billion yuan, a year-on-year increase of + 24.6%; The net profit attributable to the parent company was 123 million yuan, a year-on-year increase of - 89.7%. The sharp decline in net profit was mainly due to the provision for impairment of individual assets made by the company for the amount received from Evergrande group during the reporting period, totaling 909 million yuan. The gross profit margin was 33.2%, year-on-year -3.4pp. The expense side maintained stable investment, of which the sales expense ratio was +0.5pp to 9.7% year-on-year; The rate of administrative expenses was 9.8%, the same as that of the previous year; The R & D expense ratio was +0.3pp to 2.8% year on year. The operating profit margin was 4.3%, year-on-year -14pp; The net interest rate was 1.5%, year-on-year -13.2pp. The operating efficiency is stable. In 2021, the turnover days of inventory / accounts receivable / accounts payable are 32 / 32 / 64 days respectively, with a year-on-year increase of + 3.7 / - 0.7 / - 0.6 days, and the net business cycle is extended by 3.6 days year-on-year. Cash flow increased steadily. Net operating cash flow was 1.42 billion, a year-on-year increase of + 23.9%.
Category: wardrobe and cabinet grew steadily, while other categories grew rapidly. The income of wardrobe / cabinet / wooden door / floor / other business products was 8.27/14.2/4.6/2.0/0.6 billion yuan respectively, with a year-on-year increase of + 23.4% / 17.3% / 56.9% / 75.2% / 77.1% respectively. Benefiting from the development of big home strategy and the whole customization business, the income of other categories except wardrobe and cabinet has increased rapidly. The gross profit margin increased except for the wardrobe. The wardrobe / cabinet / wooden door / floor / other business products were 35.7% / 26.3% / 17.1% / 8.2% / 55.1% respectively, with a year-on-year increase of - 4.7% / + 3.6% / + 2.6% / + 0.6% / + 5.4%.
Sub channel: the retail business, especially the packaged business, is growing rapidly. Direct stores / distribution stores / bulk / other channels were 3.4 / 83.6 / 16.0 / 36 million yuan respectively, with a year-on-year increase of + 36.1% / 27.4% / 6.2% / 18.6% respectively. In 2020, the business income of the company, including the cooperation of direct decoration enterprises, increased by 3.9 billion yuan year-on-year, including the business income of direct decoration enterprises, with a year-on-year growth of 2.9 billion yuan. The gross profit margins of Direct stores / distribution stores / bulk / other channels decreased, with the gross profit margins of 69.5% / 34.1% / 20.5% / 19.8% respectively, with a year-on-year increase of -5.3pp / - 4.1pp / - 2.9pp / - 0.3pp.
Milanna stores accelerated layout. The retail channel company has established a strong terminal sales network, opened more than 4000 terminal stores, covering 1800 cities and regions in China. By the end of 2021, Suofeiya Home Collection Co.Ltd(002572) / Simi / Suofeiya Home Collection Co.Ltd(002572) Mumen / Huahe Mumen had 2730 / 1122 / 534 / 265 stores respectively, an increase of 11 / 14 / 195 / 22 respectively compared with the end of 2020; The new brand "milanna" began to attract investment independently, and 212 stores were opened in 2021.
Risk warning: repeated epidemic situation; Deterioration of competition; Damaged brand image; Systemic risk.
Investment suggestion: be optimistic about the leading competitive advantage under the channel reform. We are optimistic about the market leading position of Suofeiya Home Collection Co.Ltd(002572) in the field of customized home furnishings, especially in the field of wardrobe for many years, with strong product power, channel power and brand power. It is estimated that the net profit from 2022 to 2024 will be 1.32 billion yuan, 1.63 billion yuan and 1.93 billion yuan respectively, with a year-on-year growth rate of + 976.9%, 23.2% and 18.5%. Maintaining a reasonable valuation corresponds to 18.5 ~ 20.6xpe in 2022, and the reasonable valuation range is 26.9 ~ 29.9 yuan, maintaining the "buy" rating.
