\u3000\u3 China Vanke Co.Ltd(000002) 572 Suofeiya Home Collection Co.Ltd(002572) )
The company released its annual report for 2021 on April 11, with an annual revenue of 10.41 billion yuan, an increase of 24.6% at the same time. The company adheres to the strategy of “all channels, multi brands and all categories”, has great growth space in the future, and maintains the overweight rating.
Key points supporting rating
Steady growth in revenue, multi-channel, multi brand, full category strategy. In 2021, the company’s revenue was 10.41 billion yuan, an increase of 24.6% at the same time; The net profit was 120 million yuan, down 89.7% at the same time. Excluding the impact of Evergrande impairment, the company’s annual net profit decreased by about 13.4%. By channel, the company’s retail channel revenue was 8.7 billion yuan, an increase of 27.8%, maintaining a high growth trend. By the end of the period, the company had 4863 retail channels (+ 454). The company increased the promotion of full category and multi brand strategy, and added 209 and 212 brand stores in Mumen and Milana respectively. The revenue from bulk business was 1.6 billion yuan, an increase of 6.6% at the same time. During this period, the company vigorously optimized the proportion of customers in bulk business, and is expected to maintain the health and sustainability of bulk business in the future.
By category, wardrobe and kitchen cabinet grew steadily. By category, the revenue of the company’s wardrobe business was 8.27 billion yuan, an increase of 23.4% at the same time. During this period, the company increased consumer insight, increased the proportion of environmental protection products kangchun board to 90%, and realized a customer unit price of 14491 yuan / unit at Suofeiya Home Collection Co.Ltd(002572) factory end, an increase of 9.6% at the same time, driving the steady growth of the wardrobe business. The income of kitchen cabinet business increased by 17.3% to 1.42 billion yuan. The new category of wooden doors was 460 million yuan, an increase of 56.9%. In the future, under the grand strategy of multi category integration, the kitchen and clothing business is expected to grow in multiple ways.
The gross profit margin fluctuates under the influence of multiple factors, and the orders on hand are good. The gross profit rate of raw materials and new brands increased by 33.3% in 2024t and 2022.3% in the same period. During the period, the sales expense rate increased by 0.5pct, mainly due to the recovery of labor and travel expenses to the pre epidemic level. At the end of the period, the company’s contract liabilities were 990 million yuan, an increase of 24.2%, indicating that the company had sufficient orders on hand at the end of the period.
Optimistic about the steady increase of the company’s market share in the future. In terms of channels, the company innovated and launched “whole customization” to match the needs of users with the industry-leading whole category ecology and improve the conversion rate and customer unit value. On the other hand, the company has strengthened the promotion of milanna brand, and the new brand is expected to continue to expand. We are optimistic that the market share of the company will be further concentrated to the leader under the strategy of all channels, multi brands and all categories.
Valuation
It is estimated that the company’s revenue from 2022 to 2024 will be 12.18/14.03/15.94 billion yuan respectively, with an increase of 17.0% / 15.2% / 13.6%, and the net profit attributable to the parent company will be 13.8/16.5/1.95 billion yuan, with an increase of 1025.2% / 19.6% / 18.2%, corresponding to 14 / 11 / 10 times of PE respectively. Maintain the overweight rating.
Main risks of rating
The price of raw materials fluctuates, the industry competition intensifies, and the expansion of new categories is less than expected
