\u3000\u3 Shengda Resources Co.Ltd(000603) 180 Goldenhome Living Co.Ltd(603180) )
Event overview
Goldenhome Living Co.Ltd(603180) released the annual report of 2021: in 2021, the company realized an operating revenue of 3.448 billion yuan, a year-on-year increase of + 30.61%; The net profit attributable to the parent company was 338 million yuan, a year-on-year increase of + 15.49%. Quarter by quarter, Q4’s operating revenue in a single quarter was 1.228 billion yuan, a year-on-year increase of + 19.87%; The net profit attributable to the parent company was 180 million yuan, a year-on-year increase of + 24.88%. In Q4, the company’s revenue maintained steady growth in the single quarter, and the growth rate of profit side was higher than that of revenue. In terms of cash flow, the net cash flow from operating activities in 2021 was 403million yuan, a year-on-year -40.07%, of which the net cash flow from Q4 operating activities was 254million yuan, a year-on-year -31.41%, a year-on-year decline, mainly due to the increase in the variety of raw materials purchased due to the development of the company’s various categories, and the company’s appropriate increase in raw material inventory reserves to cope with the epidemic and the rise of raw materials, resulting in a significant increase in the purchase amount year-on-year.
In addition, the company plans to distribute a cash dividend of 1.06 yuan per share (including tax).
Analysis and judgment:
Revenue side: kitchen cabinets grew steadily, and wardrobe grew significantly.
In terms of products, in 2021, the company’s overall kitchen cabinet, overall wardrobe, wooden door and other supporting businesses achieved revenue of RMB 2.480 billion, RMB 800 million, RMB 84 million and RMB 16 million respectively, with a year-on-year increase of + 19.62%, + 60.33%, + 242.17% and + 121.14% respectively. The main business continued to grow rapidly, the kitchen cabinet increased steadily, and the wardrobe, wooden door and other supporting businesses performed brilliantly. The company gives full play to the advantages of the core categories of customized kitchen cabinets, speeds up the development of wardrobe and wooden door business, strengthens the coordination among categories with the help of whole house customization, and realizes the integrated development of bathroom balcony, smart home, kitchen electricity, household products and other categories.
By channel, in 2021, the sales of the company’s distribution stores, Direct stores, bulk businesses and overseas sales were RMB 1878 million, 192 million, 1145 million and 164 million respectively, with a year-on-year increase of + 33.28%, + 0.78%, + 28.22% and + 51.37% respectively. The main channels increased steadily. The retail end company further strengthened the channel construction, further promoted the omni channel development mode and seized the market share. In 2021, the company added 569 to 3062 stores, including 1720, 919, 388 and 35 stores of Goldenhome Living Co.Ltd(603180) , gold medal wardrobe, gold medal wooden door and gold medal packaged stores respectively, and 135, 197, 207 and 30 stores in the whole year. In terms of bulk channels, strengthen risk management, increase the acquisition of high-quality real estate customer resources, constantly optimize the customer structure, and speed up the expansion of wardrobe, wooden door and other categories in bulk channels by relying on the advantages of kitchen cabinets. In terms of overseas markets, the company has set up a manufacturing base in Southeast Asia to accelerate the expansion of markets in North America, Australia and Asia.
Profit side: Q4’s profitability improved slightly, and the expense rate was well controlled during the period.
In terms of profitability, in 2021, the company’s gross profit margin and net profit margin were 30.48% and 9.71% respectively, with a year-on-year decline of -2.24pct and -1.33pct respectively. The profitability decreased mainly due to the rise of raw materials. Among them, the gross profit margin and net profit margin of Q4 in a single quarter were 32.82% and 14.58% respectively, with a year-on-year increase of + 0.14pct and + 0.57pct respectively, and the profitability of Q4 increased slightly. In terms of business, the gross profit margins of the company’s overall kitchen cabinets, overall wardrobe, wooden doors and other supporting facilities in 2021 were 30.31%, 28.90%, 4.42% and 10.10% respectively, with a year-on-year increase of -2.55pct, -0.75pct, + 4.08pct and -3.70pct respectively; By channel, the gross profit margin of distribution stores, Direct stores, bulk businesses and overseas businesses in 2021 were 35.33%, 67.12%, 13.33% and 26.48% respectively, with a year-on-year increase of -0.10pct, + 1.35pct, -5.21pct and -10.13pct respectively. Affected by the rise of raw material prices, the gross profit margin of kitchen cabinets, wardrobe and bulk businesses of the company declined. In terms of period expense rate, the company’s period expense rate in 2021 was 21.38%, with a year-on-year rate of -0.27pct, of which the sales expense rate, management expense rate, R & D expense rate and financial expense rate were 11.76%, 4.65%, 5.13% and – 0.16% respectively, with a year-on-year rate of -0.02pct, -0.45pct, + 0.05pct and + 0.14pct respectively. In Q4, the company’s expense rate during the single quarter was 17.14%, with a year-on-year increase of + 0.00pct, of which the sales expense rate, management expense rate, R & D expense rate and financial expense rate were 9.78%, 3.99%, 4.34% and – 0.97% respectively, with a year-on-year increase of + 0.91pct, -0.48pct, -0.12pct and-0.31pct. The expense rate during the period was well controlled.
Investment advice
As a leading brand of customized home furnishings, the company is optimistic about the steady growth of retail kitchen cabinet business, the rapid development of wardrobe business, the beautiful performance of bulk channels, and the gradual volume of wooden doors, smart home and other new businesses. Considering the repeated epidemic and the impact of raw materials, the previous profit forecast was lowered, and the company’s operating revenue in 22-23 years was reduced from 4.213/5.052 billion yuan to 4.168/5.004 billion yuan respectively; From 22 to 23 years, EPS was lowered from 2.64/3.28 yuan to 2.64/3.17 yuan respectively. It is estimated that the company’s revenue and EPS in 2024 will be 5.980 billion yuan and 3.78 yuan respectively, corresponding to the closing price of 31.64 yuan / share on April 12, 2022, and PE will be 12 / 10 / 8 times respectively, maintaining the “buy” rating.
Risk tips
Industry demand is less than expected; Intensified market competition; New business expansion was less than expected.
