\u3000\u3 China Vanke Co.Ltd(000002) 572 Suofeiya Home Collection Co.Ltd(002572) )
Event overview
Suofeiya Home Collection Co.Ltd(002572) released the annual report of 2021. In 2021, the company achieved a revenue of 10.407 billion yuan, a year-on-year increase of + 24.59%; The net profit attributable to the parent company was 123 million yuan, a year-on-year increase of – 89.72%, and the performance was in line with the previous notice; The net profit attributable to the parent company after deduction was 32 million yuan, a year-on-year increase of – 96.98%. Quarter by quarter, Q1, Q2, Q3 and Q4 companies achieved revenue of RMB 1.760 billion, RMB 2.540 billion, RMB 2.944 billion and RMB 3.163 billion, with a year-on-year increase of + 130.59%, + 41.76%, + 15.93% and – 2.92% respectively; The net profit attributable to the parent company was RMB 118 million, RMB 328 million, RMB 403 million and RMB 726 million, with a year-on-year increase of + 812.35%, – 8.68%, + 13.71% and – 246.66% respectively; The net profit attributable to the parent company after deducting non profits was RMB 101, 307, 382 and – 759 million, with a year-on-year increase of 254.49%, + 10.25%, + 3.03% and – 263% respectively. The company firmly promoted the strategic layout of “all channels, multi brands and all categories”, and its revenue increased rapidly year-on-year; The profit side is affected by the rise of costs, the increase of marketing expenses and the superposition of bad debt losses (the impairment of Hengda Group is 909 million yuan). In terms of cash flow, the net cash flow from operating activities in 2021 was RMB 1.419 billion, with a year-on-year increase of + 23.93%, of which the net cash flow from Q4 operating activities was RMB 892 million, with a year-on-year increase of + 34.14%, which was mainly due to the increase of sales volume, the better return speed of funds, and the higher growth rate of cash inflow from operating activities than that of cash outflow from operating activities.
Revenue side: the rise of packaging channels and the rapid development of milanna brand
In terms of channels, in 2021, the company’s dealers’ revenue from retail channels, bulk engineering channels and direct sales channels was about 8.360 billion yuan, 1.604 billion yuan and 342 million yuan respectively, with a year-on-year increase of + 27.99%, + 6.64% and + 36.94% respectively, accounting for 80.33%, 15.41% and 3.29% respectively; Among them, the company’s dealer cooperative installation enterprises superimposed direct signing installation enterprises, with a revenue of 529 million yuan, a year-on-year increase of 3 times in 2020. The decoration and home decoration channels are moving forward to a high-speed development track, which is expected to become a new growth point of the company. In terms of breakdown, the company has 1734 distributors and 2730 specialty stores for the customized products of ” Suofeiya Home Collection Co.Ltd(002572) ” cabinets, of which the number of stores in provincial capital cities accounts for 14% (33% of contribution revenue), the number of stores in prefecture level cities accounts for 20% (23% of contribution revenue), and the number of stores in fourth and fifth tier cities accounts for 66% (44% of contribution revenue); Simi cabinet has 929 distributors and 1122 specialty stores; ” Suofeiya Home Collection Co.Ltd(002572) ” wooden door has 934 dealers, 534 specialty stores and 804 integrated stores; “Huahe” wooden door has 310 dealers and 265 specialty stores; Milanna, its internet light fashion brand, attracted investment independently in 2021. By the end of 2021, there were 360 dealers and 212 stores. By product, in 2021, the company’s wardrobe and its supporting products achieved a revenue of 8.269 billion yuan, a year-on-year increase of + 23.38%; The income of cabinets was 1.42 billion yuan, a year-on-year increase of + 17.25%; Wooden doors achieved a revenue of 458 million yuan, a year-on-year increase of + 56.86%. By the end of December 2021, Suofeiya Home Collection Co.Ltd(002572) factory has achieved a customer unit price of 14491 yuan / order (excluding Simi cabinet and wooden door), a year-on-year increase of + 9.63%; In addition, thanks to the company’s own years of hard work and accumulated insight into environmental protection products, the company’s kangchun board business broke out under the epidemic in 2020. As of September 2021, the company’s customers and orders accounted for nearly 90%, and the Suofeiya Home Collection Co.Ltd(002572) brand has completed the upgrading of the board.
Profit side: the gross profit margin decreased slightly, and the expense rate increased during the period.
In 2021, the gross profit margin and net profit margin of the company were 33.21% and 1.48% respectively, with a year-on-year increase of -3.35pct and -13.17pct; Quarterly, the gross profit margin and net profit margin of Q4 were 28.75% and – 22.85% respectively, with a year-on-year increase of -0.95pct and -12.21pct respectively. The decline in the company’s gross profit margin is mainly due to the rise in the cost of raw materials when the sales price is flat and the company’s increased support for dealers. In addition, the company’s product SKU has increased significantly in the short term, which has reduced the production efficiency due to the superposition of factors such as direct packaging and Milana’s operation, which has also reduced the gross profit margin to a certain extent. The significant decline in net interest rate is mainly due to the impact of the company’s provision for impairment losses. In terms of products, in 2021, the gross profit margin of the company’s wardrobe and its supporting products, cabinets and their accessories and wooden doors were 35.71%, 26.26% and 17.14% respectively, with a year-on-year increase of -4.73pct, + 3.59pct and + 2.56pct respectively; In terms of channels, the gross profit margin of the company’s dealer channels, bulk channels and direct channels in 2021 were 34.05%, 20.47% and 69.52% respectively, with a year-on-year increase of -4.08pct, -2.89pct and -5.32pct respectively. In terms of expenses, the company’s expense rate during 2021 was 20.15%, with a year-on-year increase of + 0.76pct, of which the sales expense rate, management expense rate, R & D expense rate and financial expense rate were 9.70%, 7.01%, 2.79% and 0.65% respectively, with a year-on-year increase of + 0.52pct, -0.31pct, + 0.31pct and + 0.23pct respectively. Quarter by quarter, the expense rate during Q4 was 19.89%, with a year-on-year increase of + 5.33pct, of which the sales expense rate, management expense rate, R & D expense rate and financial expense rate were 10.07%, 6.36%, 2.59% and 0.88% respectively, with a year-on-year increase of + 3.50pct, + 0.56pct, + 0.66pct and + 0.61pct respectively. The company has continuously increased its investment in marketing, resulting in a continuous increase in sales expenses such as labor expenses and travel expenses. In the second half of the year, the company has increased the investment in marketing expenses such as advertising expenses and publicity expenses, so as to prepare for future business development.
Investment advice
The company continues to deepen the strategy of large home furnishing, deeply cultivate the traditional dealer channels, continuously integrate the company’s resources, and cut into the passenger flow channel earlier through cooperation with the strong decoration enterprises across the country. The home decoration and decoration channels are moving towards a high-speed development track, driving the rapid growth of the company’s performance year-on-year. We are optimistic about the development space of Suofeiya Home Collection Co.Ltd(002572) future. Considering the adjustment of the company’s bulk business and the continuous fermentation of the recent epidemic, we lowered the forecast of the company’s revenue of RMB 12.915/15.012 billion from 22 to 23 to RMB 12.160/13.820 billion, and the revenue in 2024 was RMB 15.927 billion; Reduce eps1 in 22-23 years The forecast of 77 / 2.03 yuan is 1.36/1.56 yuan, and the EPS in 2024 is 1.83 yuan. Corresponding to the closing price of 20.53 yuan / share on April 12, 2022, PE is 15 / 13 / 11 times respectively, maintaining the “buy” rating.
Risk tips
1) the tightening of real estate policy has led to a decline in home demand. 2) Market competition intensifies and product pricing may be lowered.
