\u3000\u3 Shengda Resources Co.Ltd(000603) 180 Goldenhome Living Co.Ltd(603180) )
The company released its annual report for 2021 on April 12, with an annual revenue of 3.45 billion yuan, an increase of 30.6% at the same time, maintaining a relatively high growth rate. The company is committed to multi-channel and multi category expansion, with great growth potential, and maintains the buy rating.
Key points supporting rating
Revenue has maintained high growth, and channel expansion has driven a large number of categories. In 2021, the company’s revenue was 3.45 billion yuan, an increase of 30.6% at the same time; The net profit was 340 million yuan, an increase of 15.5% at the same time. Among them, Q4 revenue was 1.23 billion yuan, an increase of 19.9% and net profit was 180 million yuan, an increase of 24.9%. Revenue and profit maintained a high growth rate. In terms of products, the company’s kitchen cabinet business performed steadily, with a revenue of 2.48 billion yuan, an increase of 19.6%, and the wardrobe business grew rapidly, with a revenue of 800 million yuan, an increase of 60.3%. On the one hand, the high increase in multiple categories is due to the company’s broadening of product price band and increasing customer unit value through the introduction of G9 and other high fixed products. On the other hand, the momentum of channel expansion is strong. By the end of the period, the company had 3062 retail channels (+ 569), including 135 / 197 / 207 kitchen cabinets / wardrobe / wooden doors respectively. The expansion of multi category channels promoted the continuous high growth of revenue.
From the perspective of different channels, the growth of bulk retail is high. The retail channel revenue was 2.07 billion yuan, an increase of 29.4% at the same time, mainly because the company actively promoted the channel sinking reform and strengthened the business district management. At the same time, promote the upgrading of the original home decoration and decoration business model, strengthen the coverage of retail channels and enhance market competitiveness. The revenue from bulk channels was 1.15 billion yuan, an increase of 28.2% at the same time, maintaining the trend of high growth against the trend. On the basis of strengthening bulk risk management, the company has increased the acquisition of high-quality real estate customer resources, which is expected to maintain long-term benign growth in the future.
The expenses are well controlled and there are enough orders in the future. The gross profit margin in 2021 was 30.5%, down 2.2pct at the same time, mainly due to the rise in the price of raw materials and the failure to fully transfer the cost of bulk business. During the period, the expense rate decreased steadily, and the management expense rate decreased by 0.45pct, indicating the company’s good ability to control expenses. At the end of the period, the company’s contract liabilities were 420 million yuan, an increase of 20.1% at the same time, indicating the company’s good order receiving situation and good growth momentum.
It is optimistic that the company will maintain rapid development under the expansion of diversified product channels. In terms of retail, the company firmly carries out category integration and relies on Star kitchen cabinets to drive the rapid and large-scale volume of wardrobe wooden doors. The new categories are still in the stage of rapid expansion. It is expected that the wardrobe and wooden door channels will continue to grow rapidly in 2022. In terms of bulk business, in 2021, the company signed strategic centralized purchase agreements with a number of high-quality real estate enterprises to ensure long-term sound development. We are optimistic that the company will increase its market share driven by multiple product channels.
Valuation
It is estimated that the revenue from 2021 to 2023 will be 4.37/53.0/6.26 billion yuan, the net profit will be 4.3/5.1/6 billion yuan, and the earnings per share will be 2.8/3.3/3.9 yuan respectively; The price earnings ratio is 11 / 10 / 8 times respectively. Maintain buy rating.
Main risks of rating
Industry competition intensifies, new product expansion fails to meet expectations, and raw material prices fluctuate
