\u3000\u3 Shengda Resources Co.Ltd(000603) 385 Huida Sanitary Ware Co.Ltd(603385) )
Event: the company issued the annual report of 2021. During the reporting period, the company achieved a revenue of 3.893 billion yuan, a year-on-year increase of 20.98%; The net profit attributable to the parent company was 235 million yuan, a year-on-year decrease of 23.44%; The basic earnings per share is 0.62 yuan / share. Among them, the company achieved a revenue of 1.054 billion yuan in a single quarter in the fourth quarter, a year-on-year increase of 6.71%; The net profit attributable to the parent company was 09 million yuan, a year-on-year decrease of 88.63%.
The cost of energy and raw materials is rising, and the company's gross profit margin is under pressure. During the reporting period, the company's comprehensive gross profit margin was 27.66%, down 3.67% year-on-year. Among them, the single quarter gross profit margin in the fourth quarter of 2021 was 24.69%, down 1.91% year-on-year and 4.99% month on month. The company's gross profit margin declined, mainly because: in 2021, the company's fuel and power costs, manufacturing expenses and raw material costs increased significantly, with a year-on-year increase of 39.12%, 36.07% and 28.19% respectively.
The expense rate increased slightly and the net interest rate decreased significantly year-on-year. The company's expense rate during the period was 20.48%, with a year-on-year increase of 0.25%. Among them, the sales expense ratio was 8.29%, with a year-on-year increase of 0.06%; The management expense ratio was 7.38%, with a year-on-year increase of 0.59%; The financial expense ratio was 0.52%, a year-on-year decrease of 0.51%; The R & D expense ratio was 4.29%, with a year-on-year increase of 0.1%. In terms of net interest rate, during the reporting period, the company's net interest rate was 6.11%, down 3.75% year-on-year. Among them, the company's net interest rate in 21q4 single quarter was 0.04%, down 8.42% year-on-year and 10.42% month on month.
The steady growth of various categories and the coordinated development of domestic and foreign sales. During the reporting period, the company's sanitary ceramics / hardware sanitary ware / wall and floor tiles / bathroom cabinet / bathtub shower room / other businesses achieved revenue of RMB 1.935/6.56/5.95/2.76/1.42/234 billion respectively, with a year-on-year increase of 15.57% / 22.05% / 40.5% / 23.04% / 36.67% / 5.69% respectively. Among them, the revenue from domestic sales was 2.868 billion yuan, a year-on-year increase of 18.93%, accounting for 74.73%; By the end of 2021, the company had obtained product certification from 17 countries and regions such as the United States, Canada and Europe and five factory certification, and achieved a revenue of 970 million yuan, a year-on-year increase of 25.43%, accounting for 25.27%.
Retail and packaging channels are driven by two wheels, and multi-channel enables sales in China. In terms of retail channels, the company accelerated the construction of exclusive stores, optimized the dealer system, integrated Wuxi Online Offline Communication Information Technology Co.Ltd(300959) marketing, increased the market share, and achieved an operating revenue of 2.002 billion yuan, a year-on-year increase of 25.77%, accounting for 52.14%. In 2021, the company opened 350 new stores and upgraded 240 stores, with a total of 2077 domestic stores, with a total area of 399800 square meters, including 1779 bathroom stores and 298 ceramic tile stores; In terms of decoration channels, in 2021, the company reached cooperation with head decoration enterprises such as Dianshi home decoration, famous craftsman decoration, Jinhuang decoration, Yezhifeng decoration, Fanglin decoration and current decoration, which is expected to continue to grow in the future.
Investment suggestion: the company has excellent R & D strength, realizes high product power, continues to expand channel layout, optimize retail channels, overweight and packaged channels, and has strong core competitiveness. It is expected that the company will realize eps1 in 2022 / 23 / 24 05 / 1.26/1.48 yuan / share, corresponding to 9x / 7X / 6x PE, maintaining the "recommended" rating.
Risk tip: the risk that the economic growth is less than expected; The risk of intensified market competition.
