\u3000\u3 Shengda Resources Co.Ltd(000603) 180 Goldenhome Living Co.Ltd(603180) )
Event: the company released its annual report for 2021. During the reporting period, it 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 RMB 338 million, a year-on-year increase of + 15.49%, and the net profit attributable to the parent company after deducting non profits was RMB 263 million, a year-on-year increase of + 10.79%.
Comments:
Retail business has become the main driving force for the company’s revenue growth, and the growth of bulk business has slowed down. From the perspective of single quarter, the company’s Q4 single quarter revenue was 1.228 billion yuan, a year-on-year increase of + 19.87%, and the net profit attributable to the parent was 180 million yuan, a year-on-year increase of + 24.88%. After deduction, the net profit attributable to the parent was 158 million yuan, a year-on-year increase of + 17.47%. The growth rate of revenue and profit in a single quarter was significantly higher than that in Q3. In terms of channels, the company’s distribution / direct sales / bulk / overseas business contributed revenue of RMB 18.78/1.92/11.45/164 million respectively, with a year-on-year increase of + 33.28% / + 0.78% / + 28.22% / + 51.37% respectively. According to our calculation, the company’s distribution / direct sales / bulk / overseas business Q4 achieved revenue of RMB 6.96/0.70/3.93/0.36 billion in a single quarter, with a year-on-year increase of + 32.18% / + 4.36% / + 0.37% / + 50.56% respectively.
Under the pressure of raw material cost, the annual gross profit margin declined. Under the pressure of the sharp rise in the cost of raw materials and energy during the year, the company’s annual gross profit margin increased from -2.24pcts to 30.48% year-on-year. With the effective implementation of the company’s two price increases in the second half of last year, the gross profit margin of Q3 / Q4 single quarter increased from + 3.81/1.46pcts to 31.36% / 32.82% month on month respectively, and the gross profit margin has warmed up. The expenses during the period remained basically stable. The annual expense rate was – 0.27pcts to 21.38% year-on-year, of which the sales expense rate was – 0.02pcts to 11.76%, the management and R & D expense rate was – 0.4pcts to 9.78%, and the financial expense rate was + 0.14pcts to – 0.16%. Under the comprehensive influence, the net interest rate was – 1.28pcts to 9.71% year-on-year.
The performance of kitchen cabinet business is stable, and the channel development of wardrobe wooden door is smooth, driving the high increase of income. Throughout the year, the company’s kitchen cabinets / wardrobe / wooden doors / packaged stores increased by 135 / 197 / 207 / 30 to 1720 / 919 / 388 / 35 respectively. Among them, the development of wardrobe and wooden door channels is progressing smoothly, driving the revenue growth to perform beautifully. In the whole year, the sales revenue of kitchen cabinet / wardrobe / wooden door was 2.48/8.0/0.84 billion yuan respectively, with a year-on-year increase of + 19.62% / + 60.33% / + 242.17% respectively. According to our calculation, the revenue of Q4 single quarter was 834321/0.33 billion yuan respectively, with a year-on-year increase of + 3.96% / + 65.21% / + 214.55%. During the year, the company completed the upgrading of the packaging business model and the orderly construction of packaging channels. In the future, the packaging business is expected to become an important performance supplement of the company.
Investment suggestion: the epidemic disturbance is under pressure in the short term and continues to be optimistic about long-term growth. We maintain the company’s profit forecast. It is estimated that the net profit attributable to the parent company from 2022 to 2024 will be RMB 4.4/5.5/660 million respectively, corresponding to the current market value PE of 11 / 9 / 7X respectively, maintaining the rating of “overweight”.
Risk tip: the development of new channels is less than expected, the completion of real estate is less than expected, and the industry competition is intensified.
