\u3000\u3 China Vanke Co.Ltd(000002) 572 Suofeiya Home Collection Co.Ltd(002572) )
Event: the company released its annual report for 2021, and achieved an operating 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 net profit attributable to the parent company after deduction was 32 million yuan, a year-on-year increase of – 96.98%.
Comments:
The operating income is close to the upper limit of the previous notice, and the deduction of non net profit is under pressure due to the impact of impairment. The early release of the company’s transformation is close to the upper limit of the annual revenue. The reason for the large change in net profit attributable to the parent company after deducting non assets is that the company made a total of 909 million yuan of provision for impairment of various assets for Evergrande during the year. If the impact of impairment is excluded, the company’s annual net profit attributable to the parent company is about 1.032 billion yuan, a year-on-year increase of – 13.43%. From the perspective of single quarter, the company’s Q4 single quarter revenue was 3.163 billion yuan, a year-on-year increase of – 2.92%, and the net profit attributable to the parent was – 726 million yuan, and the net profit attributable to the parent after deduction was – 759 million yuan. Among them, Q4’s single quarter revenue decreased slightly. We believe that it is mainly due to the company’s active control of the volume of bulk business. According to our calculation, Q4’s bulk business achieved a revenue of about 443 million yuan, a year-on-year increase of – 42.49%.
The rising cost of raw materials and the rapid growth of new businesses have affected the gross profit margin to decline. The company’s annual gross profit margin rose from -3.35pcpts to 33.21% year-on-year. On the one hand, due to the rise of raw material prices, the company’s production costs increased, but the product sales prices were not adjusted simultaneously, and the company also gave greater support to dealers, resulting in the decline of the company’s gross profit margin; On the other hand, the company’s self-supporting packaging business and the new brand milanna were launched into the market during the year. The production efficiency is still climbing, and the investment in marketing has increased, which has reduced the company’s gross profit level to a certain extent. The company’s period expense control is still relatively effective, and the period expense rate is + 0.76 pcpts to 20.15% year-on-year, of which the sales expense rate / management and R & D expense rate / financial expense rate are 9.7% / 9.8% / 0.65% respectively.
The wooden door and decoration business grew beautifully, the proportion of retail business increased, and the operating cash flow increased significantly. In terms of business, the annual revenue of wardrobe / cabinet / wooden door was 8.269/14.20/458 billion yuan respectively, with a year-on-year increase of + 23.38% / + 17.25% / + 56.86% respectively; In terms of channels, dealers / direct sales / bulk channels achieved revenue of RMB 8.360/3.42/1.604 billion respectively, with a year-on-year increase of + 27.99% / + 36.94% / + 6.64% respectively. The annual revenue of the whole packaging channel was 529 million yuan, a year-on-year increase of 3 times. The increase in the proportion of C-end business drives the net operating cash flow of the whole year to + 23.93% year-on-year to RMB 1.419 billion.
Investment suggestion: sail “the whole family” and sail away by light boat in 2022. Optimistic about the whole customization strategy to drive the improvement of channel conversion rate and customer unit price. We maintain the profit forecast. It is estimated that the net profit attributable to the parent company from 2022 to 2024 will be 13.7/16.9/2.01 billion yuan, corresponding to the current market value PE of 14/11/9x, maintaining the “buy” rating.
Risk tip: real estate policy regulation risk, raw material prices fluctuate sharply, and channel development is less than expected.
