\u3000\u3 Shengda Resources Co.Ltd(000603) 008 Xlinmen Furniture Co.Ltd(603008) )
Key investment points
Event: Xlinmen Furniture Co.Ltd(603008) released the 2021 annual report. In 2021, the company achieved a revenue of 7.772 billion yuan, an increase of 38.21% at the same time; The net profit attributable to the parent company was 559 million yuan, an increase of 78.29% at the same time; The non net profit deducted was 496 million yuan, an increase of 58.19% at the same time; In a single quarter, the revenue of Q4 company was 2.729 billion yuan, an increase of 25.74% at the same time; The net profit attributable to the parent company was 185 million yuan, an increase of 38.83% at the same time. Since shengxihuashi will no longer be included in the scope of consolidated statements since 2021, after excluding the impact of consolidated statements, the company's revenue will increase by 45%, the net profit attributable to the parent company will increase by 71% and the net profit deducted from non net profit will increase by 51% in 2021. In a single quarter, the revenue of 21q4 company increased by more than 30% year-on-year, and the net profit attributable to the parent company increased by single digits year-on-year, which was mainly affected by the high base and the impairment of some bills (Q4 credit impairment loss of 49.71 million).
Implement the brand growth strategy, increase investment and be optimistic about the release of scale effect. 1) In terms of profitability, after unifying the freight standard and excluding the impact of film and television business, the company will achieve a gross profit margin of 32.00% (+ 1.49 PCT.) in 2021 under the same standard; The net interest rate attributable to the parent company is 7.19% (+ 1.09pct.); The net profit margin after deduction is 6.38% (+ 0.25pct.). 2) In terms of period expenses, excluding the impact of the transfer of transportation expenses from expenses to costs, under the same caliber, the sales expense rate is 15.36% (+ 2.66pct.), Mainly due to the increase of sales channel fees, advertising and e-commerce fees; The rate of administrative expenses is 4.04% (-0.77pct.); The financial expense rate is 0.67% (-0.61pct.); The R & D expense rate is 2.36% (+ 0.14pct.). 3) In terms of cash flow, the net cash flow from operating activities of the company in 2021 was 704 million yuan (- 4.86%), which was mainly due to the increase of sales scale and corresponding expenditure in the current period.
Business side: Q4 independent brand retail business continued to grow, and the OEM business was repaired month on month. 1) In 2021, the revenue of independent brand retail business was 5.17 billion yuan (+ 65% YoY), and that of 21q4 was 1.9 billion yuan (+ 39% YoY). By brand, MD & xiatu's annual revenue is 650 million yuan (+ 23% YoY), and Xlinmen Furniture Co.Ltd(603008) brand revenue is 4.53 billion yuan (+ 77% YoY). By channel, the annual revenue of offline channels is 4.08 billion (+ 65% YoY), which is expected to increase by 35% in Q4; The annual revenue of online channels is 1.1 billion (+ 63%yoy), which is expected to increase by 53% in Q4. The growth of Q4 in the company's online channels increased month on month. Affected by the high base, the growth rate of Q4 in offline channels decreased, but it is still in a large-scale trend throughout the year. The core driving force comes from the sinking of channels, the improvement of supporting rate and customer unit value. 2) In 2021, the engineering business had a revenue of 470million yuan (+9%yoy) and 21q4 had a revenue of 150million yuan (+9%yoy). It is expected that the total amount of engineering business will remain stable. 3) In 2021, the revenue of OEM business was 2.13 billion yuan (+ 19.2% YoY), and the revenue of 21q4 was 680 million yuan (+ 29% YoY), which was repaired month on month. In 2021, the company's own brand retail business will lead at a high speed. In 2022, it is expected to continue the high growth trend and steadily increase the brand market share.
Channel side: Wuxi Online Offline Communication Information Technology Co.Ltd(300959) Omni channel sales network is taking shape, and it is expected to maintain high-speed store opening in 2022. By the end of 2021, the number of terminal stores of the company had totaled 4495, with a net increase of 852. By brand, there are 3899 Xlinmen Furniture Co.Ltd(603008) stores (+ 759), including 2837 Xlinmen Furniture Co.Ltd(603008) main brands (+ 497); 1062 Ximian distribution stores (+ 262); 596 M & D and xiatu stores (+ 93). The company's "1 + n" Omni channel sales network with offline stores and online platforms as the core and supplemented by distribution stores and community stores is gradually taking shape. Looking forward to 2022, relying on multi brand matrix, the company is expected to maintain the rhythm of opening stores at medium and high speed.
Employee Stock Ownership & equity incentive shows confidence in development and is optimistic about long-term development. In December 2021, the company successively released the employee stock ownership plan (accounting for 2.9% of the total share capital) - stock option incentive plan (accounting for 1.03% of the total share capital), covering a total of 209 employees, fully binding the interests of the company and the core backbone; The assessment objectives correspond to the compound growth rate of income of 27.0% and profit of 40.1% in 20-24 years. This equity incentive and employee stock ownership plan is conducive to mobilizing the enthusiasm of employees, further enhancing the development momentum of the company and fully demonstrating the development confidence of the company. The company's management reform dividend is expected to continue to be released and is optimistic about the long-term share improvement.
Investment suggestion: the company focuses on the main furniture industry, builds its own brand and omni-channel sales network, and is expected to grow steadily. We expect that the company's sales revenue from 2022 to 2024 will be RMB 9.67 billion, 11.99 billion and 14.76 billion, with a year-on-year increase of 24.4%, 24.0% and 23.1%, and the net profit attributable to the parent company will be RMB 730 million, 950 million and 1.23 billion, with a year-on-year increase of 31.2%, 29.7% and 29.5% (according to the annual report, the profit forecast of the previous 20222023 is RMB 730 million and 930 million), and EPS is RMB 189, 2.45 and 3.18, maintaining the "buy" rating.
Risk tips: the risk of decline in the prosperity of real estate, the risk of higher than expected cost investment, and the risk of intensified industry competition
