\u3000\u3 Shengda Resources Co.Ltd(000603) 008 Xlinmen Furniture Co.Ltd(603008) )
Event: the company issued the annual report of 2021. During the reporting period, the company achieved a revenue of 7.772 billion yuan, a year-on-year increase of 38.21%; The net profit attributable to the parent company was 559 million yuan, a year-on-year increase of 78.29%; EPS1. 45 yuan / share. Among them, the company achieved a revenue of 2.729 billion yuan in the fourth quarter, a year-on-year increase of 25.74%; The net profit attributable to the parent company was 185 million yuan, a year-on-year increase of 38.83%.
The change of income standards caused the company's gross profit margin to decline year-on-year. During the reporting period, the company's comprehensive gross profit margin was 32%, a year-on-year decrease of 1.76%. Among them, the single quarter gross profit margin in the fourth quarter of 2021 was 33.22%, a year-on-year decrease of 1.06% and a month on month increase of 1.31%. The company's gross profit margin declined, mainly because the company treated the transportation cost as the contract performance cost according to the new revenue standard and adjusted the relevant freight from the sales expense to the operating cost accounting.
Remarkable results were achieved in cost control, driving the year-on-year improvement of net interest rate. The company's expense rate during the period was 22.43%, a year-on-year decrease of 2.01%. Among them, the sales expense rate was 15.36%, a year-on-year decrease of 0.77%; The rate of administrative expenses was 4.04%, a year-on-year decrease of 0.77%; The financial expense ratio was 0.67%, a year-on-year decrease of 0.61%; The R & D expense rate was 2.36%, with a year-on-year increase of 0.14%. During the reporting period, the company's net interest rate was 7.79%, with a year-on-year increase of 1.55%.
The rapid expansion of multi category cooperation has broad growth space in the future. The core mattress business of the company grew rapidly, and the soft beds and sofas performed well, achieving revenue of RMB 3.961/2.42/105 billion respectively, with a year-on-year increase of 38.74%/70.02%/46.88% respectively.
The omni channel layout continues to deepen and the retail capacity is increasingly strengthened. Retail channels: offline, by the end of 2021, the number of stores of the company had reached 4495, with a year-on-year increase of 852, of which, Xlinmen Furniture Co.Ltd(603008) stores had reached 3899 (1062 in Ximian series and 2837 in other series), and M & D stores (including xiatu) had reached 596; On line, the company reached a deep cooperation with the core business platform, and built more than 10 live rooms on the tiktok. At the same time, the company laid out new channels such as supermarkets, home appliances and home decoration in advance. Project Channel: the company takes hotel customers as the core, expands to cruise ships, the army, schools and so on, and establishes long-term cooperation. OEM business channel: the company provides mattress, sofa and other OEM business for well-known household brands at home and abroad, and its customers include IKEA, Oppein Home Group Inc(603833) , Suofeiya Home Collection Co.Ltd(002572) , etc.
Investment suggestion: the company has coordinated development of multiple categories, broad growth space, deepening the omni-channel strategy, and investing heavily in building national brands. It is expected that the company will achieve eps1 in 2022 / 23 / 24 83 / 2.3/2.85 yuan / share, corresponding to PE 15x / 12x / 9x, first coverage, given "recommended" rating.
Risk tip: the risk that the economic growth is less than expected; The risk of intensified market competition.
