\u3000\u3 Shengda Resources Co.Ltd(000603) 008 Xlinmen Furniture Co.Ltd(603008) )
Events
The company disclosed the annual report of 2021. In 2021, the company achieved an operating revenue of 7.772 billion yuan, a year-on-year increase of 38.21%, a net profit attributable to the parent company of 559 million yuan, a year-on-year increase of 78.29%, and a deduction of non net profit of 496 million yuan, a year-on-year increase of 58.19%. It is proposed to distribute a cash dividend of 2.8 yuan (including tax) for every 10 shares.
Key investment points
The independent brand retail business has driven the rapid growth of revenue in 21 years, and the growth rate of 21q4 performance has increased month on month. On the revenue side, in 2021, the company achieved a revenue of 7.772 billion yuan, a year-on-year increase of 38.21%. Excluding the comparable caliber of film and television business, the revenue of furniture business of the company increased by 45% year-on-year in 21 years. The company's 21q1 / Q2 / Q3 / Q4 achieved revenue of RMB 1.250/18.57/19.36/2.729 billion, with a year-on-year increase of 72.5% / 48.4% / 31.1% / 25.7%. 21q4 continued to achieve rapid growth under the high base of the previous year. The rapid expansion of the company's revenue scale is mainly driven by the strong performance of its own brand retail business. In 2021, the company's own brand market share increased steadily. On the net profit side, in 2021, the company realized a net profit attributable to the parent company of 559 million yuan, an increase of 78.29% year-on-year. Excluding the comparable caliber of film and television business, the net profit attributable to the parent company of the company increased by 71% year-on-year in 21 years. The company's 21q1 / Q2 / Q3 / Q4 net profit attributable to the parent company was RMB 0.84/1.33/1.56/185 million, with a year-on-year increase of 255.5% / 37.5% / 13.4% / 38.8%. The growth rate of 21q4 performance increased month on month.
The independent brand Wuxi Online Offline Communication Information Technology Co.Ltd(300959) has made concerted efforts, and the 21-year thousand store expansion plan has been successfully completed. In terms of channels, the company's main furniture business is divided into three parts: independent brand retail business, independent brand engineering business and OEM OEM business outside China. In 2021, about 65% of the company's revenue came from its own brand retail business. Offline distribution stores and online channels achieved revenue of 3.96 billion yuan and 1.1 billion yuan respectively, with a year-on-year increase of 64.0% and 63.3%, and offline and online accounted for 78% and 22%. The company successfully completed the thousand store expansion plan in the 21st year. By the end of the 21st year, the total number of independent brand stores of the company was 4495, with a net increase of 852 over the beginning of the year (1109 newly opened and 257 closed), including 1062, 2837 and 596 stores of Ximian series, Xlinmen Furniture Co.Ltd(603008) , M & D (including xiatu) respectively, with a net increase of 262, 497 and 93 over the beginning of the year. The offline retail business achieved high growth driven by the increase of extension stores and the delivery volume of single stores, The growth rate leads the industry. Tiktok tiktok continues to maintain the first class sales, the layout of the voice and the broadcast of the master, and now has more than 10 live rooms on the flick. In 2021, the company's bulk business achieved a total revenue of 2.6 billion yuan, a year-on-year increase of 17.4%, of which the revenue of overseas OEM OEM OEM business was 1.16 billion yuan, a year-on-year increase of 46.4%, the revenue of China OEM OEM business was about 960 million yuan, a year-on-year decrease of about 3%, and the revenue of independent brand engineering business was 470 million yuan, a year-on-year increase of 9%. In 2021, the gross profit margins of the company's distribution stores, bulk businesses and online channels were 44.7%, 9.2% and 39.4% respectively, with a year-on-year decrease of 3.4, 4.2 and 13.7pct.
The volume and price of main products increased simultaneously, focusing on the contraction of wooden furniture business of soft furniture. In terms of products, in 2021, the company's mattresses, soft beds and supporting products, sofas and wooden furniture achieved revenue of 3.96 billion yuan, 2.42 billion yuan, 1.05 billion yuan and 220 million yuan respectively, with a year-on-year increase of 38.7%, 70.0%, 46.9% and - 28.1%, accounting for 51.0%, 31.1%, 13.6% and 2.8% of revenue. The diversified product matrix layout achieved good results, soft beds and sofas achieved rapid growth, and the decline of wooden furniture revenue was the strategic adjustment of the company, focusing on the software home business. In 2021, the company's sales of mattresses, beds and sofas increased by 27.0%, 19.9% and 26.7% year-on-year. The sales volume of software products and the average sales unit price increased in the average year of 21. It is expected that as the company continues to promote the systematic sales of product sets and expand bedroom products such as soft beds, bedside tables and pillows, the customer unit price will be further increased.
Under the comparable standard of 21 years, the gross profit margin increased year-on-year, and the inventory turnover accelerated. In terms of profitability, the company's gross profit margin fell by 1.8pct to 32.0% year-on-year in 2021. It is judged that the company implemented the new accounting standards and adjusted the freight from sales expenses to operating costs. Under the comparable caliber, the company's gross profit margin increased by 1.5pct year-on-year. In terms of expense ratio, the company's sales / management / R & D / financial expense ratio was 15.4% / 4.0% / 2.4% / 0.7% in 21 years, with a year-on-year increase of - 0.8 / - 0.8 / + 0.1 / - 0.6pct. During this period, the expense ratio fell by 2.0pct to 22.4%. In 2021, the company deepened brand reform and upgrading, laid out national brand strategy, and strengthened the rejuvenation of the brand through variety shows such as official publicity of young performer Yang Yang Yang and sponsorship of running men, and the sales expense ratio increased by 2.7pct under comparable standards. The net investment income / revenue of the company increased by 0.65 PCT in 21 years, which is the confirmation of the equity transfer income from the disposal of film and television business. Under the comprehensive impact, the net interest rate of the company increased by 1.5 PCT to 7.8% year-on-year in 21 years. In terms of inventory, by the end of the year, the company's inventory was 1.1 billion yuan / + 38.0%, and the inventory turnover days were 65 days, a year-on-year decrease of 29 days. In terms of cash flow, the net cash flow from operating activities of the company in 2021 was 700 million yuan, a year-on-year decrease of 4.9%.
Investment suggestion: in 2021, the company implemented the integrated two wing strategy of "mattress as the main body and bedroom and living room as the two wings". Its business focused more on the field of software home, and its own brand retail business line achieved excellent performance offline. It is expected that the company will expand 8001000 stores offline in 2022 and continue to enrich the layout of diversified product matrix. The market concentration of China's mattress industry is still at a low level, and the company continues to be optimistic about the development potential of its own brand retail business. We estimate that the operating revenue of the company from 2022 to 2024 will be 9.64 billion yuan, 11.94 billion yuan and 14.69 billion yuan respectively, with a year-on-year increase of 24.0% / 23.9% / 23.1%, and the net profit attributable to the parent company will be 720 million yuan, 930 million yuan and 1.18 billion yuan respectively, with a year-on-year increase of 29.3% / 28.8% / 26.9%. The PE of the company in 22 years will be about 14.5 times, maintaining the "buy-b" proposal.
Risk warning: raw material price fluctuation risk; The opening of offline stores was not as expected; Competition in the home furnishing industry has intensified.
