\u3000\u3 Shengda Resources Co.Ltd(000603) 008 Xlinmen Furniture Co.Ltd(603008) )
Event: on April 19, Xlinmen Furniture Co.Ltd(603008) issued the 2021 annual report. In 2021, the company achieved an operating 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%; The net profit attributable to the parent company after deduction was 496 million yuan, a year-on-year increase of 58.19%. In 2021q4, the company realized an operating revenue of 2.729 billion yuan, 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 net profit attributable to the parent company after deduction was 171 million yuan, a year-on-year increase of 17.39%.
The retail channels of independent brands have expanded rapidly, and the growth of soft beds and sofas has been beautiful. From the perspective of business, 1) in 21 years, the retail business of independent brands achieved a revenue of 5.174 billion yuan, a year-on-year increase of 65%, and the brand marketing and channel investment have achieved remarkable results. 2) The revenue of independent brand engineering business was 470 million yuan, with a year-on-year increase of 9%. The slowdown was mainly due to the strategic adjustment of the company and the decline in the revenue of wooden furniture in hotel furniture. 3) The processing business realized a revenue of 2.128 billion yuan, a year-on-year increase of 19%. Among them, the strong demand for overseas OEM business has become the main driver of growth, with a revenue of 1.165 billion yuan, a year-on-year increase of 46%. In terms of categories, the company continued to focus on its core mattress business and achieved the second sales growth curve – the rapid improvement of the scale of soft beds and sofas. Mattresses, soft beds and supporting and sofa achieved revenue of RMB 3.961/24.201054 billion respectively, with a year-on-year increase of 38.74% / 70.02% / 46.88%.
Offline channels maintain a fast-paced expansion of stores, and the construction of “1 + n” Omni channel network continues to be promoted. The company gradually constructs a “1 + n” Omni channel sales network with offline exclusive stores and online platforms as the core and supplemented by distribution stores and supermarkets’ home appliance stores. In the past 21 years, the revenue of offline business of independent brands reached 4.076 billion yuan, with a year-on-year increase of 65%, of which the revenue of Xlinmen Furniture Co.Ltd(603008) brand increased by 77% to 3.427 billion yuan, and the revenue of M & D and xiatu brands increased by 23% to 649 million yuan. By the end of the 21st century, the number of Xlinmen Furniture Co.Ltd(603008) , Ximian and M & D (including xiatu) stores had increased by 759 / 262 / 93 to 3899 / 1062 / 596 respectively, and the thousand store expansion plan had been completed. 21 tiktok business realized 1 billion 98 million yuan in revenue, up 63% over the same period last year. Xlinmen Furniture Co.Ltd(603008) brand maintained deep cooperation with Tmall, Jingdong and Suning.Com Co.Ltd(002024) , and maintained the main platform mattress category sales. The company started to master the channel self seeding and broadcasts, and now has built more than 10 live rooms on the flick.
The profitability improved steadily. The brand marketing increased investment. The company’s comprehensive gross profit margin was 32.00% in 21 years, a year-on-year decrease of 1.76pct, mainly because the company adjusted the relevant freight from sales expenses to operating cost accounting according to the new revenue standard. After excluding the impact of freight adjustment in the same period of 20 years, the gross profit margin increased by 1.67pct. During the 21 years, the company’s expense rate was 22.43%, with a year-on-year decrease of 2.01pct. The sales / management / R & D / financial expense rate was 15.36% / 4.04% / 2.36% / 0.67% respectively, with a year-on-year increase of -0.77 / – 0.77 / + 0.14 / – 0.61pct respectively. After excluding the impact of freight adjustment in the same period of 20 years, the sales expense rate increased by 2.66pct year-on-year, mainly due to the company’s increased investment in advertising, marketing and brand construction. Under the comprehensive influence, the net interest rate of the company in 21 years was 7.79%, with a year-on-year increase of 1.55pct.
Investment suggestion: as a leading mattress enterprise in China, Xlinmen Furniture Co.Ltd(603008) brand influence continues to take the lead. At the same time, the company continues to enrich the diversified product matrix and the online and offline channels expand rapidly. It is expected to fully enjoy the dividend of increasing industry penetration and market share. We estimate that the operating revenue of 60 Sichuan Injet Electric Co.Ltd(300820) 222024 will be RMB 9.446 billion, RMB 11.701 billion and RMB 14.265 billion, with a year-on-year increase of 21.54%, 23.87% and 21.91%; The net profit attributable to the parent company was 718 million yuan, 932 million yuan and 1169 million yuan, with a year-on-year increase of 28.50%, 29.84% and 25.35%. The corresponding PE was 14.9x, 11.4x and 9.1x, and the investment rating of Buy-A was given.
Risk tip: the industry competition intensifies the risk, the channel expansion is less than expected, and the price of raw materials fluctuates sharply.
