\u3000\u3 China Vanke Co.Ltd(000002) 293 Luolai Lifestyle Technology Co.Ltd(002293) )
Core view
Event: the company released the annual report of 2021 and the first quarterly report of 2022, and achieved an annual operating revenue of 5.76 billion yuan, a year-on-year increase of + 17.3%; The net profit attributable to the parent company was 713 million yuan, a year-on-year increase of + 21.92%; It is proposed to issue a cash dividend of 6 yuan for every 10 shares. 22q1 company achieved an operating revenue of 1.286 billion yuan, a year-on-year increase of – 2.49%; The net profit attributable to the parent company was 159 million yuan, a year-on-year increase of – 12.81%.
Comments:
Brand Upgrading & operation efficiency improvement, and the contribution of various channels has performed well in the past 21 years. According to the channels of home textile business, the company achieved revenue of RMB 16.1/3.7/2.03/650 million through online / direct / franchise / other channels, with a year-on-year increase of 13.6% / 10.9% / 22.8% / 8% respectively. The sales contribution of all channels was good. By the end of 2021, the company had 2481 stores, of which the number of direct / franchise stores had increased by 4 / 241 to 261 / 2220 respectively. Tiktok is actively distributing new channels, Luolai Lifestyle Technology Co.Ltd(002293) is ranked first in the double eleven full network GMV, and the first year is home in the home textile category. The efficiency of store operation was improved. The same store of Direct stores for more than 12 months increased by 14.3%, and the expansion of franchise stores was accelerated. Since March, the retail end of Shanghai contour city has been significantly impacted by the epidemic, the logistics has been blocked, and the online delivery has been affected. The sales and performance of 22q1 company have declined slightly. It is expected that the impact of Q2 epidemic will continue and the performance will be under pressure in the short term.
The profitability was improved slightly and the operation quality was improved. In 2021, the company’s gross profit margin was + 1.82pct to 45%. Luolai brand strengthened the differentiated positioning of “super soft bed products”, promoted the high-end upgrading of products through R & D and innovation, and enhanced the ability of product premium. The ratio of sales / management / R & D / financial expenses increased by 0.5/0.4/0.1/0.6pct to 19.1% / 6.9% / 2.2% / – 0.7% respectively year-on-year, mainly due to the company’s increased brand publicity, channel expansion and product R & D. Under the combined influence, the net interest rate is + 0.4pct to 12.5%. Inventory turnover days – 13 to 140 days, accounts receivable turnover days – 7 to 31 days, and operating capacity improved.
Household business has achieved rapid growth, with a high dividend ratio and shared development dividends. The household business increased from + 21.6% to 1.1 billion yuan year-on-year, and the gross profit margin increased from + 2.2pct to 37.2% year-on-year. Lexington’s business grew rapidly in 2021, benefiting from the recovery of the epidemic and the growth of the North American real estate market. It is expected to continue to expand outsourcing capacity to meet market demand in 2022. The company announced the profit distribution plan, which plans to pay a cash dividend of 6 yuan for every 10 shares, with a cumulative dividend ratio of more than 100% throughout the year, and share the performance growth dividend with shareholders.
Investment suggestion: the leading position of the company’s home textile is stable, the main brand actively promotes the differentiation strategy of “super soft bedding products”, the product upgrading and brand upward results are shown, and the profitability and market share are expected to be further improved. Considering the continuous impact of the epidemic, we slightly lowered the company’s profit forecast. It is estimated that the net profit attributable to the parent company in 22 / 23 / 24 will be 790 / 890 / 1.04 billion yuan (the original forecast value was 820 / 940 million yuan in 22 / 23), corresponding to 14 / 12 / 11 times of the current market value PE respectively, maintaining the “buy” rating.
Risk tip: the epidemic affects consumption, overseas demand slows down, and the prices of raw materials and shipping rise.
