\u3000\u3 Shengda Resources Co.Ltd(000603) 008 Xlinmen Furniture Co.Ltd(603008) )
Core view
Event: the company released its annual report for 2021, and achieved an operating revenue of 7.772 billion yuan during the reporting period, 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%, and the net profit attributable to the parent company after deducting non-profit was 496 million yuan, a year-on-year increase of + 58.19%.
Comments:
Private brands continued to increase, and the annual performance was close to the upper limit of the early notice. In terms of business segmentation, the company's private brand retail business / private brand engineering business / agent processing business contributed an operating revenue of RMB 5.174470/2.128 billion respectively, with a year-on-year increase of + 65% / + 9% / + 19% respectively. Among them, the private brand retail business continued to increase, driving the annual net profit close to the upper limit of the previous forecast. From the perspective of single quarter, the company's Q4 single quarter revenue was 2.729 billion yuan, a year-on-year increase of + 25.74%, the net profit attributable to the parent in a single quarter was 185 million yuan, a year-on-year increase of + 38.83%, and the net profit attributable to the parent after deduction of Non Profits was 171 million yuan, a year-on-year increase of + 17.39%.
Excluding the impact of the new standards, the gross profit margin increased steadily and the profitability continued to improve. The company's annual gross profit margin is affected by the new accounting standards that include freight into operating costs, with a year-on-year increase of -1.76 pcpts to 32%. If the freight influencing factors are excluded, the company's annual gross profit margin is + 1.49 pcpts year-on-year. The company's informatization and operation management capabilities have been continuously optimized, driving the annual expense rate from -2.01pcpts to 22.43% year-on-year, including sales expense rate from -0.77pcpts to 15.36%, management and R & D expense rate from -0.63pcpts to 6.4%, financial expense rate from -0.61pcpts to 0.67%, which has a comprehensive impact on the company's annual net profit margin from + 1.62pcpts to 7.79% year-on-year, and the profitability has been steadily improved.
Store development was further accelerated, and inventory turnover was significantly accelerated. By the end of the reporting period, the company had 4495 stores, of which Xlinmen Furniture Co.Ltd(603008) / Ximian / M & D (including xiatu) stores had a net increase of 497 / 262 / 93 to 2837 / 1062 / 596 respectively. Driven by the acceleration of the pace of opening stores, the annual sales revenue of Xlinmen Furniture Co.Ltd(603008) (including Ximian) / M & D (including xiatu) increased by + 63.32% / + 22.73% year-on-year to RMB 4.875649 billion respectively. Benefiting from the rapid expansion of channels and the optimization of operation capacity, the company's accounts receivable turnover days were -15.55 days to 45.19 days compared with the same period last year, and the inventory turnover days were -29.49 days to 64.72 days compared with the same period last year.
Investment suggestion: the independent brand has excellent performance, and equity incentive shows development confidence. In the early stage, the company launched the equity incentive plan and set higher performance assessment objectives to demonstrate the management's confidence in future growth. At the same time, the company's channel sinking strength is leading in the industry, and it is expected to develop rapidly with the help of "furniture to the countryside" Dongfeng. We maintain the company's performance forecast for 2022 / 2023 and add the performance forecast for 2024. It is estimated that the company's net profit attributable to the parent company from 2022 to 2024 will be RMB 720 / 93 / 1.2 billion respectively, corresponding to the current market value PE of 15 / 12 / 9x respectively, maintaining the "buy" rating.
Risk tip: the cost of raw materials fluctuates sharply, the real estate market fluctuates, and the channel development is less than expected.
