\u3000\u3 Shengda Resources Co.Ltd(000603) 008 Xlinmen Furniture Co.Ltd(603008) )
According to the annual report released by the company, the annual revenue in the 21st century was 7.772 billion yuan, a year-on-year increase of + 38.2%, of which Q1-Q4 achieved revenue of 12.50/18.57/19.36/2.729 billion yuan in a single quarter, a year-on-year increase of + 72.51% / + 48.40% / + 31.06% / + 25.74%; In 21 years, the net profit attributable to the parent company was 559 million yuan, a year-on-year increase of + 78.3%, of which Q1-Q4 achieved 0.84/1.33/1.56/185 billion yuan in a single quarter, a year-on-year increase of + 255.55% / + 37.53% / + 13.42% / + 38.83%. Excluding the film and television business in the same period, the revenue in 21 years was + 45% year-on-year, and the net profit attributable to the parent company was + 71% year-on-year.
Retail sales of independent brands continued to increase by + 65% year-on-year, of which offline sales of Xlinmen Furniture Co.Ltd(603008) brand performed well by + 77% year-on-year. In the past 21 years, the company’s independent brand retail business achieved 5.174 billion yuan, a year-on-year increase of + 65%, of which the online business achieved 1.098 billion yuan, a year-on-year increase of + 63%, the offline business achieved 4.076 billion yuan, a year-on-year increase of + 65%, the offline sales of Xlinmen Furniture Co.Ltd(603008) brands increased by + 77%, and the proportion of independent brands continued to increase. The processing business achieved 2.128 billion yuan, a year-on-year increase of + 19%, with steady development.
The synergy between categories is gradually reflected, and the revenue of soft bed / sofa is + 70% / + 47% year-on-year respectively. In terms of products, the company’s mattress revenue in 21 years was 3.961 billion yuan, a year-on-year increase of + 39%, of which the mattress revenue of independent brands was + 63% year-on-year. While the core categories maintained rapid development, the drainage effect for soft beds and sofas was significant. In 21 years, the soft beds / sofas achieved revenue of 2.42/1.054 billion yuan respectively, a year-on-year increase of + 70% / + 47% respectively. The synergy between guest sleeping products gradually appeared, and the set sales is expected to promote the steady increase of guest unit price.
There will be a net increase of 852 stores in 21 years, and the pace of high-speed store expansion will be maintained in 22 years. By the end of the 21st century, the company had a total of about 4500 stores, Xlinmen Furniture Co.Ltd(603008) (including Ximian) / M & D (including xiatu) stores were 3899 / 596 respectively, with a net increase of 759 / 93 respectively, including 2837 middle and high-end series stores such as Jingmian and fasiman, with a net increase of 497, and 1062 ximianmen stores focusing on sinking the market, with a net increase of 262. The company consolidates its advantages in traditional channels, continues to promote the plan of opening more than 1000 new stores in the past 22 years, and the distribution network continues to be encrypted. Different series of stores in the same store are expected to form a joint force to cover a wider customer base. At the same time, it uses the advantageous categories of mattresses to drain soft beds and sofas, laying the foundation for Xlinmen Furniture Co.Ltd(603008) from a single mattress brand to a software brand integrating customers and bedrooms.
The profitability has rebounded significantly, build an independent brand and increase the investment in marketing expenses. According to the new revenue standard, after the freight is adjusted to the cost, the gross profit margin of the company in 21 years is 32%, which is 1.49pct higher than that in the same period of 20 years under comparable standards, and the net profit attributable to the parent company in 21 years is 7.19%, with a year-on-year increase of + 1.09pct. The ratio of sales / management / Finance / R & D expenses in 21 years was 15.36% / 4.04% / 0.67% / 2.36% respectively, with a year-on-year increase of + 2.66 / – 0.77 / – 0.61 / + 0.14pct respectively. The company has strengthened the brand’s influence on the new generation of consumers through sponsoring the variety of B, combining with the small red book, the jitter, the KOL tiktok and many other marketing methods.
The penetration rate of mattress category is 60%, the industry Cr5 is less than 20%, and the Xlinmen Furniture Co.Ltd(603008) market accounts for about 4%, which still has great room for improvement. In recent years, the penetration rate of mattress categories in the Chinese market is about 60%, the Xlinmen Furniture Co.Ltd(603008) market accounts for about 4%, and the Cr5 of the mattress industry is less than 20%. Compared with the Cr5 of the American mattress industry, which is close to 70%, the industry concentration has more room to improve. We believe that at present, leading enterprises have entered the stage of giving full play to their scale advantages and accelerating the extrusion of small and medium-sized brands. We are optimistic that Xlinmen Furniture Co.Ltd(603008) products will continue to enhance their strength, and the category layout will expand from bedroom space to living room space; While accelerating the layout of channels, strengthen the fine management of stores, effectively improve the terminal sales performance, and continuously invest in the brand side to improve the brand value.
Profit forecast and rating: as the leader in the mattress industry, the company has continuously expanded Wuxi Online Offline Communication Information Technology Co.Ltd(300959) channels and gradually established the influence of independent brands. With the continuous optimization of the industry competition pattern, under the background of the rise of domestic products, the leading position of the company will continue to be consolidated by relying on strong product and channel strength. It is estimated that the net profit attributable to the parent company in 22-24 years will be 720 / 930 / 1.22 billion yuan respectively, with a year-on-year increase of + 28.5% / + 30.1% / + 30.5% respectively, The corresponding PE is 15x / 11x / 9x, maintaining the “buy” rating.
Risk warning: the expansion of terminal stores is less than expected; The impact of the epidemic continues; Intensified industry competition, etc.
