\u3000\u3 Shengda Resources Co.Ltd(000603) 008 Xlinmen Furniture Co.Ltd(603008) )
The performance exceeded our expectations. The resonance of brand + product + channel helped the continuous growth and maintained the "buy" rating
In 2021, the company's revenue was 7.772 billion yuan (+ 38.2%), the net profit attributable to the parent company was 559 million yuan (+ 78.3%), the revenue in 2021q4 was 2.729 billion yuan (+ 25.8%), and the net profit attributable to the parent company was 185 million yuan (+ 39.1%). In 2021, the sales profit increased double, and the performance exceeded expectations. Considering the repeated epidemic, the profit forecast is lowered and the profit forecast for 2024 is added. It is estimated that the net profit attributable to the parent company in 20222024 will be 717 / 925 / 1206 million yuan respectively (722 / 953 million yuan in 20222023), the corresponding EPS will be 1.85/2.39/3.11 yuan, and the current share price will be 14.9/11.5/8.9 times that of PE. We are optimistic about the long-term development of the company under the support of product + channel + brand and maintain the "buy" rating.
Overall growth + brand development in 2021
Brand: the business of self owned brand grows rapidly and the retail performance is eye-catching Xlinmen Furniture Co.Ltd(603008) / M & D (including xiatu) revenue was RMB 4.875649 billion respectively, a year-on-year increase of + 63.3% / + 22.7%; The retail / Engineering revenue of demolition business was 5.2 billion yuan / 476 million yuan respectively, with a year-on-year increase of + 65% / + 9%. Products: the systematization effect of guest bedroom covers gradually appears, and soft beds and sofas have become the new growth point of the company. The revenue of mattresses / soft beds and supporting products / sofas / hotel furniture was + 38.74% / + 70.02% / + 46.88% / - 28% year-on-year respectively (due to strategic adjustment), and the revenue contribution was 51% / 31% / 14% / 3% respectively. The company's product structure continued to be optimized; Channel: in 2021, the company completed the thousand store expansion plan (a net increase of 852 to 4495 stores), and Xlinmen Furniture Co.Ltd(603008) / Ximian / M & D (including xiatu) stores increased by 497 / 262 / 93 to 2837 / 1062 / 596 respectively. Dealer / bulk business / online revenue +64.0%/+17.4%/+63.3% year-on-year.
During this period, the rate was well controlled, the profitability was steadily improved, and the operating efficiency continued to improve
Affected by the implementation of the new standards, the company's gross profit margin decreased slightly by 1.75pct to 32.0% in 2021, and the gross profit margin of comparable caliber was nearly + 1.5pct year-on-year. During the period, the expenses were well controlled, ranging from -2.0pct to 22.4% year-on-year. The specific sales rate / management rate / financial rate were 15.4% / 4.0% / 0.7% respectively, and -0.8pct / - 0.8pct / - 0.6pct year-on-year. Under the comprehensive influence, the net interest rate was + 1.5pct to 7.8% year-on-year (excluding film and television investment income, the net interest rate was + 1.3pct to 7.6% year-on-year). In 2021, the company accelerated cash collection / capital turnover: the days of accounts receivable / inventory turnover decreased by 15.55 days / 29.49 days respectively year-on-year to 45.19 days / 64.72 days. The financial leverage was stable, the asset liability ratio increased only slightly by 1.2pct to 59.3%, and the total asset turnover rate increased steadily. Under the comprehensive effect, roe increased from + 7.7pct to 17.9% year-on-year.
Risk tip: the construction of stores is less than expected, the price of raw materials rises sharply and the terminal demand drops sharply.
