\u3000\u3 Shengda Resources Co.Ltd(000603) 816 Jason Furniture (Hangzhou) Co.Ltd(603816) )
The revenue and profit increased beautifully in 21 years. In 21 years, the revenue reached 18.342 billion yuan, a year-on-year increase of + 44.81%, and the revenue in a single quarter was 37.82/42.34/52.09/51.17 billion yuan, a year-on-year increase of + 65% / + 65% / + 41% / + 24%. In 21 years, the company realized a net profit attributable to the parent company of RMB 1.66 billion, a year-on-year increase of + 97%, and a net profit attributable to the parent company of RMB 1.43 billion after deduction of non profits, a year-on-year increase of + 141.55%. After restoring the impact of the provision for impairment of goodwill of RMB 480 million in 20 years, the net profit attributable to the parent company of the company in 21 years was + 25.2% and a year-on-year increase of + 32.7%. By the end of the 21st century, the company had accumulated distributable profit of 3.775 billion yuan, and planned to increase 3 shares per 10 shares with capital reserve and distribute cash dividend of 13.20 yuan (including tax). Under the influence of factors such as the outbreak of the epidemic in China, the growth of 22q1 is stable and the leading style is shown. 22q1 company achieved a revenue of 4.54 billion yuan, a year-on-year increase of + 20%, a net profit attributable to the parent company of 440 million yuan, a year-on-year increase of + 15.1%, and a net profit attributable to the parent company of 380 million yuan after deduction, a year-on-year increase of + 20.3%.
Promote the integration of guest dining and sleeping space for domestic sales, normalize the creation of products, and optimize the product structure for export. Thanks to the continuous improvement of product power, the company’s major products have achieved beautiful growth in the past 21 years, with the growth rate of more than 40%, and the sofa revenue was 9.27 billion yuan, a year-on-year increase of + 44.5%; The income of soft beds and mattresses was 3.34 billion yuan, a year-on-year increase of + 42.8%; The revenue of integrated products was 3.14 billion yuan, a year-on-year increase of + 41.1%; The revenue from customized furniture was 660 million yuan, a year-on-year increase of + 44.8%. For the domestic market, the integrated products of guest dining and sleeping space are built normally, and each business division focuses on building large single products; In terms of export, the proportion of functional products in the North American market has increased significantly. Fixed products have launched product series suitable for different business models, and the product structure has been continuously optimized. At the same time, the company continues to promote disassembly research and cost research in combination with customer needs, and further improve product competitiveness by optimizing costs. The company introduced new functions and processes in the high-end market to enhance product value, maintained design differentiation in the middle end, and provided cost-effective products at the low end through cost control. The product strength supported the company to cover a wide range of high, medium and low-end customers.
We will unswervingly adhere to the 1 + N + X strategy, optimize the channel organization structure, and use digital means to improve channel efficiency. In the past 21 years, the total number of terminal stores of the company was about 6500, and the scale of retail network was leading in the industry
Profit forecast and Valuation: the company is the leader of China’s software home furnishings. Domestic sales gradually strengthen the synergy of regional retail centers, and make efforts to move towards large home furnishings in all categories and through multiple channels. With the gradual release of overseas production capacity, export product categories are more diversified, opening the growth space of export market. It is optimistic about the long-term development of the company and the accelerated improvement of leading concentration. It is estimated that the net profit attributable to the parent company in 22 / 23 / 24 will be 2.07/25.5/3.12 billion yuan respectively, Year on year + 24.6% / + 22.8% / + 22.4%, corresponding PE is 18x / 14x / 12x respectively, maintaining the “buy” rating.
Risk warning: the epidemic control is not as expected; Industry competition intensifies; Rising prices of raw materials; The delivery of real estate is not as expected. By the end of the 21st century, the company had a total of 541 large stores, including 108 integrated large stores. The layout of large stores was accelerated to consolidate the advantages of category professional stores. The X channel continued to explore and create more experience scenes reaching end consumers. The company has worked intensively in channel management, and the channel organization structure has changed from category responsibility system to brand responsibility system, maintaining high yield in store design and iterative R & D. In terms of operation, digital means can achieve accurate drainage and reduce the cost of getting customers; Digital tools are widely used in terminals, such as dealer warehousing informatization, training treasure, design circle and other tools to empower terminal store managers, shopping guides and designers to improve management efficiency. In terms of the construction of warehouse distribution service, the goal of testing and opening warehouse will be completed in 2021, and the regional warehouse covers the business of dealers in Zhejiang, laying a foundation for replicating the warehouse distribution service mode in the future.
Capacity continued to be globalized, and manufacturing and supply chain efficiency improved steadily. In terms of production capacity, in 21 years, the company laid out a Southwest production base in Jiangjin, Chongqing, and an additional 1 million sets of software home and supporting industrial projects in Hangzhou. In terms of overseas production capacity, the company laid out a self built base in Mexico, which is expected to better meet the needs of the North American market. In terms of production and manufacturing, the labor cost of a single set of domestic trade manufacturing has decreased, and the labor of an export single set has decreased compared with the budget. Through lean improvement and automation, human efficiency has been promoted. In terms of supply chain, promote the construction of orders, planning, manufacturing, warehousing and logistics, organizational capacity and information technology, realize the synchronous improvement of delivery and operation efficiency, reduce the cost of supply chain, improve the delivery index and efficiency index year-on-year, and reduce the labor cost of manufacturing a single set year-on-year.
Under the background of rising raw material prices, the profitability is stable and the cost control is effective. Due to the adjustment of accounting standards, the freight is adjusted from sales expenses to operating costs. The following data are comparable after adjustment: the gross profit margin of the company’s main furniture industry in 21 years is 24.83%, with a year-on-year increase of -0.84pct. In terms of products, the gross profit margin of sofa / soft bed and mattress / integrated products / customized furniture in 21 years is 29.5% / 33.2% / 24.8% / 32.4%, with a year-on-year increase of -3.0 / – 2.4 / + 0.6 / – 3.3pct. In terms of regions, the gross profit margin of domestic / export sales in 21 years is 34.5% / 18.1% respectively, Year on year -1.2 / + 1.0pct. In 21 years, the company’s sales / management / R & D / financial expense ratio was 14.7% / 1.8% / 1.6% / 0.4% respectively, with a year-on-year increase of + 0.3pct / – 0.6pct/flat / – 0.6pct respectively. 21. The net interest rate attributable to the parent company for the whole year was 9.1%, which was -1.4pct compared with the same period of 20 years after excluding the impact of goodwill. The gross profit margin of 22q1 company was 29.9%, year-on-year + 0.7pct, and the net profit attributable to the parent company was 9.8%, year-on-year -0.4pct. 22q1 sales / management / R & D / financial expense rates were 14.7% / 1.7% / 1.7% / 0.3% respectively, with a year-on-year increase of + 0.5pct / – 0.2pct / + 0.2pct / + 0.4pct respectively. Against the background of rising raw material prices, the company is committed to cost reduction and efficiency increase, effective cost control, continuous exploration towards lean and automated production, and lay the foundation for further improving management efficiency in the future through supply chain reform.
