\u3000\u3 Shengda Resources Co.Ltd(000603) 816 Jason Furniture (Hangzhou) Co.Ltd(603816) )
Core view:
Event: the company released the annual report of 2021 and the first quarterly report of 2022. In 2021, the company achieved a revenue of 18.342 billion yuan, a year-on-year increase of 44.81%; The net profit attributable to the parent company was 1.664 billion yuan, a year-on-year increase of 96.87%; The basic earnings per share is 2.65 yuan / share. Among them, the company achieved a revenue of 5.117 billion yuan in a single quarter in the fourth quarter, a year-on-year increase of 24.16%; The net profit attributable to the parent company was 427 million yuan, turning losses into profits year-on-year. In 2022q1, the company achieved a revenue of 4.54 billion yuan, a year-on-year increase of 20.05%; The net profit attributable to the parent company was 443 million yuan, a year-on-year increase of 15.11%; The basic earnings per share is 0.7 yuan / share.
The rise in the price of raw materials led to the decline of the company’s gross profit margin. In 2021, the company’s comprehensive gross profit margin was 28.87%, a year-on-year decrease of 1.1%. Among them, the gross profit margin of 21q4 was 28.89%, a year-on-year increase of 9.35% and a month on month increase of 0.02%. 22q1 single quarter gross profit margin was 29.85%, with a year-on-year increase of 0.65% and a month on month increase of 0.96%. The gross profit margin declined in 2021, mainly due to the rising price of raw materials and the pressure on the company’s gross profit margin.
The expense rate fluctuated slightly, and the net interest rate in 21 years increased year-on-year. In 2021, the company’s period expense rate was 18.57%, with a year-on-year decrease of 0.9%. Among them, the sales / management / Finance / R & D expense rate was 14.74% / 1.79% / 0.39% / 1.65%, with a year-on-year change of 0.29% / – 0.56% / – 0.65% / 0.02% respectively. In 2022q1, the company’s period expense rate was 18.33%, with a year-on-year increase of 0.86%, of which the sales / management / Finance / R & D expense rate was 14.66% / 1.73% / 0.28% / 1.65%, with a year-on-year change of 0.48% / – 0.22% / 0.44% / 0.16% respectively. In terms of net interest rate, in 2021, the company’s net interest rate was 9.27%, with a year-on-year increase of 2.43%. Among them, the company’s net interest rate in 21q4 single quarter was 8.63%, with a year-on-year increase of 13.27% and a month on month decrease of 0.52%; 22q1 single quarter net profit margin of the company was 10.09%, a year-on-year decrease of 0.07% and a month on month increase of 1.46%.
With the rapid expansion of the whole category, big home is ready to go. The company continued to improve its product layout and extended to bed and customized products based on sofa. In 2021, the company’s sofa, bed, integrated supporting and customized products achieved revenue of RMB 9.267 billion, 3.338 billion, 3.14 billion and 660 million respectively, with a year-on-year increase of 44.51%, 42.75%, 41.13% and 44.8% respectively. In 2022, the company released 49800 whole house package, realizing the integration of seven self-made categories, further deepening the big home strategy and broad growth space in the future.
Double wheel drive for domestic and foreign sales, achieving brilliant growth in performance. In 2021, the company’s domestic sales revenue reached 10.712 billion yuan, a year-on-year increase of 40.05%; Export sales achieved a revenue of 6.918 billion yuan, a year-on-year increase of 48.68%. In terms of domestic sales, the company continued to promote the 1 + N + X channel strategy, with obvious advantages in channel layout. By the end of 2021, the number of physical stores of the company was 6456, a decrease of 235 compared with last year, including 6304 distribution stores (4463 private brands and 1841 other brands) and 152 direct sales stores. In terms of export sales, the company implements fine management, continuously improves and optimizes the structure of various product lines, strengthens the experience and cognition of high-end customers, maintains the differentiation of middle-end innovation, and expands the coverage of low-end customers.
Investment suggestion: the company is a leading enterprise of soft furniture, with complete category layout, optimized channels and continuously strengthened competitiveness. It is optimistic about the company’s future strategic development of large home furnishings. It is expected that the company will achieve Eps3 in 2022 / 23 / 24 31 / 4.09 / 5.00 yuan / share, the corresponding PE is 18x / 14x / 12x, maintaining the “recommended” rating.
Risk tip: the risk that the economic growth is less than expected; The risk of increased market competition.
