\u3000\u3 Shengda Resources Co.Ltd(000603) 816 Jason Furniture (Hangzhou) Co.Ltd(603816) )
Main points:
Event: the company released the 21st Annual Report and the first quarterly report of 22 years, and the performance continued to increase. In 2021, the company achieved a revenue of 18.342 billion yuan, a year-on-year increase of + 44.8%, and a net profit attributable to the parent company of 1.664 billion yuan, a year-on-year increase of + 96.9%; Among them, 21q4 achieved a revenue of RMB 5.12 billion, a year-on-year increase of + 24.2%, a net profit attributable to the parent company of RMB 430 million, a year-on-year increase of + 359.6%, and a year-on-year increase of + 34.4% after reducing the impact of 20-year asset impairment loss (RMB 484 million). In 22q1, the company achieved a revenue of 4.54 billion yuan, a year-on-year increase of + 20.1%, and a net profit attributable to the parent company of 443 million yuan, a year-on-year increase of + 15.1%.
Continuous verification of category integration capability and continuous fulfillment of capability boundary expansion. Domestic sales: the product side promotes the big home strategy, the growth of advantageous categories such as leisure sofa is steady, and the high potential categories are gradually in large quantities; The channel side adhered to the 1 + N + X strategy, accelerated the layout of potential energy stores and integrated large stores, and improved the customer unit value. The annual domestic sales revenue was 10.7 billion yuan, a year-on-year increase of + 40%, Q4 price increase and landing + raw material cost decline, thickening the profit. In terms of export sales: the annual export sales were 6.92 billion yuan, a year-on-year increase of + 48.7%. In order to cope with the impact of tariffs, anti-dumping and sea freight, the company accelerated the production capacity layout of overseas high-end products and planned to start the construction of Mexico production base in 22h1. The first phase is planned to be put into operation in the middle of 23 years, so as to further improve the global competitiveness of products in the medium and long term. In the short term, the current contradiction between supply and demand of China and the United States has slowed down. Since mid February, the freight rates in the East / West of the United States have decreased, superimposed on the early price increase and landing, and the export business is expected to realize the profit elasticity.
Digital reform has formed the ability to control powerful categories and channels. In the past 21 years, the company has deepened the reform of its management team, focusing on the value chain of foreign trade marketing, the construction of medium and Taiwan product division, and the construction of retail digital “cloud + Management + platform”. The corresponding annual sales expenses / management expenses / R & D expenses are + 48% / + 10% + 46% year-on-year respectively. The reform results are expected to show gradually since 22 years. In addition, the company released the shareholding increase plan for senior executives and dealers in March to deeply bind core dealers and demonstrate long-term development confidence. The leading position of the company’s software is stable, the big home strategy is implemented in all categories and multiple channels, and the reform results are gradually realized to the performance; The epidemic situation has accelerated the clearing of the industry, the pattern has been continuously optimized, and the market share of the company is expected to increase steadily. We expect the net profit attributable to the parent company in 22-24 years to be RMB 2.0732572 billion and RMB 2.956 billion respectively, with a year-on-year increase of + 24.6% / 24% / 14.9% respectively. Corresponding to 17.7x PE in 2022, maintain the “buy” rating.
Risk tips
The decline of real estate boom, the rise of raw material costs, the deterioration of overseas trade environment and the risk of repeated epidemic.
