\u3000\u3 Shengda Resources Co.Ltd(000603) 385 Huida Sanitary Ware Co.Ltd(603385) )
Event: the company released the first quarter report of 2022. During the reporting period, the company achieved a revenue of 680 million yuan, a year-on-year decrease of 4.2%; The net profit attributable to the parent company lost 1.3796 million yuan, a year-on-year decrease of 103.43%.
The suspension of the epidemic caused an increase in fixed costs and led to a decline in gross profit margin. During the reporting period, the company’s comprehensive gross profit margin was 22.05%, down 5.54% year-on-year and 2.63% month on month. The company’s gross profit margin fell sharply, mainly because of the large-scale epidemic in Hebei and the shutdown of the company’s Tangshan base, resulting in an increase in fixed costs. It is expected that with the improvement of the epidemic situation in the future, the gross profit margin of the company will be gradually repaired.
The expense rate increased and the net interest rate decreased significantly year-on-year. The company’s expense rate during the period was 26%, with a year-on-year increase of 2.5%. Among them, the sales expense ratio was 10.28%, with a year-on-year increase of 0.58%; The management expense ratio was 9.48%, with a year-on-year increase of 0.5%; The financial expense ratio was 1.24%, with a year-on-year increase of 1.31%; The R & D expense rate was 5%, with a year-on-year increase of 0.12%. In terms of net interest rate, limited by the sharp decline of gross profit rate and the increase of expense rate, the net interest rate of the company during the reporting period was – 1.19%, a year-on-year decrease of 7.19% and a month on month decrease of 1.22%.
Multi channel enables Chinese sales, while foreign sales go against the trend. In terms of sales in China, the company has comprehensively arranged retail, assembly and engineering channels: in terms of retail channels, the company has accelerated the construction of exclusive stores, optimized the dealer system and continuously strengthened the retail capacity; In terms of decoration channels, the company focuses on the head decoration enterprises such as Dianshi home decoration, and gives priority to starting the home decoration business in core cities; In terms of project channels, the company implements the “1 + 5” project base model and binds with country garden and other high-quality real estate developers; In terms of foreign sales, the company focuses on major customers in key markets such as the United States and Canada, and actively develops new customers such as Peru. By the end of 2021, the company has obtained product certification from 17 countries or regions and 5 factories.
Investment suggestion: the company has excellent R & D strength, high product power, increasingly perfect channel layout and coordinated development of domestic and foreign sales. It is expected to continue to grow in the future. It is expected that the company will achieve eps1 in 2022 / 23 / 24 05 / 1.26/1.48 yuan / share, the corresponding PE is 7x / 6x / 5x, maintaining the “recommended” rating.
Risk tip: the risk that the economic growth is less than expected; The risk of increased market competition.
