\u3000\u3 China Vanke Co.Ltd(000002) 293 Luolai Lifestyle Technology Co.Ltd(002293) )
The high-end brand strategy has achieved initial results. In 2021, the company achieved double improvement in revenue and performance, and high dividends were paid back to investors. According to the company’s annual report in 2021, the company’s operating revenue was 5.76 billion yuan, yoy + 17.30%; The net profit attributable to the parent company was 713million yuan, yoy+21.92%, and the basic earnings per share was 0.86 yuan, yoy+21.67%; The gross profit margin was 45%, with a year-on-year increase of 1.82pcts. The company plans to distribute a cash dividend of 6.00 yuan (including tax) for every 10 shares to all shareholders based on the total share capital base on the equity registration date when the distribution plan is implemented in the future, superimposed with 21q3 dividends, with an annual dividend of more than 1 billion yuan.
Release the potential of online channels, expand offline franchises, and improve the efficiency of direct sales. The company accelerated the Wuxi Online Offline Communication Information Technology Co.Ltd(300959) combination and continuously expanded product channels. Offline large-scale tiktok, online active layout of Kwai, fast hands and other short video platform. According to channel observation, in 2021, the company realized online revenue of 1.612 billion yuan, yoy + 13.59%; Offline revenue reached 4.148 billion yuan, yoy + 18.80%. In the offline channel, according to the observation of store formats, the operating revenue of franchise stores reached 2.029 billion yuan, with a gross profit margin of 45.31%. In 2021, the number of new / net stores was 408 / 241, with an average annual store efficiency of 914000 / store, yoy + 9.45%; The revenue of Direct stores is 371 million yuan, the gross profit margin is 66.43%, the store efficiency is 1420800 yuan / store, yoy + 9.18%, and the number of new / net stores in 2021 is 44 / 4.
The cost level remained stable, and the gross profit margin of core products increased steadily. In 2021, the gross profit margin of the company was 45.00%, yoy + 1.82 PCTs, of which the gross profit margin of main product standard kit / quilt core / furniture was 48.71% / 48.86% / 37.18%, yoy + 0.36/4.37/2.12 PCTs. From the cost side, in 2021, the company’s sales expense rate / management expense rate / R & D expense rate / financial expense rate were 19.61% / 9.06% / 2.17% / – 0.68% respectively, yoy + 0.52/0.48/0.10/0.56pcts. During the period, the increase of advertising and other publicity expenses and labor cost investment led to the increase of expense rate.
Brands, products, production and channels continue to make efforts and are optimistic about the growth of the company. ① Brand side: the company has determined the strategy of internationalization and rejuvenation, and the brand tone is expected to continue to improve in the future; ② Product side: the company uses Wuxi Online Offline Communication Information Technology Co.Ltd(300959) the consumer data to gain insight into the demand, and carries out the accurate development of new products in two seasons a year in combination with the analysis of the retail data of the industry, so as to promote the internationalization and rejuvenation of the brand; ③ Production side: the factory implements the operation and management mode of combining lean production with TOC constraint theory, focuses on the implementation path of standardized, streamlined, automated, digital, networked and intelligent intelligent manufacturing, pursues the maximization of effective output, and achieves the organizational and operational objectives of reducing cost, increasing efficiency, improving quality and shortening delivery time. Tiktok Kwai: the company actively layout new channels such as online jitter, fast hand, and so on. The direct line stores continue to improve the efficiency of the line, and the demand for the US region is strong to promote the growth of performance. Therefore, we believe that in the future, the digital design of product end will promote the improvement of brand tone, the digital cost reduction and efficiency increase of production end, and the value of channel end will continue to be excavated. The resonance of several factors will continue to promote the growth of the company.
Investment suggestion: the company takes root in Jiangsu, Zhejiang and Shanghai. Under the influence of the epidemic in 22q1, the revenue fell by 2.5% year-on-year and the net profit attributable to the parent fell by 12.8%. However, in the long run, the company is expected to benefit from the improvement of brand tone, the accuracy of product design, digital production and channel value mining. We expect that the net profit attributable to the parent company from 2022 to 2024 will be RMB 848 / 995 / 1122 million respectively, and the corresponding PE will be 13X / 11x / 10x respectively. It will be covered for the first time and given a “recommended” rating.
Risk tip: weak demand for furniture in overseas areas; The RMB exchange rate changes too much; The epidemic has repeatedly affected production and sales.
