\u3000\u3 Shengda Resources Co.Ltd(000603) 816 Jason Furniture (Hangzhou) Co.Ltd(603816) )
Events
On April 21, the company released the 21st Annual Report and the first quarterly report of 22 years. In the 21st year, the company's revenue / net profit attributable to the parent company / net profit deducted (excluding the impact of goodwill impairment in 20 years) increased by + 44.8% / + 25.2% / + 32.7% year-on-year to 18.34/16.6/1.43 billion yuan respectively. The dividend plan is to increase 3 shares for every 10 shares and pay out 13.2 yuan (including tax). The company's 22q1 revenue / net profit attributable to the parent company / net profit deducted from non profits increased by + 20.1% / + 15.1% / + 20.3% year-on-year to RMB 4.54/4.4/380 billion respectively. On the whole, 22q1's operation was relatively excellent, and the deducted Non Profits slightly exceeded expectations.
Brief comment
The growth of domestic sales is resilient, and the growth of export sales is higher than expected: in 21 years, the company's domestic sales / export sales increased by + 40% / + 48.7% to 10.71/6.92 billion yuan respectively year-on-year, of which 21q4 domestic sales / export sales increased by + 20.4% / + 24.2% to 3.09/1.89 billion yuan respectively. In terms of domestic sales, it is expected that it will mainly rely on the optimization of store conditions and the improvement of product matrix to further boost the income of single stores, of which the growth of soft beds and mattresses by more than 23% is expected to be an important driving force in terms of categories. The domestic sales of 22q1 company is affected by the epidemic, but the revenue is expected to increase by 15%, of which the high potential category mattresses and customized mattresses continue to grow rapidly, which are expected to be + 26% / + 20% respectively. In terms of export, 22q1 relies on the export of gujia brand mattresses, and the revenue is expected to grow by more than 28%.
The pressure on raw materials is relieved, and the elasticity of export profits in 22 years is expected: the gross profit margin of the company in 21 years is - 1.1pct to 28.9% year-on-year. In addition to the expected impact of 0.4pct of ocean freight collected and paid on behalf of others, it is mainly due to the rise in the price of raw materials. In terms of expense rate, the company's financial expense rate in 21 years is relatively stable except -0.6pct. The gross profit margin of 21q1 company increased from + 0.7pct to 29.9% year-on-year, mainly due to the easing of the pressure on the cost of raw materials in Q1 and the price increase of the company's products before, and the gross profit margin of domestic and foreign sales is expected to increase. As of April 15, the average price of soft foam polyether this year has decreased by nearly 30% compared with the average price of last year, and the gross profit margin of export is expected to show flexibility. In terms of expense rate, the sales / Management (including R & D) / financial expense rate was + 0.5pct / - 0.1pct / + 0.4pct respectively year-on-year.
The advantages of full category + multi brand operation are prominent, and the dealer system has increased its confidence: in terms of domestic sales, the company has shown its advantages from multiple dimensions: 1) customized business forward-looking layout for many years and accumulated sufficient experience; 2) In order to adapt to the sales trend of category integration, the organizational structure of the company has been adjusted accordingly, the middle stage of products has been established, and the store status has been optimized simultaneously. It is estimated that the proportion of Q1 large stores + comprehensive stores has exceeded 38%; 3) The company prospectively arranges regional retail centers and pilot warehouses to provide services, deeply empowers dealers, and helps the company sink channels and integrate categories. The improvement of the leading superposition brand system of category integration will significantly promote the continuous growth of the three high potential categories of customization + function + mattress. The growth path of the company's domestic sales is clear. The completion of the second phase of the dealer's shareholding increase plan in the near future further demonstrates confidence.
Investment advice
We expect that the EPS from 2022 to 2024 will be 3.36 yuan, 4.11 yuan and 5.01 yuan respectively, and the corresponding PE of the current stock price will be 17x / 14x / 12x respectively, maintaining the "buy" rating.
Risk tips
Category integration progress is lower than expected; The price of raw materials has increased significantly; The efficiency of overseas factories is lower than expected.
