\u3000\u3 Shengda Resources Co.Ltd(000603) 008 Xlinmen Furniture Co.Ltd(603008) )
Event: the company announced in the first quarterly report that in 2022q1, the operating revenue was 1.405 billion yuan, a year-on-year increase of 12.35%, and the net profit attributable to the parent company was 54 million yuan, a year-on-year decrease of 36.18%; Net profit deducted from non profits increased by 12.85% year-on-year.
Comments:
Strong brand advantages of bed furniture retail in the first quarter. 1) From the perspective of 2022q1 business, the revenue of the company’s independent brand retail business, independent brand engineering business and agent processing business reached 918 million / 39 million / 448 million respectively, with a year-on-year change of + 20% / – 42% / + 8% respectively Wuxi Online Offline Communication Information Technology Co.Ltd(300959) all channels made concerted efforts. In terms of independent brand retail business, the operating revenue of offline channel 2022q1 was 694 million, with a year-on-year change of + 16%, and that of online channel 2022q1 was 223 million, with a year-on-year change of + 31%. The company adheres to the leading strategy of brand products, firmly adheres to the “deep and good sleep”, takes the sleep industry as the core, moves forward from single brand to multi brand, and the main brand is positioned at the high and middle end. 2) In terms of products, the steady growth trend of bedding business continues. In 2022q1, the operating revenue of sofa, mattress, wooden furniture, soft bed and its supporting products was 193 million yuan / 746 million yuan / 12 million yuan / 427 million yuan respectively, with a year-on-year change of – 2% / + 21% / – 75% / + 16%. 3) In terms of channel expansion, as of the end of the first quarter, the company had 3991 offline Xlinmen Furniture Co.Ltd(603008) special stores, including 1085 Ximian series and 598 MD stores (including xiatu). The total number of stores increased by 94 compared with 22 at the beginning of the year. In 2022, the company plans to open more than 1000 new stores in the traditional building materials market channel, and increase the proportion of stores opened by Ximian and Keshan; We will continue to lay out new business channels that need to be updated, and establish a live broadcasting team to help franchisees establish a live broadcasting system.
The gross profit margin is basically stable, and the growth rate of deducting non net profit is still stable. In 2022q1, the gross profit margin of the company decreased slightly by 0.2pct to 34.26% on a year-on-year basis. In terms of expenses, the rates of sales, management + R & D and financial expenses in Q1 changed by -1.45pct, + 1.56pct and + 0.47pct respectively. The increase of management expenses was mainly due to the increase of wages, training and amortization expenses in this quarter; The changes in financial expenses are mainly due to the increase in the scale of the current quarter and the increase in loan interest expenses. In Q1 single quarter, the company’s net profit attributable to the parent company and deducting non net profit changed by – 36.18% and + 12.85% respectively year-on-year, and the net interest rate decreased by 2.92pct to 3.84% year-on-year; The year-on-year decline in net profit attributable to the parent company was mainly due to the sharp decline in non recurring profit and loss in 21q1 year-on-year, and the performance of non deduction profit was still stable. By the end of the first quarter, the balance related to the company’s contract liabilities had increased by 24.3% year-on-year, and the reserve of orders on hand had formed a certain support for future performance. In the next 22 years, the company will gradually establish intelligent production based on lean and intelligent manufacturing, build a benchmark production line and further improve operation efficiency.
Profit forecast: as the leading enterprise in China’s mattress industry, the company has leading brand and channel advantages. In recent years, it has vigorously developed its own brand retail business, and its market share has increased rapidly. Extend sub brands to cover more customer groups, and expand sofa categories to enhance new driving forces for development. The launch of equity incentive shows development confidence. It is estimated that the net profit attributable to the parent company from 2022 to 2024 will be 698 million yuan, 877 million yuan and 1084 million yuan respectively, with a year-on-year increase of 24.8%, 25.7% and 23.6% respectively. At present (2022 / 4 / 22) the share price corresponds to 15x PE in 2022.
Real estate outbreak risk: large risk range, real estate outbreak risk.
