\u3000\u3 Shengda Resources Co.Ltd(000603) 008 Xlinmen Furniture Co.Ltd(603008) )
Performance summary: the company released the first quarter report of 2022, and achieved revenue of 1.4 billion yuan (+ 12.4%) in the first quarter of 2022; The net profit attributable to the parent company was 53.921 million yuan (- 36.2%); The net profit deducted from non parent company was 49.16 million yuan (+ 12.9%). The growth rate of net profit attributable to the parent company was negative, mainly because 21q1 company confirmed the disposal of shengxihuashi equity transfer income, resulting in high non recurring income. The growth rate of net profit deducted was basically consistent with that of income. Under the external environment of repeated epidemic in China, the company’s income and performance showed strong toughness.
The gross profit margin remained stable and the cost control ability was good. In the first quarter, the company’s overall gross profit margin was 34.3%, a year-on-year decrease of 0.2pp, mainly due to the impact of changes in income standards and the transfer of transportation expenses to operating costs. In terms of expense rate, the overall expense rate of the company in the first quarter was 30.5% (+ 0.6pp). Among them, the sales expense ratio of the company is 19.9% (- 1.5pp); The management fee rate is 6.4% (+ 1.4pp); The R & D expense rate is 2.8% (+ 0.2pp); The financial expense rate is 1.3% (+ 0.4pp). Overall, the net interest rate of the company was 3.8%, a year-on-year decrease of 3PP, deducting the non net interest rate of 3.5%, which was basically flat year-on-year. The net cash flow from the operating activities of 2022q1 company was – 550 million yuan, which was mainly due to the increase of purchase payment and salary payment in the current period. Contract liabilities were 250 million yuan (+ 24.3%), and orders on hand maintained a benign growth.
Independent brands grew steadily and online business performed well. In terms of products, the mattress revenue of the company in the first quarter was 750 million yuan (+ 21%); The income of soft beds and supporting products was 430 million yuan (+ 16%); Sofa income was 190 million yuan (- 2%). The income of each main product has made steady progress. At the same time, the company actively grasped the industry opportunities, increased the investment in brand and channel, gradually improved the brand strength, and the retail business of China’s independent brands developed rapidly. In the first quarter, the company’s independent brand retail business revenue reached 920 million yuan (+ 20%), of which the offline / online revenue was 690 / 220 million yuan, with a year-on-year increase of 16% / 31%. Under the condition of offline marketing in some regions affected by the epidemic in China, the company maintained the pace of online marketing and maintained a high growth in online business. In addition, the revenue of independent brand engineering business was 40 million yuan, a year-on-year decrease of 42%, mainly due to the adjustment of the company’s business strategy; The income from processing business was 450 million yuan, a year-on-year increase of 8%.
The channel maintains the expansion rhythm, and the 1 + N channel structure is gradually improved. In terms of offline channels, by the end of the first quarter, the total number of physical stores of the company had reached 4589, an increase of 94 over the beginning of the year. Among them, Xlinmen Furniture Co.Ltd(603008) other series (including Jingmian, fashman, Keshan, etc.) / Ximian series / M & D (including xiatu) reached 2906 / 1085 / 598 respectively, with a net opening of 69 / 23 / 2 compared with the beginning of the year, and the pace of store expansion continued. In terms of online channels, Xlinmen Furniture Co.Ltd(603008) brand has formed in-depth cooperation with tmall, jd.com, Suning.Com Co.Ltd(002024) and other core e-commerce platforms; At the same time, new channels such as supermarkets, home appliances and home decoration are laid out in advance to simplify the transaction scenario, explore new increments, and gradually build a “1 + n” Omni channel sales network with offline specialty stores and online platforms as the core and supplemented by distribution stores and supermarkets’ home appliance stores.
Profit forecast and investment suggestions. It is estimated that the EPS from 2022 to 2024 will be 1.86 yuan, 2.38 yuan and 2.99 yuan respectively, and the corresponding PE will be 14, 11 and 9 times respectively. Maintain the “buy” rating.
Risk tip: the risk of sharp fluctuations in raw material prices, the risk that the store expansion progress is less than expected, and the risk of intensified industry competition.
