\u3000\u3 Shengda Resources Co.Ltd(000603) 008 Xlinmen Furniture Co.Ltd(603008) )
The performance grew steadily under the high base and maintained the “buy” rating
The company achieved a revenue of 1.405 billion yuan in 2022q1, a year-on-year increase of + 12.35%, and achieved steady growth under a high base (2021q1 + 72.4%). The net profit attributable to the parent company was 54 million yuan, with a year-on-year increase of – 36.18% (mainly due to the investment income obtained by stripping the film and television business in 2021q1, the change in the net investment equity obtained by investing in Ruixi company, the impairment loss of contract assets in 2022q1, excluding the above effects, the net profit attributable to the parent company in 2022q1 was + 45.2% year-on-year), and the net profit not attributable to the parent company was 49 million yuan, with a year-on-year decrease of + 12.85%. We maintain the profit forecast from 2022 to 2024. It is estimated that the company’s net profit attributable to the parent company from 2022 to 2024 will be 717 / 925 / 1206 million yuan, corresponding to EPS of 1.85 / 2.39 / 3.11 yuan, and the current share price corresponding to PE of 14.3 / 11.1 / 8.5 times, maintaining the “buy” rating.
Under the epidemic, retail sales of independent brands continued to increase, and channel development continued to advance
Brand: retail is advancing rapidly, and the engineering strategy is adjusted and contracted. The total retail business of 2022q1 brand business is 918 million yuan (+ 20%), of which 694 million yuan is offline (+ 16%) / 223 million yuan is online (+ 31%). The engineering business of 39 million yuan (- 42%) is a strategic adjustment, and the agent processing business of 448 million (+ 8%) is to develop new businesses such as Europe / Japan and South Korea. Products: mattresses / soft beds and supporting products / sofas / wooden furniture were 7.46/4.27/1.93/0.12 billion yuan respectively, with a year-on-year increase of + 21% / + 16% / – 2% / – 75%. In 2022, we will continue to promote the systematic sales of guest sleeping sets, accelerate the development of mattress business and help improve the customer unit value. Channel: the development of stores continued to advance, and the net number of Xlinmen Furniture Co.Ltd(603008) / Ximian / MD (including xiatu) stores increased from + 69 / + 23 / + 2 to 2906 / 1085 / 598 respectively compared with the end of 2021.
Good cost control, steady improvement in profitability, and rapid growth in expected performance of forward-looking indicators
Cost reduction and efficiency increase have gradually achieved results. In 2022q1, under the rising pressure of raw materials, the gross profit margin increased steadily (comparable caliber) to + 3PCT to 34.3% year-on-year. The overall rate during the period was relatively stable, with a slight year-on-year increase of 0.4pct to 27.7%. Specifically, the management rate was + 1.4pct to 6.4% year-on-year, which was affected by the increase of wages, training and amortization expenses. The sales rate decreased slightly by 1.4pct to 19.9%. Under the combined effect, the net interest rate was – 3.4pct to 4.3% year-on-year. The net cash flow was – 551 million yuan, mainly due to the payment of year-end bonus and the increase of purchase price. Affected by the logistics slowdown caused by the epidemic, the year-on-year inventory turnover was +21.35 days to 113.35 days, and the year-on-year accounts receivable turnover was +24.32 days to 75.71 days. Advance receipts + contract liabilities in 2022q1 were 249 million yuan (201 million yuan in 2021q1), a year-on-year increase of + 23.88%.
Risk tip: store construction is not as expected, the price of raw materials rises sharply, and the terminal demand drops sharply.
