\u3000\u3 China Vanke Co.Ltd(000002) 293 Luolai Lifestyle Technology Co.Ltd(002293) )
Performance summary: the company released the annual report of 2021 and the first quarterly report of 2022. In 2021, the company achieved a revenue of 5.76 billion yuan, a year-on-year increase of 17.3%; The net profit attributable to the parent company after deduction was 680 million, an increase of 22.1%; Among them, Q4 revenue and net profit increased by 6.5% / - 0.2% respectively. In 2022, Q1 achieved a revenue of 1.29 billion, a year-on-year decrease of 2.5%, and realized a net profit of 160 million yuan, a year-on-year decrease of 12.8%. Due to the high proportion of the company's revenue in East China, the performance temporarily fell under the impact of the epidemic.
The profitability is stable and the operating capacity continues to improve. The gross profit margin in 2021 was 45%, with a year-on-year increase of 1.8pp. In terms of expense rate, the total rate of the company in 21 years reached 28%, with a year-on-year increase of 1.6pp, which is mainly caused by the expansion of channels and the reduction of bank deposit interest. Specifically, in 2021, the sales expense rate / financial expense rate / management expense rate / R & D expense rate were 19.6% (+ 0.5pp) / - 0.7% (+ 0.6pp) / 6.9% (+ 0.4pp) / 2.2% (+ 0.1pp) respectively, and the expense control was relatively stable. The net interest rate of the company in the 21st year was 12.4%, with a year-on-year increase of 0.5pp, and the profitability remained stable. The inventory turnover days were 139.6 days, a decrease of 13.3 days compared with 20 years, and the accounts receivable decreased by 6.6 days to 31.3 days. The operating capacity continued to improve.
The main business has increased rapidly and all channels have made concerted efforts. In 2021, the company's Standard Suite / quilt core / pillow core / summer products / other accessories / furniture contributed revenue of 1.9 billion yuan (+ 17.5%) / 1.83 billion yuan (+ 17.4%) / 280 million yuan (+ 5.1%) / 180 million yuan (+ 22.9%) / 410 million yuan (+ 0.9%) / 1.11 billion yuan (+ 21.1%), accounting for 33% / 31.7% / 4.9% / 3.1% / 7.1% / 19.3% respectively. The main business performance achieved rapid growth. In terms of regions, domestic sales / export sales (mainly in the United States) reached 4.58 billion yuan (+ 15.3%) / 1.13 billion yuan (+ 20.4%, Lexington's revenue was 1.1 billion yuan); The tiktok / Kwai Ying / affiliate contributed 1 billion 610 million yuan (+13.6%) /3.7 billion yuan (+11%) /20.3 billion yuan (+23%) respectively. The growth of online revenue mainly benefited from the platform such as the company's voice and fast hands, innovative marketing methods, and the rapid growth of franchised revenue was mainly due to the rapid expansion of the franchised stores.
The franchise stores expanded rapidly and the construction of production capacity was promoted in an orderly manner. By the end of 2021, the company had a total of 2481 stores, including 261 Direct stores / 2220 franchise stores respectively, with a net opening of 4 stores / 241 in 21 years. Franchise stores expanded rapidly. In terms of factory automation, the company increased its production capacity by 14.16 million, and the total utilization rate of intelligent production reached 17.85% year-on-year.
Profit forecast and investment suggestions. It is estimated that the EPS from 2022 to 2024 will be 0.99 yuan, 1.12 yuan and 1.25 yuan respectively, and the corresponding PE will be 14 times, 12 times and 11 times respectively. Considering that the company, as the leader of home textile, is expected to maintain steady growth under the advantages of multiple categories and channels, with reference to the valuation of comparable companies, the company is given a valuation of 18 times in 22 years, with a target price of 17.8 yuan, and a "buy" rating for the first time.
Risk warning: the risk of terminal sales falling short of expectations, the risk of store expansion falling short of expectations, the risk of overseas business growth falling short of expectations, and the risk of exchange rate fluctuations.
