\u3000\u3 Shengda Resources Co.Ltd(000603) 833 Oppein Home Group Inc(603833) )
Main points:
Event: the company released the annual report of 2021. In 2021, the company achieved a revenue of 20.442 billion yuan, a year-on-year increase of + 38.68%, and a net profit attributable to the parent company of 2.666 billion yuan, a year-on-year increase of + 29.23%; Among them, 21q4 achieved a revenue of 6.04 billion yuan, a year-on-year increase of + 20.61%; The net profit attributable to the parent company was 552 million yuan, a year-on-year increase of – 9.8%. The pressure on 21q4 profit was mainly caused by factors such as the decline of gross profit margin of bulk business and the rise of raw material prices.
Product side: the second curve radiates strong growth vitality, and the whole house customization promotes the high growth of multiple categories. The company firmly promotes the set sales of multi category integration, and takes kitchen, clothing and sanitary ware as the core to drive the sales growth of other multi categories. In 2021, the revenue of the company’s cabinet business was 7.529 billion yuan (+ 24.2%), and the growth of non cabinet business was rapid. In recent five years, the CAGR was as high as 36.6%, accounting for 61.7% in total; Among them, the revenue of wardrobe and supporting facilities exceeded 10 billion yuan (10.172 billion yuan, + 76.2%), accounting for 49.8%; The revenue of wooden door / bathroom was 1.236989 billion yuan respectively, with a year-on-year increase of + 60.3% / 33.8%.
Channel side: the retail channel continues to grow at a high rate, and the whole house is broken and new. In 2021, the company’s revenue from traditional dealers / direct sales / bulk channels was 15.68 billion yuan, 5.87 billion yuan and 3.673 billion yuan respectively, with a year-on-year increase of 40.2% / 47.2% / 36.9% respectively; In terms of profitability, the gross profit margins of distribution / direct sales / bulk commodities were 30.3% and 64.1% / 30.8% respectively. The retail channels continued to increase rapidly and the bulk commodities grew steadily; In terms of stores, in 2021, the number of stores was 7475, with 363 new stores, including 2459 / 2201 / 805 / 1021 / 989 cabinets / wardrobe / bathroom / wooden door / opelli stores and 52 / 77 / 217 / – 44 / 61 new stores respectively. 2021 is the year of “breaking the situation and creating a new one” for the company’s packaged home, with a year-on-year increase of more than 90%, and launched the “Star House” to enter the packaged track with dual brands. In addition, the company actively explored the new model of big home, and proposed to set up a joint venture in core cities jointly funded by the group and dealers in early April to set up a three-dimensional drainage big home exhibition center and grasp the initiative of traffic entrance.
The current valuation is a quarter of the last three years, with a strong margin of safety. Under the background of bottom valuation + steady growth of real estate, as the leader of customized home, the company has multiple advantages and barriers such as brand, channel and management. The implementation of the packaged large home model is smooth and the future performance is uncertain. It is estimated that the net profit attributable to the parent company in 22-24 years is RMB 3.061/35.95/4.335 billion respectively, with a year-on-year increase of + 14.8% / 17.5% and 20.6% respectively. The corresponding PE is 24x / 21x / 17x. It is covered for the first time and given a “buy” rating.
Risk tips
Downside risks of real estate, sharp fluctuations in raw materials, intensified industry competition and repeated epidemic risks.
