\u3000\u3 China Vanke Co.Ltd(000002) 293 Luolai Lifestyle Technology Co.Ltd(002293) )
On April 19, 2022, the company released the annual report of 2021 and the quarterly report of Q1 in 2022. In 2021, the company realized a revenue of 5.76 billion yuan, a year-on-year increase of 17.30%, and the net profit attributable to the parent company was 713 million yuan, a year-on-year increase of 21.92%. In 2022q1, the company realized a revenue of 1.286 billion yuan, a year-on-year decrease of 2.49%, and the net profit attributable to the parent company was 159 million yuan, a year-on-year decrease of 12.81%. The company’s main home textile industry is stable and maintains the buy rating.
Key points supporting rating
The rapid expansion of the main home textile industry has driven the growth of income and the rapid growth of home business. In terms of the main business of home textile, in 2021, the company actively carried out brand building and channel expansion, enhanced brand competitiveness by enhancing product quality and promoting IP cooperation, and the revenue of the main business of home textile (textile business) increased by 17.47% to 3.725 billion yuan. Among them, offline channel companies strengthened store expansion, and actively penetrated into the third and fourth tier cities while consolidating the advantages of the first and second tier markets, In 2021, there will be 245 stores (4 / 241 direct sales / franchises respectively) to 2481. On the basis of online cooperation with tmall, jd.com, vipshop and other large platforms, we actively laid out short video platforms and achieved good results, with an online increase of 13.59% to 1.612 billion yuan. In terms of furniture business, the real estate market recovered in the cycle after the US epidemic in 2021, and the relevant consumer demand increased. The Lexington brand business of the company in the United States grew better, with revenue increasing by 21.07% to 1.113 billion yuan and net profit increasing by 59.46% to 104 million yuan. Affected by the local epidemic, the company’s performance fluctuated in 2022q1, with a revenue of 1.286 billion yuan, a year-on-year decrease of 2.49%, and a profit of 159 million yuan, a year-on-year decrease of 12.81%. After the epidemic, the company’s revenue is expected to stabilize.
In 2021, against the background of rising raw material costs, the company’s profitability was significantly improved and its competitive advantage was continuously enhanced. In 2021, under the environment of rising raw material costs, the company strengthened brand building, enhanced brand advantages, optimized organizational structure, continuously reduced costs and increased efficiency, boosted the gross profit margin by 1.82pct to 45.00%, and the net profit margin by 0.47pct to 12.38%, of which the net profit margin of home textile business increased by 0.08pct to 13.11%, and the net profit margin of home business increased by 2.24pct to 9.30%.
Deeply cultivate medium and high-end home textiles, continue to strengthen R & D, improve product strength, multi brand strategic layout, and high growth can be expected in the future. The company continues to focus on the research and development of bed products, determines the young and functional research and development direction, and the launch of high-end new products is expected to strengthen its influence. Launch products with different positioning for consumers of different grades and needs. In the future, the improvement of multi brand matrix is expected to further promote performance growth.
Valuation
Under the current share capital, the earnings per share from 2022 to 2024 are expected to be 0.93 yuan, 1.08 yuan and 1.2 yuan respectively; The P / E ratio was 14 times, 12 times and 11 times respectively, maintaining the buy rating.
Main risks of rating
The channel expansion was less than expected, the recovery of consumption after the epidemic was less than expected, and the sales of new products were less than expected.
