\u3000\u3 Shengda Resources Co.Ltd(000603) 833 Oppein Home Group Inc(603833) )
Event: the company issued the annual report of 2021. During the reporting period, the company achieved a revenue of 20.442 billion yuan, a year-on-year increase of 38.68%; The net profit attributable to the parent company was 2.666 billion yuan, a year-on-year increase of 29.23%; The basic earnings per share is 4.4 yuan / share. Among them, the company achieved a single quarter revenue of 6.04 billion yuan in the fourth quarter, a year-on-year increase of 20.6%; The net profit attributable to the parent company was 552 million yuan, a year-on-year decrease of 9.84%.
The price of raw materials rose sharply, driving the decline of gross profit margin. During the reporting period, the company’s comprehensive gross profit margin was 31.62%, a year-on-year decrease of 3.39%. Among them, the single quarter gross profit margin in the fourth quarter of 2021 was 28.98%, down 4.04% year-on-year and 4.3% month on month. The company’s gross profit margin declined, mainly because: during the reporting period, the company’s raw material prices rose sharply, and the cost of main business materials increased by 52.41% year-on-year, higher than the growth rate of revenue.
The effect of expense control was prominent, and the net interest rate decreased year-on-year. During the reporting period, the company’s expenses improved significantly, with the expense rate of 16.19% and a year-on-year decrease of 2.62%. Among them, the sales expense rate was 6.78%, a year-on-year decrease of 1%; The rate of administrative expenses was 5.54%, a year-on-year decrease of 0.99%; The financial expense ratio was – 0.56%, with a year-on-year decrease of 0.33%; The R & D expense ratio was 4.44%, a year-on-year decrease of 0.3%. In terms of net profit margin, limited by the decline of gross profit margin, the net profit margin of the company during the reporting period was 13.03%, a year-on-year decrease of 0.96%. Among them, the net profit margin of 21q4 was 9.12%, a year-on-year decrease of 3.1% and a month on month decrease of 8.63%.
The basic cabinet panel developed steadily, and the wardrobe, wooden door and bathroom increased rapidly. The three systems of marketing, function and manufacturing of the company develop in coordination, and all-round advantages support the rapid growth of the performance of various categories. During the reporting period, the company’s wardrobe and supporting / cabinet / wooden door / bathroom and other products achieved revenue of 10.172/75.29/12.36/9.89/219 billion yuan respectively, with a year-on-year increase of 49.53% / 24.22% / 60.36% / 33.72% / 64.37% respectively.
The retail channel has been continuously improved, and the packaged channel has grown rapidly. The distribution channel is still an important basic market of the company. During the reporting period, the revenue was 15.68 billion yuan, a year-on-year increase of 40.2%, accounting for 77.84% of the main business income. In terms of the number of stores, at the end of 2021, the company’s overall number of stores reached 7475, with a year-on-year increase of 363, including 2459 comprehensive stores (+ 52), 2201 independent stores (+ 77), 989 stores (+ 61), 805 stores (+ 217, which is expected to drive the rapid growth of the performance of sanitary products in 2022), and 1021 stores (- 44). In terms of decoration channels, the company promoted the dual brand entry strategy, continued to upgrade in the form of customized products as the core + resource integration + Shuanglong alliance, and fully enabled the decoration large home dealers to achieve bright growth. During the reporting period, the company’s decoration order receiving performance increased by more than 90% year-on-year.
Investment suggestion: the company is a leader in the home furnishing industry. It has achieved rapid growth in multiple categories, continued to deepen the channel layout, made steady progress in the big home strategy, and is optimistic about the future growth of the company. It is expected that the company will achieve eps5 in 2022 / 23 / 24 19 / 6.25 / 7.47 yuan / share, corresponding to 23x / 19x / 16x PE, maintaining the “recommended” rating.
