\u3000\u3 Shengda Resources Co.Ltd(000603) 833 Oppein Home Group Inc(603833) )
Key investment points
Event: the company issued the 2021 annual report. In 2021, the company achieved a revenue of 20.442 billion yuan, an increase of 38.68%, a net profit attributable to the parent company of 2.666 billion yuan, an increase of 29.23%, and a deduction of non net profit of 2.510 billion yuan, an increase of 29.72%; In a single quarter, the company's 21q4 achieved a revenue of 6.040 billion yuan, an increase of 20.60%, a net profit attributable to the parent of 552 million yuan, a year-on-year increase of - 9.84%, and a deduction of non net profit of 497 million yuan, a year-on-year increase of - 9.38%. The increase in raw material costs affects short-term profits, focusing on cost control and efficiency improvement. On the profit side, the net interest rate attributable to the parent company in 2021 was 13.04% (-0.95pct.), The gross profit margin is 31.62% (- 3.39 PCT.); 21q4 net interest rate attributable to parent company is 9.14% (-3.09pct.), The gross profit margin is 28.98% (-4.04pct.). In terms of splitting channels, the fluctuation of Q4 gross profit level is mainly due to the decline of gross profit margin of distribution channels (Q4 decreased by 5.8pct year-on-year) Caused by. On the expense side, the rates of sales, management, R & D and financial expenses in 2021 were 6.78%, 5.54%, 4.44% and - 0.56% respectively, with a year-on-year increase of -1.00pct- 0.98pct.、- 0.30pct.、- 0.32pct.。
Channel side: the steady growth of retail highlights the leading toughness, and the bulk gross profit stabilizes. Retail: in 2021, the company's retail channel achieved a revenue of 16.472 billion yuan, an increase of 39% and 20.6% in the fourth quarter, mainly benefiting from the high-speed and large-scale volume of wardrobe and packaging channels. In terms of splitting, 1) the direct channel achieved a revenue of 587 million yuan, an increase of 47% and 34% in the fourth quarter, with an annual gross profit margin of 64.13% (- 2.23 PCT.). 2) The distribution channel revenue was 15.680 billion yuan, an increase of 40% and 21% in the fourth quarter alone. The annual gross profit margin is 30.31% (-3.75pct.) 3) The revenue from the whole packaging channel was about 1.9 billion, and the receipt of orders increased by 90%. It is good to receive orders in the whole package. We are optimistic about the continuous volume of the whole package channel in 2022. Bulk: in 2021, the company's bulk channel revenue was 3.673 billion yuan, a year-on-year increase of 37%, a year-on-year increase of 22% in the fourth quarter, and the gross profit margin was 30.80% (- 1.90 PCT.), The company deepened the mode of headquarters + service provider, focused on high-quality real estate customers, and the gross profit margin of Q4 business increased and stabilized month on month. Category end: the income of wardrobe and supporting products exceeded 10 billion, and the wooden door stepped into the order of one billion. The company has opened up the integrated sales mode of "customized core + supporting products + door and wall system" to promote the performance of the whole category. 1) Wardrobe and supporting furniture: in 2021, the revenue was 10.172 billion yuan, an increase of 49.53%, an increase of 26% in the fourth quarter alone, and the annual gross profit margin was 32.19% (- 4.23 PCT.). 2) The revenue of kitchen cabinets was 7.529 billion yuan, an increase of 24.22% and 10.50% in the fourth quarter alone. The annual gross profit margin was 34.35% (- 1.82 PCT.). 3) Bathroom & wooden door: in 2021, the revenue of bathroom and wooden door was 990 million and 1.24 billion respectively, with a year-on-year increase of 33.72% and 60.36%. Other products other than customized cabinets in the whole packaging channel began to be sold at a high speed, and the effects of category integration and big home strategy continued to appear.
Joint venture is the leading way to explore new traffic channels. In 2018, the company took the lead in expanding the decoration channel in the industry, cooperated with head decoration enterprises and occupied the front-end channel. In 2021, the company launched the whole customized brand "Star House" and the material supply platform "oupai excellent material", realizing the integrated marketing from single product to platform, driving the rapid growth of main and auxiliary material categories such as customization, supporting and packaging materials. In 2022, the company announced that it would pilot the establishment of joint ventures in 8 cities including Shanghai and Hangzhou to explore a new model of "customized decoration integration" for packaged large homes. Under the joint venture mode, share equity internally, deepen interest binding, stimulate channel vitality, strengthen the European brand effect and flow dominance externally, further develop the decoration channel, deepen the moat of retail channel, and slowly expand the platform logic of home decoration integration.
Investment suggestion: the company has outstanding advantages in product power, channel power and brand power, the big home strategy is stable and Zhiyuan, and the leading position is stable. We estimate that the company's operating revenue from 2022 to 2024 will reach 24.3 billion yuan, 28.5 billion yuan and 33.3 billion yuan, with a year-on-year increase of 18.9%, 17.4% and 16.6%, and the net profit attributable to the parent company will reach 3.19 billion yuan, 3.79 billion yuan and 4.43 billion yuan (according to the profit forecast adjusted according to the annual report, the previous forecast value from 2022 to 2023 will be 3.32 billion yuan and 3.93 billion yuan), with a year-on-year increase of 19.5%, 18.8% and 17.1%, corresponding to EPS of 5.23, 6.21 and 7.27 yuan, maintaining the "buy" rating.
Risk tips: the risk of substantial fluctuations in the price of raw materials, the risk of intensified market competition, dealer management risk, etc
