\u3000\u3 Shengda Resources Co.Ltd(000603) 008 Xlinmen Furniture Co.Ltd(603008) )
The company released the first quarterly report of 22 years, and the revenue of 22q1 was 1.405 billion yuan, a year-on-year increase of + 12.35%; The net profit attributable to the parent company was 54 million yuan, a year-on-year increase of – 36.18%; Deduction of non parent net profit of 49 million yuan, a year-on-year increase of + 12.9%, in line with expectations. The year-on-year growth rate of net profit attributable to the parent company decreased mainly due to the non recurring profit and loss of 40.93 million yuan in the same period of 21 years, mainly including: ① the disposal of equity transfer of film and television business and the recognition of income of 20.56 million yuan; ② The investment income of Ruixi company is 17.86 million yuan. In the first quarter of 2012, investment income and income from changes in fair value decreased significantly, and the company’s core main business made steady progress, which was in line with expectations.
The reserved part of the 21-year equity incentive plan was granted. A total of 18 people were encouraged and 800000 were granted. The company issued the 2021 stock option incentive plan (Draft) on December 9, 2021, which plans to grant a total of 4 million stock options, of which the first grant of 3.2 million to 167 employees has been completed. The company completed the grant of the reserved part of the equity incentive plan on April 21, 2022, and granted 800000 reserved stock options to 18 incentive objects with an exercise price of 28.22 yuan / share. So far, all the 21-year equity incentive plans have been granted. The stock options reserved for grant in this incentive plan will be exercised in three phases after 12 months from the date of authorization. The proportion of exercise in each phase is 40%, 30% and 30% respectively. The income assessment objectives for 22-24 years are 9.335/11.696/14.621 billion respectively, and the profit assessment objectives are 7.14/9.25/1.207 billion respectively. Each phase of assessment shall meet one of the two conditions of income / profit. The company estimates that the amortization cost of equity is 1.6134 million yuan, of which 55.59/62.17/34.7888000 yuan in 22-25 years respectively.
Revenue recognition, terminal sales and store opening are delayed in the short term or affected by the epidemic. Most home decoration is rigid demand. With the gradual control of the epidemic, orders are expected to be repaired. We believe that the outbreak has affected the pace of revenue recognition of the company to a certain extent. According to our previous grassroots research, the growth rate of the company’s terminal order receiving is much higher than that of the 22q1 statement end. Combined with the increase of about 11% of the 22q1 company’s inventory compared with the end of 21 years, some orders or logistics obstacles can not confirm the revenue in time; On the other hand, the impact of the epidemic has a short-term impact on the sales of offline stores and the speed of new stores. Some contracted stores or the decoration / opening time is delayed due to the impact of the epidemic. The company’s plan to open more than 1000 new stores in 22 years remains unchanged. The increment of stores is expected to accelerate the release with the gradual control of the epidemic. After the superposition of logistics improvement, the revenue of orders is gradually confirmed, and the rigid demand for home decoration is released after the epidemic, and the orders are expected to be repaired.
The gross profit margin and net profit margin deducted from non parent company remained stable year-on-year. The company’s 22q1 gross profit margin was 34.26%, year-on-year -0.2pct, deducting the non parent net profit margin of 3.5%, which was flat year-on-year. 22q1 sales / management / R & D / financial expense rates were 19.93%/6.4%/2.81%/1.33% respectively, with a year-on-year increase of -1.45/+1.4/+0.16/+0.47pct respectively. The increase in management expenses was mainly due to the increase in wages, training and amortization expenses, and the effective control of other expenses.
Profit forecast and rating: in recent years, the penetration rate of mattress category in China market is about 60%, and the penetration rate of category is expected to gradually increase; The industry structure is still scattered, Xlinmen Furniture Co.Ltd(603008) city accounts for about 4%, and the Cr5 of the mattress industry is less than 20%. Compared with the Cr5 of the mattress industry in the United States, which is close to 70%, the industry concentration has more room to improve. As the leader of the mattress industry, the Wuxi Online Offline Communication Information Technology Co.Ltd(300959) channel of the company continues to expand, and the influence of independent brands is gradually established. With the continuous optimization of the industry competition pattern, under the background of the rise of domestic products, the leading position of the company will continue to be consolidated by relying on strong product and channel strength. It is estimated that the net profit attributable to the parent company in 22-24 years will be RMB 720 / 9.3 / 1.22 billion respectively, with a year-on-year increase of + 28.5% / + 30.1% / + 30.5%, and the corresponding PE is 14x / 11x / 8x, Maintain the “buy” rating.
Risk warning: the expansion of terminal stores is less than expected; The impact of the epidemic continues; Intensified industry competition, etc.
