\u3000\u30 Shenzhen Quanxinhao Co.Ltd(000007) 85 Easyhome New Retail Group Corporation Limited(000785) )
Event: the company released its annual report for 2021, and achieved an operating revenue of 13.071 billion yuan during the reporting period, a year-on-year increase of + 45.35%; The net profit attributable to the parent company was RMB 2.325 billion, a year-on-year increase of + 70.62%, and the net profit attributable to the parent company after deducting non profits was RMB 2.229 billion, a year-on-year increase of + 75.72%.
Comments:
The digital transformation of the main household industry continued to exceed our expectations throughout the year. Throughout the year, while deeply cultivating the main household business, the company continued to promote digital transformation, and actively expanded new growth curves in the business world of China, self support and IP services. The company's annual overall sales volume (Gmv) reached 104.03 billion yuan, a year-on-year increase of + 58.24%, driving the annual operating revenue performance slightly higher than our expectations. From the perspective of single quarter, the company's Q4 single quarter revenue was 3.298 billion yuan, a year-on-year increase of + 20.17%, and the net profit attributable to the parent was 606 million yuan, a year-on-year increase of + 35.36%. The net profit attributable to the parent after deduction was 520 million yuan, a year-on-year increase of + 31.78%. Q4 revenue and profit continued to grow steadily.
The expense rate increased significantly during the period affected by the new standards, but the profitability of the company was still greatly improved. Driven by the company's digital empowerment and efficient operation capacity, the annual gross profit margin increased from + 7.77 pcpts to 48.14% year-on-year. In terms of expense rate during the period, the sales expense rate is - 2.76 pcpts to 9.13%, the management and R & D expense rate is - 0.46 pcpts to 4.24%, and the financial expense rate is + 7.43 pcpts to 9.05%. Among them, the financial expense rate increases significantly under the influence of the new leasing standards. Under the comprehensive influence, the annual net profit margin of the company increased from + 2.63 pcpts to 18.36% year-on-year. With the continuous promotion of the company's digital transformation and the gradual weakening of the impact of the new standards on financial expenses in the future, the profitability of the company still has room for further improvement.
The floor efficiency of Direct stores is leading in the industry, creating a digital closed-loop home decoration with deep growth potential. By the end of the reporting period, the company had 95 Direct stores and 326 franchise stores. In the whole year, directly operated home stores contributed 7.04 billion yuan in revenue, a year-on-year increase of + 21%. The operating income per unit area reached 144169 yuan, a year-on-year increase of + 17.63%, leading the flat efficiency industry. The company is committed to building a home decoration industry service platform, opening up the whole industry chain of decoration design / furniture and building materials sales / smart home / logistics distribution / home service, and realizing the closed-loop digital consumption. Throughout the year, self operated and IP services such as every flat and every house designer and Dongwo achieved excellent performance, and the company has deep long-term growth potential.
Investment suggestion: "100 counties and 100 malls" accelerate the sinking of channels, and the digital home decoration industry platform is outstanding. The company's channel sinking and digital transformation are accelerated, and the energy of s2b2c digital industry service platform is expected to be continuously released. We maintain the company's profit forecast. It is estimated that the net profit attributable to the parent company from 2022 to 2024 will be RMB 2.847/32.79/3.797 billion respectively, corresponding to the current market value PE of 11 / 10 / 8x respectively, maintaining the "buy" rating.
Risk tip: the real estate policy regulation is uncertain, the epidemic situation is repeated, and the development of stores is less than expected
