\u3000\u3 Shengda Resources Co.Ltd(000603) 833 Oppein Home Group Inc(603833) )
Event: the company announced in its annual report that in 2021, it achieved an operating revenue of 20.442 billion yuan, a year-on-year increase of 38.68%, a net profit attributable to the parent of 2.666 billion yuan, a year-on-year increase of 29.23%, and a year-on-year increase of 29.72% in net profit deducted. It is proposed to send 17.50 yuan (including tax) for 10 years.
Comments:
Home furnishing and decoration continued to increase, and the effect of big home platform became more and more obvious. In Q4, the company’s revenue was 6.040 billion yuan, a year-on-year increase of 20.60%. By product, in 2021, the income of wardrobe and its supporting furniture products, cabinets, wooden doors and bathroom increased by 49.53%, 24.22%, 60.36% and 33.72% respectively year-on-year, of which the total income of wardrobe and home accessories exceeded 10 billion yuan. By channel, the revenue of Direct stores, distribution stores and bulk businesses in 2021 increased by 47.33%, 40.20% and 36.92% respectively year-on-year; Among them, the proportion of revenue from bulk business decreased from 18% in 20 years to 16% in 21 years. The number of packaged large homes continued to increase, and the performance growth rate of packaged households receiving orders exceeded 90% in 21 years. In terms of store expansion, in 2021, there will be a net increase of 52 to 2459 oupai cabinets, 77 to 2201 oupai wardrobe, 217 to 805 oupai sanitary ware and 61 to 989 ouboli; Among them, there are more than 3000 cooperative decoration enterprises of cabinet retail dealers, and more than 600 stores have been opened in 21 years by innovating the integrated kitchen business model. At the end of the year, the balance of the company’s advance collection related subjects increased by 36% year-on-year, and the abundant order reserves formed a good support for the future revenue growth.
The gross profit margin decreased, the expense rate was optimized, and the operation efficiency was improved. In 2021, the company’s comprehensive gross profit margin was 31.62%, a year-on-year decrease of 3.39 PCT, among which, by product, the gross profit margin of wardrobe and its supporting furniture products, cabinets, wooden doors and sanitary ware changed by -4.23 PCT, -1.82 PCT, -0.13 PCT and -1.27 PCT respectively. Q4 single quarter comprehensive gross profit margin was 28.98%, a year-on-year decrease of 4.04pct. In terms of expenses, the rates of sales, management, R & D and financial expenses of single Q4 changed by -1.45pct, -0.39pct, + 0.74pct and -1.04pct respectively, and the expense control continued to be optimized. The net profit attributable to the parent company decreased by 84.9% year-on-year, and the net profit attributable to the parent company decreased by 84.9% year-on-year. In addition, the company consolidated basic management and achieved remarkable results in optimizing operation efficiency. In the past 21 years, the company’s inventory turnover rate increased by 0.73 times to 12.31 times year-on-year; The net business cycle decreased by 4.48 days to 2.73 days year-on-year. In addition, in the past five years of informatization, the company has successfully built a large-scale non-standard customized home intelligent manufacturing support technology platform and industrial Internet platform, and fully realized the “75% review free, 85% review free and fast review, and 95% one-time pass” of customized orders.
Optimistic about the accelerated improvement of leading shares and maintain the “buy” rating Oppein Home Group Inc(603833) for the innovation and iteration ability of business model, the company is leading the industry. In recent years, the company has successfully built a leading position in the two core categories of overall cabinet and whole house customization, superimposed the core advantages of marketing, manufacturing and channel, and actively promoted the upgrading of big home strategy. We believe that there is little difference in the products of the home furnishing industry. The company is rapidly building a channel moat by using the phased low gross profit business. In the long run, it is expected to further strengthen the “European style” brand effect and accelerate the improvement of market share. It is estimated that the net profit attributable to the parent company from 2022 to 2024 will be 3.169 billion yuan, 3.682 billion yuan and 4.374 billion yuan respectively, with a year-on-year increase of 18.9%, 16.2% and 18.8% respectively. At present, the share price corresponds to the PE of 2022, which maintains the “buy” rating.
Risk factors: the risk of sharp decline in real estate sales and intensified industry competition
