\u3000\u3 Shengda Resources Co.Ltd(000603) 833 Oppein Home Group Inc(603833) )
The company released the annual report of 2021: in 21 years, the revenue was 20.442 billion yuan (+ 38.7%), the net profit attributable to the parent was 2.666 billion yuan (+ 29.2%), and the net profit not attributable to the parent was 2.510 billion yuan (+ 29.7%); Single Q4 achieved revenue of 6.040 billion yuan (+ 20.6%), net profit attributable to parent company of 552 million yuan (- 9.8%), net profit attributable to non parent company of 497 million yuan (- 9.4%). The pressure on 21q4 profit is mainly due to the increase in the provision for credit impairment (21 full year + 92 million yuan, a single 21q4 increase of 71 million yuan). The net profit attributable to the parent company in 21 years / 21q4 after stripping is + 33.4% / + 1.7% year-on-year.
Retail: full category and full channel extension, highlighting the ability of industry integration. The company has extended the whole category of customized home furnishings. For 21 years, the wardrobe and super cabinet have been the first in the industry, with diversified growth leading. In 21 years, the retail revenue was 16.267 billion yuan (+ 40.4%), and the gross profit margin was 31.5% (- 3.6pct); Among them, 21q4 achieved revenue of 4.801 billion yuan (+ 21.7%), gross profit margin of 27.9% (- 5.3pct), the number of stores reached 7475 (annual + 363, single Q4 + 14), and the number of dealers was 5112 (annual – 12).
1) kitchen cabinet: in the 21st year, the company achieved revenue of 7.529 billion yuan (+ 24.2%), gross profit margin of 34.4% (- 1.8pct), mainly due to the fact that the company opened more than 1300 new and newly installed stores throughout the year and promoted the cooperation of retail dealers with more than 3000 installation enterprises; In addition, the multi-point layout of packaged, distributed and integrated kitchen is expected to be about 1.5 billion yuan; The revenue of 21q4 is 2.134 billion yuan (+ 10.5%), and the gross profit margin is 36.7% (+ 0.5pct). By the end of the 21st century, there were 2459 exclusive stores of European style cabinets (including integrated cabinets and clothes) (annual + 52, single Q4 + 29).
2) wardrobe and accessories: in the past 21 years, the company has achieved an income of 10.172 billion yuan (+ 49.5%) and a gross profit margin of 32.2% (- 4.2pct), which is mainly due to the company’s promotion of product upgrading and marketing model innovation, forming a cost-effective whole house space package, and the proportion of accessories has increased rapidly; Among them, the revenue of 21q4 is 4.435 billion yuan (+ 126.2%, new supporting products of caliber), and the gross profit margin is 23.5% (- 14.6pct). The decrease of gross profit margin is mainly due to the launch of the whole customization in mid September 21 (the performance is reflected in 21q4 at the statement end), and the increase of dealer subsidies. By the end of the 21st century, there were 2201 exclusive stores of oupai wardrobe (independent wardrobe) (annual + 77, single q4-24).
3) sanitary ware: in the past 21 years, the company has achieved an income of 989 million yuan (+ 33.7%) and a gross profit margin of 25.4% (- 1.3 PCT), which is mainly due to the company’s successful opening of packaged and bulk channels, and the effect of category integration is obvious; The revenue of 21q4 is 296 million yuan (+ 24.5%), and the gross profit margin is 29.3% (+ 0.9pct). By the end of the 21st century, there were 805 European style bathroom stores (annual + 217, single Q4 + 102).
4) wooden doors: in 21 years, the revenue was 1.236 billion yuan (+ 60.4%), and the gross profit margin was 13.8% (- 0.1pct), which was mainly due to the strengthening of category integration of opartney wooden doors, the effect of M6 profit model was prominent, the customer unit value was significantly improved, and the live broadcast with goods helped to receive more than 120000 orders; The revenue of 21q4 is 399 million yuan (+ 39.8%), and the gross profit margin is 11.2% (+ 3.8pct). By the end of the 21st century, there were 1021 oppeni wooden door stores (44 in the whole year, and q4-135 in single).
5) opaline: the company expanded from cupboard clothing to cupboard clothing, bathroom + electrical appliances + home accessories, made efforts to expand channels such as traditional retail upgrading + bag carrying + decoration enterprises + e-commerce, and effectively improved the customer unit value and customer flow. By the end of 21, opaline had 989 stores (annual + 61, single Q4 + 42).
Bulk: strictly control risks and make progress while maintaining stability. In 21 years, the revenue of bulk channels was 3.673 billion yuan (+ 36.9%), and the gross profit margin was 30.8% (- 1.9pct), of which 21q4 realized revenue of 1.038 billion yuan (+ 21.9%), and the gross profit margin was 31.8% (+ 5.9pct). The company strictly controls risks, strives for progress while maintaining stability, cooperates with high-quality strategic customers to carry out a number of parts and supporting items, infiltrates the loading business after hardbound, and transforms from a hardbound material supplier to a whole hardbound service provider.
Outfit: brave the wind and waves and make great progress. In 2018, the company launched the packaged large home, which is positioned as medium and high-end. In 2021, the number of orders received exceeded 90% year-on-year. At the same time, it launched the xingzhijia packaged home, which focuses on sinking the market, breaking through the restriction of one city and one business. In addition, it cooperated with europai premium materials & europaladi to integrate the main and auxiliary materials, furniture, household appliances and other products into its own supply chain system, and built an ecological packaged platform with space customization as the core and integrating mainstream building materials, home furnishings and decoration design.
The profit is slightly under pressure and the expense control is excellent. 1) 2021: gross profit margin is 31.6% (- 3.4pct), net profit margin is 13.0% (- 1.0pct). In terms of expense performance, during 2021, the expense rate is 16.2% (- 2.6pct), sales expense rate is 6.8% (- 1.0pct), management expense rate is 5.5% (- 1.0pct), financial expense rate is – 0.6% (- 0.3pct), and R & D expense rate is 4.4% (- 0.3pct). 2) Single Q4: gross profit rate is 29.0% (- 4.0pct), net profit rate is 9.1% (- 3.1pct). In terms of expense performance, during single Q4, the expense rate is 17.2% (- 2.1pct), sales expense rate is 5.9% (- 1.4pct), management expense rate is 5.6% (- 0.4pct), financial expense rate is – 0.6% (- 1.0pct), and R & D expense rate is 6.4% (+ 0.7pct). The decline of gross profit margin in 21q4 was mainly due to the rise of raw material prices and the strengthening of channel support. In addition, the proportion of low gross profit products increased.
Healthy cash flow and stable operating capacity. In 2021, the net operating cash flow was 4.046 billion yuan (+ 4.0%), and the single Q4 was 1.111 billion yuan (- 36.9%). By the end of 2021, the company’s accounts receivable and bills were 1.218 billion yuan (+ 52.8%), the turnover days were 14.21 days (+ 0.84 days), the inventory was 1.463 billion yuan (+ 80.9%), and the turnover days were 29.25 days (- 1.84 days).
Investment suggestion: the company breaks the ice against the trend, accelerates industry integration and has strong alpha attribute. We expect the net profit attributable to the parent company in 202224 to be RMB 3.04/35.6/4.13 billion, with a year-on-year increase of 14.2% / 17.1% / 16.0%, corresponding to PE of 24.2x/20.7x/17.8x.
Risk tip: the real estate industry has fallen faster than expected, the competition pattern has deteriorated, and the epidemic situation has repeatedly exceeded expectations.
