\u3000\u3 Shengda Resources Co.Ltd(000603) 816 Jason Furniture (Hangzhou) Co.Ltd(603816) )
Event:
The company released the annual report of 2021 and the first quarterly report of 2022: the annual revenue of 2021 was 18.342 billion yuan, a year-on-year increase of 44.81%; The net profit attributable to the parent company was 1.664 billion yuan, a year-on-year increase of 96.87%; The net profit deducted from non parent company was 1.427 billion yuan, with a year-on-year increase of 141.55%; The basic earnings per share is 2.65 yuan. In the first quarter of 2022, the revenue reached 4.54 billion yuan, an increase of 20.05% year-on-year and a decrease of 11.27% month on month; The net profit attributable to the parent company was 443 million yuan, a year-on-year increase of 15.11% and a month on month increase of 3.90%.
Guoyuan view:
Driven by domestic and foreign sales, the performance has increased rapidly in 21 years, and the advantageous products have increased steadily
Benefiting from the brilliant sales performance of domestic and foreign channels and the steady growth of revenue from superimposed advantageous products, the company achieved rapid growth in the annual performance of 2021, and the growth potential of 2022q1 remains unchanged. Quarter by quarter, from 2021q1 to 2022q1, the company achieved revenue of RMB 3.782/42.34/52.09/51.17/4.540 billion respectively, with a year-on-year increase of 65.32% / 64.52% / 41.42% / 24.16% / 20.05%. The company achieved net profit attributable to parent company of RMB 3.85/3.87/4.65/4.27/443 million respectively, with a year-on-year increase of 25.58% / 43.91% / 7.24% / 359.61% / 19.20%. Products: in 21 years, the sales volume of sofa and bed products increased by 45.39% / 43.45% year-on-year to 25008 / 1340600 sets respectively. Among them, sofa products achieved a revenue of 9.267 billion yuan in 2021, with a year-on-year increase of 44.51%, accounting for 50.53% of the annual revenue; Bed products / integrated products / customized products reached RMB 3.338/31.40/660 billion respectively, with a year-on-year increase of 42.75% / 41.13% / 44.80%. In the future, the company will develop and expand high potential products such as mattresses and functional sofas based on the original advantageous product line, and continue to strengthen brand competitiveness. Channel: the company actively promoted the layout of direct selling stores. By the end of 2021, the total number of direct selling stores was 152, an increase of 47 over the same period last year. In addition, the company actively built export channels and achieved a revenue of 6.918 billion yuan in the 21st century, with a year-on-year increase of 48.68%, and the proportion of export revenue increased from + 0.98 PCTs to 37.72% year-on-year.
The gross profit margin is under pressure in the short term, and the expense rate remains stable during the period
Affected by factors such as the increase in the proportion of overseas low gross margin business and the fluctuation of raw material prices, the company’s gross margin declined in 21 years. Adjusted by accounting standards, the company’s comprehensive gross profit margin decreased by 1.10pcts to 28.87%. The 21-year comprehensive net interest rate increased by 2.43pcts to 9.07%, which was due to the one-time impairment of goodwill in 20q4, resulting in a low profit base in the same period of 20 years. The 21-year net interest rate achieved marginal repair, and the profitability of 22q1 continued to improve month on month. In terms of period expenses, after adjusting to the same caliber, the sales expense rate in 21 years increased by 0.29pcts to 14.74% year-on-year, and the management expense rate / financial expense rate decreased by 0.56pcts/0.65pcts to 1.79% / 0.39% year-on-year. In addition, the company pays attention to the continuous improvement of technological innovation ability. In 2021, the R & D cost was 302 million yuan, a year-on-year increase of 46.27%; The R & D expense ratio increased by 0.02pcts to 1.65%.
The global production capacity layout superimposes the export expansion strategy, and the medium – and long-term growth potential remains unchanged
The company’s “Chongqing + Hangzhou + Mexico” production capacity layout at home and abroad shows the company’s confidence in expansion and superimposes the high demand for overseas household products. In the future, the company will make efforts to export and form a two wheel drive development pattern at home and abroad. In addition, on the basis of “1 + N + X” multi-dimensional shaping of channel advantages, the company further improves the influence of high potential products relying on high-quality products, and the medium and long-term performance growth potential will not decrease in the future.
Profit and investment forecast
The company is a leader in the software home furnishing industry. With the continuous improvement of brand power & product power, the superposition of multi-dimensional channel advantages, and the active expansion of overseas markets, the medium and long-term growth logic of the company remains unchanged; In the short term, with the subsequent improvement of raw material costs, exchange rates and other factors, the company’s profitability is expected to continue to repair. We adjusted the profit forecast. It is expected that the company will achieve revenue of 22.8762792033577 billion yuan, net profit attributable to the parent company of 2.085/25.22/3.020 billion yuan, EPS of 3.30/3.99/4.78 yuan and corresponding PE of 17.61/14.55/12.15 times respectively from 2022 to 2024, maintaining the “buy” rating.
Risk tips
Price fluctuation of raw materials and sea freight; The channel construction is not as expected; The expansion of new categories was less than expected.
