\u3000\u3 Shengda Resources Co.Ltd(000603) 833 Oppein Home Group Inc(603833) )
Event overview
Oppein Home Group Inc(603833) released the annual report of 2021: in 2021, the company realized an operating revenue of 20.442 billion yuan, a year-on-year increase of + 38.68%; The net profit attributable to the parent company was 2.666 billion yuan, a year-on-year increase of + 29.23%. By quarter, Q4's operating revenue in a single quarter was 6.040 billion yuan, a year-on-year increase of + 20.60%; The net profit attributable to the parent company was 552 million yuan, with a year-on-year increase of - 9.84%. The revenue side maintained a steady growth, while the profit side fell year-on-year due to the cost side pressure such as the high base and the rise of raw material prices in the same period of last year. In terms of cash flow, the net cash flow from operating activities in 2021 was 4.046 billion yuan, a year-on-year increase of + 4.02%. Among them, the net cash flow from operating activities in Q4 in a single quarter was 1.111 billion yuan, a year-on-year decrease of - 36.85%. The cash flow from operating activities in a single quarter decreased year-on-year, mainly due to the impact of the high base in the same period of last year.
In addition, the company plans to distribute a cash dividend of 17.50 yuan (including tax) for every 10 shares.
Analysis and judgment:
Revenue side: the scale of wardrobe business exceeded 10 billion yuan, and the retail channel maintained high growth.
2021 is the first year of the company's long-term development goal of "building europay into a world excellent home group", and all products, channels and brands are performing beautifully. In terms of products, in 2021, the company's kitchen cabinets, wardrobe and supporting furniture products, bathroom and wooden doors achieved revenue of RMB 75.29 billion, RMB 10.172 billion, RMB 989 million and RMB 1.236 billion respectively, with a year-on-year increase of + 24.22%, + 49.53%, + 33.72% and + 60.36% respectively. All main businesses maintained high growth. Among them, the scale of wardrobe and supporting furniture products exceeded RMB 10 billion for the first time, which was the largest source of revenue of the company. In terms of channels, the sales of the company's distribution stores, Direct stores and bulk businesses in 2021 were 15.680 billion yuan, 587 million yuan and 3.673 billion yuan respectively, with a year-on-year increase of + 40.20%, + 47.33% and + 36.92% respectively. The main channels increased steadily. The company continued to promote the layout of stores, with a net increase of 363 stores to 7475 stores in 2021, including 52, 77, 61, 217, - 44 stores to 2459, 2201, 989, 805 and 1021 stores of europaise cabinets (including integrated cabinets), europaise wardrobe (independent wardrobe), europelli, europaise bathroom and europeany wooden doors respectively. The development of packaged home appliances has accelerated. In 2021, the performance of packaged home appliances receiving orders increased by more than 90% year-on-year, and the growth momentum of packaged home appliances is rapid. In terms of bulk channels, the company takes preventing risks and keeping the bottom line as the core, actively responds to market changes and strives for progress while maintaining stability. By brand, in 2021, europay, opaline and opaline achieved revenue of RMB 17.458 billion, RMB 1.426 billion and RMB 1.236 billion respectively, with a year-on-year increase of + 35.62%, + 65.03% and + 60.36% respectively. The main brand europay maintained steady growth, and the growth of opaline, opaline and other brands was significant. According to the company's annual report, in 2022, the company will continue to strengthen its operation and management ability, open up a new shore of the road of big home and promote the information-based deep enabling big home strategy. Under the background of repeated epidemic and intensified market competition, the company will strive to achieve year-on-year revenue + 15-20% and year-on-year net profit + 10-15%, highlighting the confidence of steady development and the leading style of customized home.
Profit side: Q4's profitability declined, and the expense rate was well controlled during the period.
In terms of profitability, in 2021, the company's gross profit margin and net profit margin were 31.62% and 13.03% respectively, with a year-on-year increase of -3.39pct and -0.96pct respectively. Among them, the gross profit margin and net profit margin in Q4 were 28.98% and 9.13% respectively, with a year-on-year decrease of -4.04pct and -3.10pct respectively. In terms of business, in 2021, the gross profit margins of kitchen cabinets, wardrobe and supporting furniture products, sanitary ware and wooden doors were 34.35%, 32.19%, 25.40% and 13.82% respectively, with a year-on-year increase of -1.82pct, -4.23pct, -1.27pct and -0.13pct respectively; In terms of channels, the gross profit margin of distribution stores, Direct stores and bulk businesses in 2021 was 30.31%, 64.13% and 30.80% respectively, with a year-on-year increase of -3.75pct, -2.23pct and -1.90pct respectively. Due to the cost side pressure of raw materials, the gross profit margin of the company's main businesses and channels decreased year-on-year.
In terms of period expense rate, the period expense rate of the company in 2021 was 16.19%, with a year-on-year rate of -2.62pct, of which the sales expense rate, management expense rate, R & D expense rate and financial expense rate were 6.78%, 5.54%, 4.44% and -0.56% respectively, with a year-on-year rate of -1.00pct, -0.99pct, -0.30pct and -0.33pct respectively. During Q4, the expense rate was 17.24%, with a year-on-year increase of -2.14pct, of which the sales expense rate, management expense rate, R & D expense rate and financial expense rate were 5.89%, 5.55%, 6.42% and -0.62% respectively, with a year-on-year increase of -1.45pct, -0.39pct, + 0.74pct and -1.04pct. The expense rate during the period was well controlled.
Investment advice
As a leading brand of customized home furnishings, the company is optimistic about the steady growth of retail kitchen cabinet business, the rapid development of wardrobe business, the beautiful performance of bulk channels, and the gradual volume of wooden doors, smart home and other new businesses. Considering the impact of repeated epidemics and high raw materials on the profit side, the previous profit forecast was lowered, and the operating revenue of the company in 22-23 years was reduced from 24.281/28.342 billion yuan to 24.194/28.305 billion yuan respectively; From 22 to 23 years, EPS decreased from 5.57/6.63 yuan to 4.95/5.88 yuan respectively, and it is estimated that the company's revenue and EPS in 2024 will be 32.622 billion yuan and 6.83 yuan respectively, corresponding to the closing price of 121.06 yuan / share on April 22, 2022, and PE will be 24 / 21 / 18 times respectively, maintaining the "buy" rating.
Risk tips
Household demand is less than expected; Completion data is less than expected; Uncertainty caused by channel change and intensified competition; Cabinet retail channel is impacted by hardcover market, exceeding expectations; Risk of sharp rise in raw material prices; The short-term epidemic has repeatedly affected.
