\u3000\u3 Shengda Resources Co.Ltd(000603) 833 Oppein Home Group Inc(603833) )
The company released its annual report for 2021 on April 22, with an annual revenue of 20.442 billion yuan, an increase of 38.7% at the same time, maintaining rapid growth. The company has significant advantages in multi-dimensional product channels and is expected to continue rapid expansion and maintain the buy rating.
Key points supporting rating
Multi category and multi-channel co drive high growth. In 2021, the company’s net profit was 2.67 billion yuan, an increase of 29.2% at the same time. Among them, Q4’s revenue was 6.04 billion yuan, an increase of 20.6%, and the net profit was 552 million yuan, a year-on-year decrease of 9.84%. The revenue maintained steady growth under the high base, and the profit side was under pressure. In terms of products, the company’s kitchen cabinet business maintained a relatively rapid growth, with a revenue of 7.53 billion yuan, an increase of 24.2% at the same time. The company opened more than 1300 new and newly installed stores throughout the year, actively promoted the retail packaged and integrated stove business, and the multi-channel layout helped the steady and large-scale volume of kitchen cabinets. On the one hand, the number of customers of the company increased by 220.7 billion yuan through the high-speed shopping and carrying of wardrobe, and the revenue of the company remained stable at the end of the period. On the other hand, the number of customers increased by 10.1 billion yuan through the same channel. On the other hand, the company maintained a stable growth rate of 10.1 billion yuan. The income of wooden door / bathroom increased by 60.4% / 44.7% at the same time.
In terms of channels, retail and bulk high growth are driven by two wheels. The retail channel revenue was 16.27 billion yuan, an increase of 40.4% at the same time, mainly because the company firmly promoted the multi brand and multi-channel strategy, improved the operation efficiency of the whole packaging business by fully empowering the whole packaging dealers, and the annual order receiving performance of the whole packaging increased by more than 90% at the same time. The revenue from bulk channels was 3.67 billion yuan, an increase of 36.9%. On the basis of strictly controlling risks, the company gave full play to its brand advantages and deeply cultivated national key supporting projects to ensure the benign and high growth of bulk business.
The cost rate has been significantly optimized and the growth momentum in the future is sufficient. The gross profit margin in 2021 was 31.6%, down 3.4pct at the same time, mainly due to the increase in the proportion of the company’s low gross profit supporting products and the rise in the price of raw materials. The cost ratio of the company was significantly optimized, and the sales / management cost ratio decreased by 1.0/1.0pct, indicating that the company further improved the cost investment efficiency. The total amount of advance receipts and contract liabilities at the end of the period was 2.09 billion yuan, an increase of 36.4% at the same time, showing a strong growth momentum. It is optimistic that the company will maintain a relatively high growth momentum.
Optimistic about the company to continue to strengthen retail and expand market share. In the context of stock competition in the industry, the company is expected to continue to give full play to the leading advantages of the two core categories of overall kitchen cabinets and whole house customization, and grab the flow from outside and dig the stock from inside. At the same time, the company strengthens the empowerment of dealers, which is expected to further improve the quality of marketing service and customer value. We are optimistic that the company will continue to give full play to its leading advantages and expand its market share in the future. Valuation
Under the current share capital, the expected earnings per share from 2022 to 2024 are 5.1 / 6.0 / 7.1 yuan respectively; The price earnings ratio is 24 / 20 / 17 times respectively. Maintain buy rating.
Main risks of rating
Industry competition intensifies, new product expansion fails to meet expectations, and raw material prices fluctuate
