\u3000\u3 Shengda Resources Co.Ltd(000603) 833 Oppein Home Group Inc(603833) )
Performance summary: the company issued the annual report of 2021. In 2021, the company achieved a revenue of 20.44 billion yuan, a year-on-year increase of 38.7%; The net profit attributable to the parent company was 2.67 billion yuan, an increase of 29.2% in the same period and a compound growth rate of 22.9% in two years; Among them, Q4 achieved a revenue of 6.04 billion yuan, a year-on-year increase of 20.6%, and realized a net profit attributable to the parent of 550 million yuan, a year-on-year decrease of 9.8%. The year-on-year decline of Q4’s net profit attributable to the parent is mainly affected by factors such as the rise of raw material prices. On the whole, the performance is bright.
The rise of raw materials has put pressure on the gross profit margin, and the management has been optimized to maintain the stability of profitability. The gross profit margin in 2021 was 31.6%, a year-on-year decrease of 3.4pp, which was mainly affected by the rise in the price of raw materials (the cost of materials in the cost increased by 52%); Specifically, the gross profit margin of cabinets was 34.4% (- 1.8pp), the gross profit margin of wardrobe and supporting furniture was 32.2% (- 4.2pp), the gross profit margin of bathroom was 25.4% (- 1.3pp), and the gross profit margin of wooden doors was 13.8% (- 0.1pp). The decline in the gross profit margin of wardrobe and supporting products was mainly due to the change of the statistical caliber of the company and the inclusion of supporting products originally included in other income into the category of wardrobe. In terms of expense rate, the total rate of the company in 21 years reached 16.2%, a year-on-year decrease of 2.6pp. In terms of spin off, the sales expense rate / management expense rate / R & D expense rate / financial expense rate in 2021 were 6.8% (- 1pp) / 5.5% (- 1pp) / 4.4% (- 0.3pp) / – 0.6% (- 0.3pp), and the cost control continued to be optimized. The company has maintained stable profitability through large-scale procurement and fine management. The net interest rate of the company in 21 years reached 13%, a year-on-year decrease of 1pp.
The whole category goes hand in hand, and multiple businesses bloom with bright spots. By category, in 21 years, the revenue of wardrobe and supporting furniture reached 10.17 billion yuan, a year-on-year increase of 49.5%, accounting for 49.8%, becoming the largest category of the company and the most important contribution to revenue growth. The revenue of cabinets reached 7.53 billion yuan, with a year-on-year increase of 24.2%, accounting for 36.8%. In the past 21 years, the channels of cabinets have been rapidly expanded, and the multi-point layout of integral decoration, distribution and integrated kitchen has further consolidated the competitive advantage. Wooden doors achieved a revenue of 1.24 billion yuan, an increase of 60.3% year-on-year, accounting for 6.1% of the revenue. During the year, the company made efforts to shape the brand through product + star dual IP, increased the proportion of high-quality dealers, and deeply explored home decoration cooperation to achieve rapid growth in performance; The revenue of sanitary ware was 990 million yuan, with a year-on-year increase of 33.8%, accounting for 4.8% of the revenue. The effect of various categories was remarkable. In terms of brands, the revenue of European brands was 17.46 billion, an increase of 35.6%; Opelli brand revenue was 1.42 billion, an increase of 65%; Operni brand revenue was 1.24 billion, an increase of 60.4%.
Store optimization and expansion are carried out simultaneously, and the volume and efficiency of all channels are increased simultaneously. In 2021, the company’s stores contributed 16.27 billion yuan in revenue, an increase of 40.4% year-on-year, and achieved a gross profit margin of 31.5%, down 3.6pp year-on-year. The revenue of bulk business was 3.67 billion yuan, a year-on-year increase of 36.9%, and the gross profit margin of bulk business was 30.8%, a year-on-year decrease of 1.9pp. Direct sales, distribution and bulk sales accounted for 2.9%, 77.9% and 18.2% respectively. In the past 21 years, the company has opened 363 new stores and 7475 stores in total at the end of the period, including 52 stores for cabinets (including comprehensive cabinets and clothes), 2459 stores now, more than 1300 stores (including optimization, upgrading and transformation) have been built in the whole year, more than 3000 retail dealer cooperative decoration enterprises have been promoted, and the innovative integrated kitchen model has opened more than 600 stores in the whole year; The net number of independent wardrobe stores is 77, and there are now 2201; There are 217 net bathroom stores and 805 existing ones; Opaline has 61 net businesses and 989 currently; There are 44 opaluminium doors closed, and there are 1021 now. The store efficiency and the growth rate of the same store have increased significantly.
Profit forecast and investment suggestions. It is estimated that the EPS from 2022 to 2024 will be 5.33 yuan, 6.39 yuan and 7.55 yuan respectively, and the corresponding PE will be 23 times, 19 times and 16 times respectively, maintaining the “buy” rating.
Risk tips: the risk of changes in the real estate market, the risk of sharp fluctuations in the price of raw materials, and the risk of intensified market competition.
