\u3000\u3 Shengda Resources Co.Ltd(000603) 833 Oppein Home Group Inc(603833) )
Core view
The annual revenue of the company was 20.41 billion yuan, with a year-on-year revenue of + 4.81 billion yuan in 2021; The net profit attributable to the parent company was 2.666 billion yuan, a year-on-year increase of + 29.23%, and the net profit attributable to the parent company after deduction of non-profit was 2.51 billion yuan, a year-on-year increase of + 29.72%. It is proposed to distribute a cash dividend of 17.5 yuan (including tax) for every 10 shares.
Comments:
The large packaged home drives the growth of various categories, and the annual business performance is in line with expectations. By product, the company achieved revenue of 75.29/101.72/9.89/1.236 billion yuan for kitchen cabinets / wardrobe and supporting / bathroom / wooden doors during the year, with a year-on-year revenue of + 24.22% / + 49.53% / + 33.72% / + 60.36% respectively. The strategic effect of packaged large home was released stably, and the growth of wardrobe and wooden door categories was strong, driving the company’s annual revenue to exceed 20 billion yuan. Quarter by quarter, Q4 single quarter operating performance was affected by factors such as the high base in the same period last year, the epidemic at the end of the year, and the rise in raw material prices, and the growth rate declined. Q4 achieved a revenue of 6.04 billion yuan in a single quarter, a year-on-year increase of + 20.6%, a net profit attributable to the parent of 552 million yuan, a year-on-year increase of – 9.84%, and a net profit attributable to the parent of 497 million yuan after deduction, a year-on-year increase of – 9.38%.
The gross profit margin is under short-term pressure from the rise of raw material prices, and the net profit margin is basically stable. The company’s annual gross profit margin rose from -3.39 pcpts to 31.62% year-on-year. We believe that the main reasons are: (1) the price rise of raw materials such as sectors; (2) The gross profit margin of bulk business decreased; (3) The proportion of supporting products with relatively low gross profit margin increased rapidly. The company continued to reduce costs and increase efficiency. During the whole year, the expense rate increased from -2.62 pcpts to 16.19% year-on-year, including sales expense rate of – 1 pcpts to 6.78%, management and R & D expense rate of -1.29 pcpts to 9.98%, financial expense rate of -0.33 pcpts to -0.56%. Under the comprehensive influence, the annual net interest rate increased from -0.95 pcpts to 13.03% year-on-year, and the overall profitability remained basically stable.
The performance of all channels was stable, and the packaged large home business grew strongly. In terms of channels, the annual direct sales / distribution / bulk business contributed 587 / 15.680 / 3.673 billion yuan respectively, with a year-on-year increase of + 47.33% / + 40.20% / + 36.92% respectively. In terms of the number of channels, there were + 52 / + 77 / + 61 / + 217 / – 44 to 2459 / 2201 / 989 / 805 / 1021 European style cabinets / wardrobe / opelli / bathroom / wooden door stores in the whole year. The packaged home business has made great strides, launched a new brand “starhomes Star home”, and realized that the dual brand entered the whole customized track. The order receiving amount of the packaged home business in the whole year increased by more than 90% year-on-year.
Investment suggestion: promote the new model of “customized decoration integration” for large home, and the leading advantage is expected to be further expanded. The company plans to establish a joint venture with cooperative dealers to promote the “big home” model to a new level, and the leading advantage is expected to be further expanded. We maintain the company’s profit forecast. It is estimated that the net profit attributable to the parent company from 2022 to 2024 will be RMB 33.24/39.17/4.569 billion respectively, corresponding to the current market value PE of 22 / 19 / 16x respectively, maintaining the “buy” rating.
Risk tip: the cost of raw materials fluctuates sharply, the real estate market fluctuates, and the channel development is less than expected.
