\u3000\u3 Shengda Resources Co.Ltd(000603) 833 Oppein Home Group Inc(603833) )
Revenue growth exceeded market expectations, and the profit side of 2021q4 was slightly under pressure. The company’s revenue in 2021 was 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%. Among them, the revenue of 2021q4 was 6.04 billion yuan, a year-on-year increase of + 20.6%; The net profit attributable to the parent company was 552 million yuan, a year-on-year increase of – 9.8%.
Wardrobe and accessories continued to increase, and the income scale exceeded 10 billion. In terms of products, 1) the income of wardrobe and accessories (New caliber) was 10.17 billion yuan, up + 49.5% year-on-year, accounting for + 3.6pp to 49.8% year-on-year. The wardrobe category continued to grow rapidly, mainly due to the high growth of packaging channels, the continuous improvement of store operation efficiency and the rapid growth of opelli (opelli’s revenue was 1.43 billion yuan in 2021, a year-on-year increase of + 65.0%). 2) cabinet revenue was 7.53 billion yuan, a year-on-year increase of + 24.2%; 3) The income of sanitary ware was 989 million yuan, a year-on-year increase of + 33.7%; The revenue of wooden doors was 1.24 billion yuan, a year-on-year increase of + 60.4%.
The whole house continued to lead, and the order receiving performance in 2021 increased by more than 90% year-on-year. In terms of distribution channels, 1) the revenue from distribution channels was 15.68 billion yuan, a year-on-year increase of + 40.2%; 2) The direct business income was 590 million yuan, a year-on-year increase of + 47.3%; 3) The revenue from bulk business was 3.67 billion yuan, a year-on-year increase of + 36.9%. In terms of the number of stores, by the end of 2021, there were 2459 European style cabinets (+ 52); 1079 European style wardrobe (+ 20); 1021 oppeni doors (- 44); 805 European style sanitary ware (+ 217); There are 989 opelli (+ 61). In terms of packaging channels, in 2021, the performance of the company’s packaging and receiving orders increased by more than 90% year-on-year. In April 2021, the company launched the new brand “starhomes Star home” in the whole decoration channel, and realized rapid and large-scale production with the help of the leading experience of “European style whole decoration big home”.
With the cost rising and falling, the profitability is slightly under pressure. In 2021, the company’s gross profit margin increased from -3.39pp to 31.62% year-on-year, of which the gross profit margin of cabinet was 34.35% (year-on-year -1.82pp); The gross profit margin of wardrobe and accessories was 32.19% (year-on-year -4.23pp); The gross profit margin of sanitary ware was 25.40% (year-on-year -1.27pp); The gross profit margin of wooden doors was 13.82% (year-on-year -0.13pp). In terms of period expenses, the sales expense ratio -1pp to 6.78%; The management expense ratio (including the R & D expense ratio of 4.44%) increased from -1.28pp to 9.98% year-on-year; The financial expense ratio increased from -0.32pp to -0.56% year-on-year. The net profit margin on sales rose from -0.96pp to 13.03% year-on-year. 2021q4 gross profit margin -4.04pp to 28.98% year-on-year; The net profit margin on sales was – 3.1pp to 9.13% year-on-year.
Good cash flow and operational efficiency. In 2021, the company’s net operating cash flow was 4.046 billion yuan, a year-on-year increase of + 4.02%; The ratio of net cash flow from operating activities to net income from operating activities was 139.39%. In terms of operation efficiency, the number of inventory turnover days was 29.25 days, a year-on-year decrease of 1.84 days; The turnover days of accounts receivable were 14.21 days, with a year-on-year increase of 0.84 days.
Profit forecast and investment rating: considering the rise of raw material prices and slightly reducing the profit forecast for 20222023, we predict that the net profit attributable to the parent company in 20222024 will be 3.08 billion yuan, 3.63 billion yuan and 4.25 billion yuan respectively (the original forecast for 20222023 is 3.26 billion yuan and 3.86 billion yuan), corresponding to pe24, 20 and 17x. The leading advantages of the company are continuously consolidated, the valuation has a safety margin, and the “buy” rating is maintained.
Risk tips: rising raw material prices, intensifying industry competition, decline in real estate sales, etc.
