\u3000\u3 Shengda Resources Co.Ltd(000603) 833 Oppein Home Group Inc(603833) )
Event: on April 23, Oppein Home Group Inc(603833) issued the 2021 annual report. 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%; The net profit attributable to the parent company after deduction was RMB 2.510 billion, with a year-on-year increase of 29.72%. In 2021q4, the company realized an operating revenue of 6.040 billion yuan, a year-on-year increase of 20.60%; The net profit attributable to the parent company was 552 million yuan, a year-on-year decrease of 9.84%; The net profit attributable to the parent company after deduction was 497 million yuan, a year-on-year decrease of 9.38%.
The revenue of wardrobe and accessories exceeded 10 billion, the wooden door grew beautifully, and the large home continued to deepen
In terms of categories, the company extends cabinet customization to space customization of the whole category, and leads the industry with the “three high” (R & D, beauty and strict) standards. In 2021, the company’s cabinet, wardrobe and its supporting products, wooden door and bathroom achieved revenue of 75.29/101.72/12.36/989 million yuan respectively, an increase of 24.22% / 49.53% / 60.36% / 33.72% over the same period. In terms of brands, opal, opal Li and opal Ni achieved revenue of RMB 17.458/14.26/1.236 billion respectively, with a year-on-year increase of 35.62% / 65.03% / 60.36%. Among them, opelli has built a channel ecological chain of traditional retail upgrading + bag carrying + decoration enterprises + e-commerce, and expanded and upgraded to full category and full room customization of “cabinet, clothing, bathroom + electrical appliances + home accessories”; The performance of oppeni wooden door increased rapidly, and the effect of M6 profit model was prominent. The V3 sales design certification project helped greatly improve the customer unit value. In the whole year, it completed many star tour live broadcasts and top stream anchor live broadcasts with goods, and helped to receive more than 120000 orders.
Steady progress was made in the layout of all channels, and the volume of packaged large homes was accelerated
By channel, in 2021, the company’s distribution, direct sales and bulk channels achieved revenue of 15.680/5.87/3.673 billion yuan respectively, with a year-on-year increase of 40.20% / 47.33% / 36.92%. Among them, there were 52 / 77 / 217 / 61 / – 44 / 2 outlets in the whole year, reaching 2459 / 2201 / 805 / 989 / 1021 / 47. In 2021, more than 90% of all star brands were launched under the “All Star” brand integration strategy, and the performance of “All Star” brand was achieved year-on-year. At the same time, the company has successfully built a large-scale non-standard customized home intelligent manufacturing support technology platform and industrial Internet platform, built a full three-dimensional information model supporting the integration of large home design, display and manufacturing, established a data platform and business platform for marketing and manufacturing, and accelerated the implementation of large home strategy with digitization, informatization and intelligence.
The gross profit margin is under pressure in the short term, the expenses are well controlled during the period, and the operation quality and efficiency are improved
In the 21st year, the company’s comprehensive gross profit margin was 31.62%, with a year-on-year decrease of 3.39 PCT, which was mainly due to the company’s increased support for agents’ promotion subsidies, the rise in the price of raw materials, the increase in the proportion of sales volume of low gross profit supporting products and other factors. In terms of period expenses, the company’s period expense rate in 21 years was 16.19%, a year-on-year decrease of 2.62pct, the sales / management / R & D / financial expense rate was 6.78% / 5.54% / 4.44% / – 0.56% respectively, and a year-on-year decrease of -1.00 / – 0.99 / – 0.30 / – 0.33pct respectively. The expense control effectively alleviated the downward pressure on the net interest rate. The company’s net interest rate in 21 years was 13.03%, a year-on-year decrease of 0.96pct. The company actively optimized its operation efficiency. In the past 21 years, the company’s inventory turnover rate was 12.31 times, with a year-on-year increase of 0.73 times; The net business cycle was 2.73 days, a year-on-year decrease of 4.48 days.
Investment suggestion: Oppein Home Group Inc(603833) as a leading brand of customized home furnishings, it continues to make efforts in multiple categories and all channels, the categories of wardrobe and wooden door are developing rapidly, and the packaged home furnishings are expanding rapidly. It is expected to further improve the market share in the future. We estimate that the operating revenue of Oppein Home Group Inc(603833) 20222024 will be 24.217, 28.411 and 33.612 billion yuan, with a year-on-year increase of 18.47%, 17.32% and 18.31%; The net profit attributable to the parent company was RMB 3.032 billion, 3.587 billion and 4.308 billion, with a year-on-year increase of 13.74%, 18.31% and 20.10%, corresponding to PE of 24.3, 20.6 and 17.1, maintaining the investment rating of buy-a.
Risk warning: market competition intensifies the risk; Risk of recurrent outbreaks; Raw material price fluctuation risk.
