\u3000\u3 Shengda Resources Co.Ltd(000603) 833 Oppein Home Group Inc(603833) )
Event:
The company released the annual report of 2021: the annual revenue of 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%; The net profit deducted from non parent company was 2.510 billion yuan, with a year-on-year increase of 29.72%; The basic earnings per share is 4.40 yuan.
Guoyuan view:
The two wings of integrated home furnishings are advancing together, the performance of CO drive is increasing, and the layout of multiple categories and brands helps long-term growth
In 2021, the company achieved dual brands to enter the integrated packaged customized track, and the packaged large home business continued to increase in volume. The annual order receiving performance increased by more than 90% year-on-year, which is an important driving force for the rapid growth of overall revenue. In the whole year, the company achieved revenue of 20.442 billion yuan (YoY + 38.68%). Quarterly, q1-4 company achieved revenue of 33.00/49.01/62.02/6.040 billion yuan respectively, with a year-on-year increase of 130.74% / 38.61% / 30.12% / 20.60%. In the whole year, the net profit attributable to the parent company was 2.666 billion yuan (YoY + 29.23%). Quarterly, q1-4 achieved net profit attributable to the parent company of 244 / 769 / 11.01 / 552 million yuan respectively, with a year-on-year increase of + 340.02% / + 30.15% / + 14.56% / - 9.84%. In terms of product matrix, the sales volume of the company's overall cabinet / wardrobe / overall bathroom / overall wooden door increased by 25.10% / 50.46% / 34.94% / 60.62% year-on-year respectively; The core cabinet products increased steadily to 7.529 billion yuan (YoY + 24.22%), and the wardrobe and supporting furniture products continued to increase in large quantities, rising to 10.172 billion yuan (YoY + 49.53%) against the trend under the high level of raw materials. In terms of revenue channels: Direct stores / distribution stores realized revenue of 587 / 15.680 billion yuan, accounting for 2.87% / 76.71% of the total revenue, and bulk business channels realized revenue of 3.673 billion yuan, accounting for a small decline to 17.97%. In terms of brand building, the company has formed a brand matrix of high-end brands such as ponice, medium and high-end brands such as europay and opponey, as well as the emerging brand star house, which can meet the needs of different consumers in a differentiated way.
The price fluctuation of raw materials causes short-term pressure on profitability, and the marginal cost is optimized during the period
Affected by the intensification of industry competition, the fluctuation of raw material prices and the increase of sales of low gross profit supporting products, the company's annual profitability was under short-term pressure. The comprehensive gross profit margin decreased by 3.39 PCTs to 31.62% and the net profit margin decreased by 0.96 PCTs to 13.03%. In terms of period expenses, benefiting from the company's scale effect and fine management, the period expenses were optimized. The sales expense rate / management expense rate / financial expense rate decreased by 1.00pcts/0.99pcts/0.33pcts to 6.78% / 5.54% / - 0.56% year-on-year. In terms of R & D investment, the company pays attention to the continuous improvement of technological innovation ability. In 2021, the R & D investment was 908 million yuan, with a year-on-year increase of 29.85%, and the sales expense rate decreased by 0.30pcts to 4.44%.
Multi core advantages are expected to increase the leading market share of customized home furnishings
Benefiting from the nationwide layout of sufficient production capacity, improving the efficiency of the supply chain and superimposing the company's unique advantages in marketing and channels, in the future, under the integrated sales mode of customized core + supporting products + door wall system, the packaged large home is expected to continue in large quantities and further strengthen the company's core competition barriers. In the increasingly fierce market competition environment, relying on its leading position in cabinet and whole house customization, the company is expected to further improve its market share.
Investment advice and profit forecast
The company is a leader in customized home furnishings. With the continuous upgrading of brand and product strength, the company has cut into the packaged home in advance + deep sinking channel layout + University supply chain management to build competitive barriers. The company's market share is expected to further improve. We adjusted the profit forecast. It is expected that the company will achieve revenue of 24.189/28.534/32.808 billion yuan from 2022 to 2024, net profit attributable to the parent company of 3.019/34.24/3.924 billion yuan, EPS of 4.96/5.62/6.44 yuan, corresponding to PE of 24.42/21.54/18.79 times, maintaining the "buy" rating.
Risk tips
Price fluctuation of raw materials; Industry competition intensifies; Channel expansion is less than expected
