\u3000\u3 Shengda Resources Co.Ltd(000603) 833 Oppein Home Group Inc(603833) )
The company released its annual report for 21 years, and achieved an annual revenue of 20.442 billion yuan, a year-on-year increase of + 38.68%, of which Q1-Q4 was 33 / 49.01 / 62.02 / 6.04 billion yuan in a single quarter, a year-on-year increase of + 130.74% / + 38.61% / + 30.12% / + 20.6% respectively; The net profit attributable to the parent company was 2.666 billion yuan, a year-on-year increase of + 29.23%, of which Q1-Q4 was 2.44/7.69/11.01/552 billion yuan in a single quarter, a year-on-year increase of + 340.02% / + 30.15% / + 14.56% / – 9.84% respectively. The company plans to distribute a cash dividend of 17.5 yuan (including tax) to all shareholders for every 10 shares.
The scale of wardrobe (customized for the whole house) exceeded 10 billion, and the basic sector of cabinet was stable, with a beautiful growth rate. In the 21st year, the income of the company’s wardrobe and accessories was 10.172 billion yuan, a year-on-year increase of + 49.53%. We expect the matching rate of the wardrobe to be about 20% in the whole year. The company takes the wardrobe as the starting point and extends to the customization of the whole room space to open up growth space. In terms of sector, it is upgraded from aldehyde free to net aldehyde to meet the environmental protection needs of consumers. Relying on its excellent product strength and supply chain integration ability, the company has built a whole customization mode, and comprehensively penetrated bag carrying, e-commerce, home decoration
Multiple channels such as packaging can effectively obtain fragmented traffic. As the core product of Oppein Home Group Inc(603833) the cabinet, the competitive advantage has been continuously consolidated. In the 21st year, the revenue has reached 7.529 billion yuan, a year-on-year increase of + 24.22%. In the whole year, there are more than 1300 new stores and new decoration stores, more than 3000 retail dealer cooperative decoration enterprises, and more than 600 innovative integrated kitchen business models.
Wooden doors / sanitary ware are growing rapidly, and opelli brand ranks among the first echelon of the industry. In the 21st year, the revenue of oppeni wooden door was 1.236 billion yuan, a year-on-year increase of + 60.36%. The product strength was gradually improved, the cooperation potential of home decoration channels was deeply explored, the proportion of high-quality dealers was significantly increased, and the customer order value and order receiving volume were effectively improved through model innovation. In 21 years, the income of sanitary ware category was 989 million yuan, with a year-on-year increase of + 33.72%, and the products successfully entered the decoration and engineering channels. The oberli brand was repositioned in 21 years, with an annual revenue of 1.426 billion yuan, a year-on-year increase of + 65.03%. After the adjustment, the target customers are more focused, the price band is gradually widened, and the category is expanded from cabinets and wardrobe to the full category and full room customization of “cabinet, clothing, wooden bathroom + electrical appliances + home accessories”, covering a wider range of needs.
The volume of packaged large home appliances increased rapidly, and the performance of receiving orders increased by more than 90% year-on-year. In terms of channels, the distribution / direct sales / bulk channels achieved revenue of 15.68/587/3.673 billion yuan respectively in 21 years, with a year-on-year increase of + 40.2% / + 47.33% / + 36.92% respectively. By the end of the third quarter of the year, the packaged home had opened nearly 700 stores, with agents covering nearly 600 cities. In the whole year of 21, the number of orders received increased by 90% year-on-year. At the same time, the “starhomes Star home” was launched. The two brands laid out the whole customized track at the same time, accelerated the acquisition of market share, and further consolidated the first mover advantage in the packaged field. Bulk channels have developed steadily, and the company’s risk management is effective.
Large scale centralized purchase + refined management alleviate the cost pressure, give priority to profit dealers and consumers, continue to promote refined management, and achieve results in cost control. In 21 years, the company’s comprehensive gross profit margin was 31.6%, year-on-year – 3.4pct, and the single Q4 gross profit margin was 29%, year-on-year – 4pct. In terms of channels, the gross profit margin of distribution channels / bulk channels in 21 years was 30.3% / 30.8% respectively, with a year-on-year decrease of 3.8pct/1.9pct respectively. In terms of products, the gross profit margin of wardrobe / kitchen cabinet was 32.2% / 34.4% respectively, with a year-on-year decrease of 4.2pct/1.82pct respectively. Facing the pressure of rising raw material prices, on the one hand, the company increases the purchase volume through large-scale procurement advantages and capital advantages to obtain greater bargaining space and ensure the relative stability of raw material prices. On the other hand, the company strengthens internal control, improves material utilization rate, reduces rework rate and improves inventory turnover through fine management, so as to alleviate the pressure on the cost side to a certain extent. The material cost of cabinets / wardrobes and accessories in the whole year was + 31.69% / + 67.59% respectively year-on-year. In July, the company raised the price of self-made products by 1%. We believe that the cost pressure is partly alleviated through large-scale centralized purchase and refined management, and partly borne by the internal digestion of the company, giving priority to distributors and end consumers. The ratio of sales / management / R & D / financial expenses in 21 years was 6.8% / 5.5% / 4.4% / – 0.6% respectively, with a year-on-year ratio of – 1.0 / – 1.0 / – 0.3 / – 0.3pct respectively, and the net profit attributable to the parent company was 13.0%, with a year-on-year ratio of – 1.0pct. We believe that the company has achieved remarkable cost side control effect in the past 21 years, and its operation is still stable.
Profit forecast and rating: the company started the overall kitchen cabinet business. After years of continuous expansion of products, it has become a comprehensive customized home provider integrating kitchen cabinets, wardrobe, bathroom and customized wooden doors. The volume of packaged large home is accelerated, and it is optimistic about the improvement of industry penetration and leading market share in the long-term dimension. It is estimated that the net profit attributable to the parent company in 22-24 years is RMB 3.099/35.76/4.238 billion, with a year-on-year increase of + 16.25% / + 15.39% / + 18.52%, and the corresponding PE is 24x / 21x / 17x respectively, maintaining the “buy” rating.
Risk warning: the dividend scheme still needs to be approved by the general meeting of shareholders; The delivery of the property is less than expected; Price fluctuation risk of raw materials; The promotion of Omni channel layout is less than expected; Intensified industry competition, etc.
