\u3000\u3 Shengda Resources Co.Ltd(000603) 008 Xlinmen Furniture Co.Ltd(603008) )
Event: the company released the first quarterly report of 2022. In 2022q1, the operating revenue was 1.405 billion yuan, a year-on-year increase of + 12.35%; The net profit attributable to the parent company was 54 million yuan, a year-on-year increase of - 36.18%, and the net profit attributable to the parent company after deduction of non-profit was 49 million yuan, a year-on-year increase of + 12.85%.
Comments:
Under the disturbance of the epidemic, income still increased, and the overall performance was in line with expectations. In Q1 of 2022, the company's revenue side still achieved growth under the situation that many places in the country were disturbed by the epidemic situation and strengthened sealing control, resulting in a significant reduction in offline passenger flow and the obstruction of factory goods receiving and dispatching. In terms of splitting, Q1's independent brand retail business / engineering business / OEM business contributed RMB 918 million / 0.39 million / 448 million respectively in 2022, with a year-on-year increase of + 20% / - 42% / + 8% respectively. In the independent brand retail business, offline / online sales revenue reached 694 / 223 million yuan respectively, with a year-on-year increase of + 16% / + 31% respectively. The year-on-year decline in the growth rate of net profit attributable to the parent company in Q1 was mainly due to the high profit base in the same period last year due to the large amount of non recurring income in 2021q1. Excluding the impact of non recurring profit and loss, the profit side of the company still achieved double-digit growth.
Strengthen the talent reserve, increase the management fee rate, and basically maintain the stability of the overall profitability. In 2022q1, the gross profit margin of the company increased from -0.2pcpts to 34.26% year-on-year. If the impact of the new standard freight is excluded, the actual gross profit margin of the company increased by 3.0pcpts year-on-year. Affected by the company's increased talent introduction, the management expense rate in 2022q1 increased from + 1.56 pcpts to 9.21% year-on-year, resulting in a year-on-year increase in the overall period expense rate from + 0.58 pcpts to 30.48%. Under the comprehensive influence, the company's net profit margin increased from -3.46 pcpts to 4.33% year-on-year, deducting non net profit margin from + 0.02 pcpts to 3.50% year-on-year, and the company's profitability remained basically stable.
The channel side has been steadily developed, providing dealers with account period support and short-term pressure on cash flow. By the end of the first quarter of 2022, the company's Xlinmen Furniture Co.Ltd(603008) / Ximian / M & D (including xiatu) stores had increased by 69 / 23 / 2 to 2906 / 1085 / 598 respectively compared with the beginning of the year The rapid expansion of Xlinmen Furniture Co.Ltd(603008) and Ximian stores has driven the steady growth of mattress and soft bed product revenue. Q1 mattress / soft bed and its supporting products have achieved a revenue of 746 / 427 million yuan respectively, with a year-on-year increase of + 21% / + 16% respectively. As M & D's high-end stores are mostly located in first tier cities such as Guangzhou and Shenzhen, the impact of this round of epidemic is more serious, resulting in the company's Q1 sofa category revenue of - 2% to 193 million yuan year-on-year. At the same time, the company took the initiative to help dealers alleviate the financial pressure and give some dealers seriously affected by the epidemic a certain account period support, resulting in a pressure on cash flow. In 2022, the net operating cash flow of Q1 company was -551 million yuan.
Investment suggestion: it is expected that the short-term disturbance of the epidemic will not change the annual growth trend. 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 722 / 926 / 1203 million respectively, corresponding to the current market value PE of 13 / 10 / 8x 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.
