\u3000\u30 Shenzhen Quanxinhao Co.Ltd(000007) 85 Easyhome New Retail Group Corporation Limited(000785) )
Event: the company achieved an operating revenue of 13.071 billion yuan in 2021, with a year-on-year increase of 44.88%; The net profit attributable to the parent company was 2.325 billion yuan, a year-on-year increase of 71.36%; The net profit deducted from non parent company was 2.229 billion yuan, with a year-on-year increase of 75.72%; In 2021q4, the operating revenue was RMB 3.299 billion in a single quarter, with a year-on-year increase of 18.91%, the net profit attributable to the parent was RMB 606 million, with a year-on-year increase of 37.16%, and the net profit not attributable to the parent was RMB 520 million, with a year-on-year increase of 31.78%.
In the past 21 years, the performance has been beautiful, the traditional operation has basically increased steadily, and the shopping center business has created a new growth curve. In the 21st year, the company’s strategy transformation was “stores focus on traffic, businesses focus on products and services”. The path of enabling manufacturers with traffic acquisition + transformation has been run through, and the annual Gmv reached 104 billion yuan. In terms of business, leasing management achieved a revenue of 7.415 billion yuan in 21 years, a year-on-year increase of 22.70%; The revenue of commodity sales business was 3.68 billion yuan, a year-on-year increase of 88.13%; Franchise management achieved revenue of 791 million yuan in 21 years, with a year-on-year increase of 39.58%; Decoration services achieved a revenue of 394 million yuan, a year-on-year increase of 55.04%. By the end of the 21st century, the company had 95 Direct stores, 326 franchise stores, 1 shopping center, 7 department stores and 137 supermarkets. In the 21st year, the company added 162 national chain brands and 572 regional chain brands.
Actively promote digital transformation and lead new home retail. The company has significant advantages in Wuxi Online Offline Communication Information Technology Co.Ltd(300959) integration. It builds a new retail core competitiveness through digital transformation and upgrading, that is, after the digitization of brands and goods, consumers’ Wuxi Online Offline Communication Information Technology Co.Ltd(300959) shopping scene needs are met and operation index data are accurately managed. The business of the same city station was channeled through the form of creating “popular goods” + live broadcast, and the customer acquisition rate increased significantly. 758000 customers were obtained online, leading to a transaction of 13.3 billion yuan, a year-on-year increase of 57%. 234 stores carried out 29000 live broadcasts, attracting 209000 customers and leading a transaction of 3.35 billion yuan.
The platform focuses on five home service nodes to realize the closed-loop of digital consumption. 1) “Every flat and every house designer” has the conditions for commercialization, with more than 1.1 million Chinese designers, more than 8.9 million overseas users, and more than 6.8 million foreign commodity model libraries. 2) “Dongwo app” was launched in June of 21, with 2.17 million registered users, 10000 stores, 60 stores in 17 cities, 750000 daily users and Gmv exceeding 100 million yuan. 3) The “smart home decoration platform” achieved sales of 757 million yuan, a year-on-year increase of 57.2%. The digital integrated system helped greatly improve the operation efficiency. 4) “Zhihuijia” achieved sales of 1.728 billion yuan. The year-on-year growth was 321.69%, and the multi brand + multi-channel strategy significantly increased the scale of the total agency business. 5) The “smart logistics” platform Tianjin Baodi smart Logistics Park Phase I was officially put into operation, superimposed with digital combined order, stowage and information automatic circulation system, with outstanding core ability of intelligent delivery and assembly.
Investment advice and profit forecast: we estimate that the company’s total operating revenue from 2022 to 2024 will be 15.043 billion yuan, 17.244 billion yuan and 19.892 billion yuan respectively, with a year-on-year increase of 15.1%, 14.6% and 15.4%, and the net profit attributable to the parent company will be 2.808 billion yuan, 3.200 billion yuan and 3.655 billion yuan respectively, with a year-on-year increase of 20.8%, 14.0% and 14.2%. The PE from 2022 to 2024 will be 11.21x, 9.83x and 8.61x. Considering that the company continues to explore new categories and brands offline, and promote the integration of multiple formats of large home and large consumption; The five major tracks build a full chain digital service platform, accelerate the digital transformation, develop new retail formats of home stores, and maintain the “buy” rating.
Risk tip: China’s covid-19 epidemic has been repeated, the real estate policy has been tightened, and the development of stores is less than expected.
