\u3000\u3 Shengda Resources Co.Ltd(000603) 801 Zbom Home Collection Co.Ltd(603801) )
The company released the annual report of 2021 and the first quarterly report of 2022: 1) in 21 years: the revenue was 5.153 billion yuan (+ 34.17%), the net profit attributable to the parent was 506 million yuan (+ 27.84%), and the net profit not attributable to the parent was 460 million yuan (+ 28.25%); Single Q4 achieved revenue of 1.831 billion yuan (+ 24.69%), net profit attributable to parent company of 205 million yuan (+ 3.92%), net profit not attributable to parent company of 170 million yuan (- 1.63%) deducted. 2) 22q1: the income is 759 million yuan (+ 11.2%), the net profit attributable to the parent company is 51 million yuan (+ 1.4%), and the net profit not attributable to the parent company is 40 million yuan (- 16.0%). Under the influence of the epidemic, the company achieved steady growth and its performance met expectations.
Retail: the growth is diversified, and the development of large home furnishings is gradually mature. The front-end of the company promotes franchisee market sinking and leading, category integration, and the back-end promotes digital upgrading. In 21 years, the retail channel achieved revenue of 3.15 billion yuan (+ 28.0%), gross profit margin of 37.5% (- 0.9pct), of which 21q4 achieved revenue of 980 million yuan (+ 16.8%), gross profit margin of 38.1% (- 1.5pct). In 21 years, it covered 1300 counties and cities and added 510 stores. 22q1 retail channel achieved revenue of 570 million yuan (+ 13.2%), gross profit margin of 37.6% (+ 0.3pct), and 186 new stores; It is estimated that the number of stores is expected to maintain an increase of more than 400 in 22 years.
1) cabinet: in 21 years, the revenue is 2.93 billion yuan (+ 17.4%), and the gross profit margin is 40.5% (- 1.3pct), of which 21q4 revenue is 1.06 billion yuan (+ 8.3%), and the gross profit margin is 41.7% (+ 1.4pct); The revenue of Tier-1 and tier-4 companies increased steadily by 3 PCT and 5 pct, accounting for + 1.0% and + 1.0% respectively; By the end of the 21st century, there were 1691 cabinet stores (plus 115 in the whole year). 22q1 achieved revenue of 370 million yuan (+ 1.3%), gross profit margin of 43.0% (+ 1.4pct), and 1685 kitchen cabinet stores (q1-6 alone). It is expected to continue steady growth in 22 years.
2) wardrobe: in 21 years, the revenue is 1.76 billion yuan (+ 54.3%), and the gross profit margin is 34.4% (+ 1.0pct), of which the revenue of 21q4 is 570 million yuan (+ 37.1%), and the gross profit margin is 32.6% (- 4.2pct); The high increase in revenue is mainly due to the company's acceleration of the layout of the national blank market. The revenue of Tier-1, tier-2, tier-3, tier-4 and tier-5 and tier-6 cities selling wardrobe accounts for 20%, 30% and 50% respectively (- 5.5pct, + 1.7pct and + 3.8pct). At the same time, the coordination of categories is strengthened, and the sales model of large household is gradually mature; By the end of the 21st century, there were 1619 wardrobe stores (plus 195 in the whole year). 22q1 achieved a revenue of 330 million yuan (+ 19.7%), a gross profit margin of 34.0% (+ 0.7pct), and 1639 wardrobe stores (single Q1 + 20). It is expected to continue its high growth in 22 years.
3) wooden doors: in 21 years, the revenue was 170 million yuan (+ 291.5%), and the gross profit margin was 13.0% (- 2.9pct), of which the revenue of 21q4 was 90 million yuan (+ 355.2%), and the gross profit margin was 14.4% (- 7.4pct). The high increase in revenue was mainly due to the rapid increase in the sampling rate of wooden doors in existing retail channels, and 13 real estate strategic contracts were signed in bulk channels, with a contract amount of more than 100 million yuan; By the end of the 21st century, there were 399 wooden stores (annual + 196, single Q4 + 77). 22q1 achieved a revenue of 20 million yuan (+ 183.1%), a gross profit margin of 8.0% (- 10.3pct), and 571 wooden stores (single Q1 + 172). It is expected to double the growth in 22 years under the low base.
We strictly controlled the risks of bulk commodities, achieved high-quality growth, and expanded the packaging rapidly. 1) Bulk: revenue of 1.65 billion yuan (+ 40.6%) and gross profit margin of 38.5% (- 3.1pct) in 21 years, of which 21q4 achieved revenue of 720 million yuan (+ 26.2%) and gross profit margin of 37.4% (- 2.0pct). In the past 21 years, the real estate cash flow was under pressure, the competition between high-quality real estate enterprises intensified, and the company contracted risks. Focusing on high-quality real estate enterprises, the company quickly coordinated the supply chain through amoeba business philosophy to ensure the efficient delivery of projects. By the end of 2021, the proportion of top 100 real estate customers had reached 34%. 22q1 achieved a revenue of 130 million yuan (- 1.5%) and a gross profit margin of 40.9% (- 1.1pct). The growth is expected to slow down in 22 years. 2) Assembly: the company reorganizes the assembly team, reconstructs the product system, develops systematic products in line with the style of assembly enterprises, and expands national and local head assembly enterprises. It is expected to grow rapidly in 22 years.
The profit is slightly under pressure and the expense control is excellent. 1) 2021: gross profit margin is 36.24% (- 1.8pct), net profit margin is 9.81% (- 0.5pct). In terms of expense performance, during 2021, the expense rate is 24.49% (- 1.8pct), sales expense rate is 14.66% (- 0.3pct), management expense rate is 4.50% (- 0.9pct), financial expense rate is - 0.14% (- 0.2pct), and R & D expense rate is 5.46% (- 0.4pct). In the past 21 years, the raw materials increased, the gross profit margin of bulk commodities decreased and the product structure changed (the gross profit margin of wardrobe / wooden door was lower than that of cabinet, but the growth rate was leading), but the company continued to promote cost reduction and efficiency increase, the expense rate decreased as a whole, and the profitability was relatively stable. 2) 22q1: gross profit margin is 35.08% (- 1.4pct), net profit attributable to parent company is 6.76% (- 0.7pct), period expense rate is 30.92% (+ 1.3pct), among which sales expense rate is 16.34% (+ 1.9pct), management expense rate is 7.73% (+ 0.3pct), financial expense rate is 0.06% (+ 0.6pct), and R & D expense rate is 6.79% (- 1.5pct). Looking forward to 22 years, we expect the company to continue to promote cost side optimization, accelerate category integration, and gradually reflect the scale effect of wardrobe. The repricing of new orders in bulk channels and the improvement of profit margin are expected to drive the improvement of overall profitability.
The cash flow is slightly under pressure and the operating efficiency is improved. 1) In 2021, the net operating cash flow was 496 million yuan (- 23.58%), and the single Q4 was 162 million yuan (- 58.39%), mainly due to the increase of raw material inventory in response to the epidemic and the rise of raw materials. In terms of operating efficiency, as of 2021, accounts receivable and bills had 256 million yuan (- 21.09%), turnover days were 9.22 days (- 12.09 days), inventories had 388 million yuan (+ 17.93%), and turnover days were 39.25 days (- 1.93 days). 2) 22q1: the net operating cash flow is -293 million yuan, the turnover days of accounts receivable are 19.36 days (+ 6.26 days), and the turnover days of inventory are 73.32 days (- 3.83 days).
Investment suggestion: multi category & multi-channel construction is smooth, with great efforts to open up growth space for home furnishings. Share repurchase is used for equity incentive to show development confidence. It is expected that the profit in 202224 will be 610, 740 and 880 million yuan, an increase of 20.9%, 21.6% and 18.5%, corresponding to PE of 11.3x, 9.3x and 7.8x, maintaining the "buy" rating.
Risk tip: repeated outbreaks, unexpected decline in real estate, and significantly intensified competition.
