\u3000\u3 Shengda Resources Co.Ltd(000603) 801 Zbom Home Collection Co.Ltd(603801) )
Events
The company issued the annual report of 2021 and the quarterly report of 2022. In 2021, the company achieved a revenue of 5.153 billion yuan, a year-on-year increase of 34.17%; The net profit attributable to the parent company was 506 million yuan, a year-on-year increase of 27.84%, and the net profit deducted was 460 million yuan, a year-on-year increase of 28.25%. The company plans to distribute a cash dividend of 6 yuan (including tax) for every 10 shares. In the first quarter of 2022, the company achieved a revenue of 759 million yuan, a year-on-year increase of 11.17%; The net profit attributable to the parent company was 51 million yuan, a year-on-year increase of 1.37%, and the deduction of non net profit was 40 million yuan, a year-on-year decrease of 15.97%.
Key investment points
The revenue growth rate increased month on month in 21 years, and the deduction of non net profit decreased due to the provision for asset impairment in 21q4. On the revenue side, in 2021, the company achieved a revenue of 5.153 billion yuan, a year-on-year increase of 34.17%. In terms of quarters, 21q1 / Q2 / Q3 / Q4 achieved a revenue of 6.83/12.26/14.141831 billion yuan, a year-on-year increase of 109.09% / 36.49% / 23.18% / 24.69%. 22q1, the company achieved a revenue of 759 million yuan, a year-on-year increase of 11.17%. Affected by the epidemic in China, the growth rate fell month on month in the first quarter of this year. On the net profit side, in 2021, the company realized a net profit attributable to the parent company of 506 million yuan, with a year-on-year increase of 27.84%, and a net profit deducted of 460 million yuan, with a year-on-year increase of 28.25%. By quarter, 21q1 / Q2 / Q3 / Q4 respectively realized a net profit deducted of 0.47/0.98/1.44/170 million yuan, with a year-on-year increase of 204.58% / 10.91% / 1.20% / – 1.63%. The decline of 21q4 net profit deducted was mainly due to the year-on-year increase of the company’s provision for asset impairment. 22q1, the net profit attributable to the parent company and net profit deducted from non-profit were 51 million yuan and 40 million yuan respectively, with a year-on-year increase of + 1.37% and – 15.97%. The growth rate of net profit attributable to the parent company was higher than that of net profit deducted from non-profit, mainly due to the significant year-on-year increase of government subsidies in the first quarter.
The wardrobe business has achieved rapid growth and enriched the matrix of finished furniture to meet the one-stop shopping needs of consumers. In terms of products, in 2021, 1) the company’s overall cabinet revenue was 2.934 billion yuan / + 17.4%, of which the volume was + 28.5%, the price was – 8.6%, and the revenue accounted for 56.9%; 22q1 cabinet revenue increased by 1.3% year-on-year; 2) In 2015, the company began to expand the wardrobe business and entered the field of whole house customization. In 2021, the customized wardrobe achieved a revenue of 1.76 billion yuan / + 54.2%, of which the volume was + 40.9%, the price was + 9.4%, and the revenue accounted for 34.2%. The second growth curve of the wardrobe business was well cultivated, and the 22q1 wardrobe business continued to achieve a steady growth of 19.7% year-on-year; 3) In 2021, the wooden door business achieved revenue of 170 million yuan / + 291.6%, of which volume + 282.1%, price + 2.5% and revenue accounting for 3.3%. The company focused on expanding the wooden door business of Engineering channels, signed 13 real estate strategic contracts and signed batch projects with a contract amount of more than 100 million yuan. In addition, the company expanded high-end brands such as Panasonic in Japan, oxo sanitary ware in Italy, R & G furniture in Italy and iris in Italy, covered different consumer groups, enriched the matrix of finished furniture, and added soft wall cloth and Weiyang space products to meet the one-stop consumption needs of users. In 2021, the gross profit margin of overall cabinet, customized wardrobe and wooden door was 40.5%, 34.4% and 13.0% respectively, with a year-on-year increase of – 1.3, + 1.0 and – 2.9pct. The gross profit margin of kitchen wood fell due to the rise of raw material prices, and the scale effect of wardrobe business led to the rise of its gross profit margin.
Retail channels continued to expand rapidly, and the profitability of Direct stores was improved. By channel, in 2021, 1) in terms of retail business, the dealer channel achieved a revenue of 2.83 billion yuan, an increase of 26.9% year-on-year, accounting for 55% of the revenue. Compared with the beginning of the period, the dealer stores increased by 506 to 3709 (including 115, 195, 196 to 1691, 1619 and 399 cabinets, wardrobe and wooden doors respectively). We estimate that the average single store pick-up volume of the company’s distribution channels increased by about 10% year-on-year; The revenue of direct sales channels reached 320 million yuan, a year-on-year increase of 39.0%, accounting for 6.3% of the revenue. The net increase of direct sales stores was 4 to 33 compared with the beginning of the period. It is estimated that the efficiency of direct sales stores of the company exceeded 9.7 million yuan / year, a year-on-year increase of 20% +. 22q1, the company’s distribution and direct channel revenue increased by 11.6% and 25.9% year-on-year, 186 distribution stores increased compared with the beginning of the period, and the direct stores were flat compared with the beginning of the period. 2) In terms of engineering business, the bulk channel business of the company operated steadily in 2021, with annual revenue of 1.65 billion yuan, a year-on-year increase of 40.6% and revenue accounting for 32%. 22q1, the revenue of bulk business decreased slightly by 1.5% year-on-year. In 2021, the gross profit margins of dealer channels, direct sales channels and bulk channels were 34.3%, 65.8% and 38.5% respectively, with a year-on-year increase of – 1.5, + 2.8 and – 3.1pct.
Expenses continued to be controlled and the net profit margin fluctuated steadily. In terms of profitability, in 2021, due to the impact of rising raw material prices, the company’s gross profit margin decreased by 1.8pct to 36.2% year-on-year, and 22q1 gross profit margin decreased by 1.4pct to 35.1% year-on-year. In terms of expense rate, the total expense rate of the company during 2021 decreased by 1.8pct to 24.5%, of which the sales / management / R & D / financial expense rate was 14.7% / 4.5% / 5.5% / – 0.1%, with a year-on-year increase of – 0.3 / – 0.9 / – 0.4 / – 0.2pct. Under the comprehensive impact, the net profit margin of the company’s sales in 2021 was 9.8%, a year-on-year decrease of 0.5pct, and the net profit margin of 22q1 decreased by 0.7pct to 7.4%. In terms of inventory, by the end of the year, the company’s inventory was 388 million yuan / + 17.93%, and the inventory turnover days were 39 days, a year-on-year decrease of 2 days. In terms of cash flow, the net cash flow from operating activities of the company in 2021 was 496 million yuan, a year-on-year decrease of 23.6%, which was due to the increase of raw material preparation of the company.
Investment suggestion: the company started with the kitchen cabinet business and entered the field of whole house customization in 2015. In 2021, the wardrobe business achieved beautiful growth, and the offline retail channels continued to expand rapidly. 22q1 maintained a net opening of stores under the disturbance of the Chinese epidemic. It is optimistic that the company will continue to improve its market share by relying on category integration and channel expansion. We predict that the company’s earnings per share from 2022 to 2024 will be 1.91 yuan, 2.30 yuan and 2.77 yuan respectively, corresponding to 12 times and 10 times of the company’s PE in 22 and 23 years respectively. For the first time, we give the suggestion of “increasing shareholding-a”.
Risk warning: the impact of the epidemic exceeded expectations, and the completion and sales data of commercial housing were less than expected; Industry competition intensifies; The shop opening progress is not as expected; Risk of sharp fluctuations in raw material prices.
