\u3000\u3 Shengda Resources Co.Ltd(000603) 801 Zbom Home Collection Co.Ltd(603801) )
Event overview
Zbom Home Collection Co.Ltd(603801) release the annual report of 2021 and the first quarter report of 2022:
In 2021, the company realized an operating 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%; The net profit attributable to the parent company after deducting non profits was 460 million yuan, a year-on-year increase of + 28.25%. Quarter by quarter, the operating revenue of Q4 in a single quarter was 1.831 billion yuan, a year-on-year increase of + 24.69%; The net profit attributable to the parent company was 205 million yuan, a year-on-year increase of + 3.92%; The net profit attributable to the parent company after deduction was 170 million yuan, a year-on-year increase of - 1.63%. In Q4, the company's revenue reached a new high in the single quarter since listing, and the growth rate maintained a high level. The profit side was affected by the cost pressure caused by the rise of raw material prices, and the growth rate was lower than the revenue growth. In terms of cash flow, the net cash flow from operating activities in 2021 was 496 million yuan, a year-on-year increase of - 23.58%, of which the net cash flow from Q4 operating activities was 162 million yuan, a year-on-year decrease of - 58.39%, mainly due to the company's appropriate increase in raw material inventory, resulting in a significant increase in the purchase amount of raw materials compared with the same period of the previous year. In 2022q1, the company realized an operating 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%; The net profit attributable to the parent company after deduction was 40 million yuan, a year-on-year increase of - 15.97%, and the profit growth rate was lower than the income growth. In terms of cash flow, the net cash flow from operating activities of 2022q1 company was -293 million yuan, a year-on-year increase of - 47.99%, mainly due to the payment of accrued expenses, remuneration and taxes. In addition, the company plans to distribute a cash dividend of 6.0 yuan (including tax) for every 10 shares.
Analysis and judgment:
Sub products: kitchen cabinets grew steadily, while wardrobe and wooden doors grew significantly.
In 2021, the company's overall kitchen cabinet, customized wardrobe and wooden door business achieved revenue of 2.934 billion yuan, 1.760 billion yuan and 170 million yuan respectively, with a year-on-year increase of + 17.43%, + 54.25% and + 291.53% respectively. The main businesses maintained good growth. Among them, the kitchen cabinet business grew steadily, the growth rate of wardrobe and wooden door was obvious, the wardrobe business accelerated the layout of stores in blank cities across the country, and the wooden door business focused on developing business channels of fine decoration engineering, and the contract amount of signed batch projects exceeded 100 million yuan, Wardrobe and wooden door business has gradually become a new growth point of the company's performance contribution.
In 2022q1, the company's overall kitchen cabinet, customized wardrobe and wooden door business achieved revenue of RMB 365 million, RMB 330 million and RMB 22 million respectively, with a year-on-year increase of + 1.34%, + 19.74% and + 183.12% respectively. 2022 is the first year for the company to set a three-year target of RMB 10 billion. In Q1, under the influence of the epidemic, the company's main businesses continued to grow. Among them, the kitchen cabinet business increased slightly compared with the same period, but the performance of wardrobe, wooden door and other businesses continued to be beautiful and the growth rate was significant. The company has opened multiple categories and shared multi-channel resources, enriched the customized household categories of the whole house, and the synergistic effects of kitchen cabinets, wardrobe, wooden doors, wallboards and so on have gradually appeared, with the smooth expansion of the whole category.
Sub channels: multi-channel development and steady retail channels.
In 2021, the sales of the company's distribution stores, Direct stores, bulk businesses and other businesses were RMB 2830 million, RMB 322 million, RMB 1651 million and RMB 60 million respectively, with a year-on-year increase of + 26.90%, + 39.01%, + 40.59% and + 29.75% respectively, and the main channels increased steadily. The company develops in multiple channels, including: 1) offline channels: strengthen the sinking market layout of kitchen cabinets, improve the national blank market layout of wardrobe, and increase the integration points of kitchen cabinets, wardrobe, wooden doors and finished products. In 2021, the company has a net increase of 510 stores to 3742, including 1691, 1619, 399 and 33 overall kitchen cabinets (distribution stores), customized wardrobe (distribution stores), wooden doors (distribution stores) and direct stores respectively, The annual net increase was 115, 195, 196 and 5 respectively; 2) New online retail channels: focus on the Internet platform, improve the franchisee's overall marketing, customer acquisition and service transformation ability, and seize the opportunity in time at the stage of business development affected by the epidemic; 3) Bulk channels: vigorously expand high-quality strategic cooperative real estate customers, strengthen accounts receivable management, further improve risk control system, and stabilize the orderly development of engineering business; 4) Overseas business channels: strive to develop international supply resources, keep overseas order supply and continue to build brand influence. According to the company's annual report, the overseas business revenue accounted for 1.2% in 2021, and the revenue contribution is low at present, which is still in the exploratory stage.
The sales of distribution stores, Direct stores, bulk businesses and other businesses of 2022q1 company were 499 million yuan, 74 million yuan, 128 million yuan and 57 million yuan respectively, with a year-on-year increase of + 11.55%, + 25.87%, - 1.54% and + 24.64% respectively. Except for the slight decline in bulk businesses, other channels of the company performed well. Among them: 1) offline channels: 2022q1 company had a net increase of 186 stores to 3928, including overall kitchen cabinets (distribution stores), customized wardrobe (distribution stores) Wooden doors (distribution stores) and direct stores were 1685, 1639, 571 and 33 respectively, with a net increase of - 6, 20, 172 and 0 respectively. The wardrobe and wooden door businesses continued to open, and the kitchen cabinet business stores decreased; 2) Bulk business: the bulk business of the company has declined slightly compared with the same period. We expect that it is mainly affected by the business cycle and the company's strengthening of risk control over bulk business.
Profit side: the profitability declined, and the expense rate increased slightly during Q1.
In 2021, the gross profit margin and net profit margin of the company were 36.24% and 9.81% respectively, with a year-on-year ratio of -1.83pct and -0.49pct respectively. Among them, the gross profit margin and net profit margin in Q4 were 36.05% and 11.22% respectively, with a year-on-year ratio of -2.32pct and -2.24pct respectively. The gross profit margin and net profit margin of 2022q1 company were 35.08% and 6.76% respectively, with a year-on-year increase of -1.39pct and -0.65pct respectively. The profitability declined, which was mainly affected by the rise of raw material prices. In terms of business, the gross profit margin of the company's overall kitchen cabinet, customized wardrobe and wooden door business in 2021 was 40.50%, 34.43% and 13.04% respectively, with a year-on-year increase of -1.34pct, + 1.03pct and -2.94pct respectively. Among them, the scale effect of wardrobe business was brought into play, the profitability was still climbing, and the gross profit margin was upward; By channel, in 2021, the gross profit margins of distribution stores, Direct stores and bulk businesses were 34.33%, 65.80% and 38.49% respectively, with a year-on-year decrease of -1.50pct, + 2.79pct and -3.05pct respectively.
In terms of period expense rate, the company's period expense rate in 2021 was 24.49%, with a year-on-year increase of + 1.76pct, of which the sales expense rate, management expense rate, R & D expense rate and financial expense rate were 14.66%, 4.50%, 5.46% and - 0.14% respectively, with a year-on-year increase of + 0.27pct, + 0.86pct, + 0.42pct and + 0.22pct respectively. In Q4, the company's expense rate during the single quarter was 22.49%, with a year-on-year decrease of -1.07pct, of which the sales expense rate, management expense rate, R & D expense rate and financial expense rate were 15.01%, 3.70%, 3.63% and 0.15% respectively, with a year-on-year decrease of + 1.40pct, - 0.38pct, - 2.16pct and + 0.07pct. During 2022q1, the company's expense rate was 30.92%, with a year-on-year increase of + 1.26pct, of which the sales expense rate, management expense rate, R & D expense rate and financial expense rate were 16.34%, 7.73%, 6.79% and 0.06% respectively, with a year-on-year increase of + 1.85pct, + 0.26pct, -1.48pct and + 0.62pct.
Investment advice
Continue to be optimistic about the rapid development of the company's bulk business, the steady growth of retail channels and the optimization of the customer structure of bulk business. Considering that the performance of the revenue side in 2021 exceeded our expectations, combined with the short-term epidemic and the impact of high raw material prices, the previous profit forecast was adjusted. The company's revenue in 20222023 was adjusted from 58.59 and 70.13 to 6.295 and 7.863 billion yuan respectively; Considering the impact of high raw material prices, EPS will be adjusted from 2.02 and 2.45 to 1.88 and 2.30 yuan respectively from 2022 to 2023. It is estimated that the company's revenue and EPS will be 9.698 billion yuan and 2.80 yuan respectively in 2024. According to the closing price of 22.11 yuan / share on April 26, 2022, the corresponding PE will be 12, 10 and 8 times respectively, maintaining the "buy" rating.
Risk tips
The completion data is less than expected; Downstream demand is lower than expected; The risk of intensified industry competition; Risk of sharp rise in raw material prices; Short term epidemic impact.
