\u3000\u30 Chongqing Baiya Sanitary Products Co.Ltd(003006) 16 Guangzhou Shangpin Home Collection Co.Ltd(300616) )
Event: the company announced in its annual report that in 2021, it achieved revenue of 7.31 billion yuan, a year-on-year increase of 12.22%, net profit attributable to the parent company of 89.71 million yuan, a year-on-year decrease of 11.54%, and net profit not attributable to the parent company of 42.47 million yuan, a year-on-year increase of 6.23%. It is proposed to send 1.50 yuan (including tax) for 10 years. The company announced in the first quarterly report that 22q1 achieved a revenue of 1.086 billion yuan, a year-on-year decrease of 22.87%, the net profit attributable to the parent was – 100 million yuan, and the net profit not attributable to the parent was – 110 million yuan, which turned into a loss year-on-year.
Comments:
The company’s single quarter revenue of 21q4 / 22q1 was + 0.67% / – 22.87% year-on-year respectively, and the packaged business continued to increase. In terms of products, in 21 years, customized furniture products / supporting household products / software and technical services / o2o drainage services / packaged business achieved operating revenue of 5.144 billion yuan (+ 8.45%) / 1.035 billion yuan (+ 12.19%) / 29 million yuan (- 3.29%) / 70 million yuan (- 23.68%) / 789 million yuan (+ 46.14%), respectively, of which business grew rapidly relying on BIM packaged mode. From the perspective of different channels, the company has continued to make efforts in the whole decoration. In the past 21 years, the direct sales / franchise / whole decoration have achieved an operating revenue of 1.897 billion yuan (+ 0.99%) / 3.779 billion yuan (+ 9.26%) / 1.109 billion yuan (+ 53.69%). Stores: at the end of the year 21, the number of Direct stores of the company was 90, and the number of franchise stores in self operated cities was 289 (including stores under decoration), a total net increase of 56 compared with the end of the year 20; The number of franchise stores is 2236 (including decoration stores); Among them, the first offline pilot Xi’an Jingdong super store in cooperation with Jingdong will be opened in September 2021. The company’s Direct stores will also successively introduce Jingdong elements to continue to build a high-quality platform for Wuxi Online Offline Communication Information Technology Co.Ltd(300959) shopping and home experience. In terms of marketing, the company broke through the live delivery mode. In 2021, the Gmv of MCN delivered goods reached 230 million yuan, with more than 300 open cooperation brands, and continued to build an open platform for content e-commerce.
The profit is expected to remain at a low level for 22 years. In terms of gross profit margin, the gross profit margin of the company in 2021 / 22q1 was 33.17% (- 0.06pct) / 31.64% (- 3.84pct) respectively. The decrease of gross profit margin was mainly due to the increase of cost. In terms of expenses, the rates of sales / management / R & D expenses in 2021 were 24.13% (- 0.15pct) / 7.61% (+ 0.12pct) / 2.54% (+ 0.14pct) respectively, and the annual expense rate remained stable; 22q1 single quarter sales / management / R & D expense rates were 30.79% (+ 5.67pct) / 11.98% (+ 1.73pct) / 4.05% (+ 0.98pct), and the single quarter marketing investment increased. In terms of profit, in 2021 / 22q1, the net profit attributable to the parent company was 1.23% (- 0.33pct) / – 9.23% (- 9.79pct). The large decline in profit was mainly due to the continuous resource investment in the early stage of strategic transformation, and the non recurring profit and loss was mainly the profit and loss of entrusted management investment assets. In terms of cash flow, the net operating cash flow in 2021 reached 539 million yuan, with a year-on-year increase of 308.08%, mainly due to the increase of sales revenue during the period, the gradual implementation of bank acceptance bill settlement in the second half of the year, and the adjustment of the lease fee paid to other cash flow expenses related to financing activities due to the impact of the new lease standards. In terms of operation, the company consolidated the foundation management and optimized the operation efficiency. In 2021, the company’s inventory turnover increased by 0.39 times to 5.34 times year-on-year.
Profit forecast: driven by marketing and offline direct sales and direct franchise stores, the company’s packaging business maintains a rapid growth momentum. At present, the company is in the throes of transformation. Looking forward to 2022, the company will continue to make efforts to provide integrated services such as whole house packaging, reduce costs and increase efficiency, and focus on profit growth. It is estimated that the net profit attributable to the parent company from 2022 to 2023 will be RMB 338 million, RMB 370 million and RMB 405 million respectively. At present (2022 / 4 / 27), the corresponding share price of PE in 2022 is 14.6x.
Risk factors: real estate policy risk, industry competition risk, raw material price fluctuation risk.
