\u3000\u3 Shengda Resources Co.Ltd(000603) 801 Zbom Home Collection Co.Ltd(603801) )
On April 26, the company released the annual report of 2021 and the first quarterly report of 2022. In 2021, the revenue was 5.15 billion yuan, an increase of 34.2% and the net profit was 510 million yuan, an increase of 27.8% respectively; In 2022q1, the revenue was 760 million, an increase of 11.2% and the net profit was 50 million yuan, an increase of 1.4%. The revenue maintained a relatively high growth and the profit was under pressure. Maintain buy rating.
Key points supporting rating
Multi category channels drive rapid revenue growth. By product, the company's kitchen cabinet business revenue in 2021 was 2.93 billion yuan, an increase of 17.4% at the same time, with a relatively stable growth rate. The steady growth of kitchen cabinet business is mainly due to the continuous sinking of the market and the opening of stores. At the end of 2021, there were 1691 stores, an increase of 115 at the same time. At the same time, the high growth of bulk business has driven the rapid volume of kitchen cabinets. The income of wardrobe business was 1.76 billion yuan, an increase of 54.3%. The wardrobe business maintained a high growth. The company maintained a high-speed opening of stores and filled the blank area. At the end of the year, there were 1619 stores, an increase of 195 at the same time. Strengthen the promotion and customization of each category of wardrobe, and enhance the brand acceptance of the whole company at the same time. The revenue of wooden doors was 170 million yuan, an increase of 291.5%. By channel, the retail channel revenue was 3.15 billion yuan, an increase of 33.7%. The revenue from bulk channels was 1.65 billion yuan, an increase of 40.5% at the same time, maintaining a high growth against the trend. While rapidly developing bulk business, the company further improved its risk control system and expanded high-quality customers. By the end of 2021, the top 100 real estate customers accounted for 34%. The revenue of multi category channels increased significantly.
Q1 revenue growth slowed. In the first quarter, the retail revenue was 570 million, an increase of 13.2% at the same time. Due to the repeated impact of the epidemic, the retail growth slowed down. The revenue from bulk business was 130 million, down 1.5% at the same time, mainly because the company strengthened risk control and continued to optimize the structure of bulk business.
The cost is continuously optimized and the order is in good condition. The gross profit margin in 2021 was 36.2%, down 1.8pct, mainly due to the rise in the price of raw materials. At present, the improvement of profitability brought by the scale effect of wardrobe business is still climbing, which is expected to drive the steady growth of gross profit margin. During the period, the expense rate decreased, and the sales / management expense rate decreased by 0.3/0.9pct, indicating the company's better ability to control expenses. The profit margin of 2021q1 was 6.8%, down 0.6pct at the same time, mainly due to the rise in the price of raw materials, the income was affected by the epidemic, and the effect of cost investment was less than expected. By the end of 2022q1, the company's accounts payable was 520 million, an increase of 59.4% at the same time, mainly because the company expanded its business scale and maintained a good relationship with suppliers. Contract liabilities were 410 million yuan, an increase of 21.9% at the same time, and orders were in good condition.
Continue to develop product channels and look forward to the future development prospects of the company. While strengthening marketing, the company insists on improving the product power, and further improves the brand acceptance through the two wheel drive of marketing and products. While maintaining the rapid development of traditional stores, the company makes great efforts in the decoration business, and is expected to enjoy the development dividend of the decoration channel through strengthening the strength of the supply chain. We are optimistic that the company will continue to strengthen its retail strength and expand its market share.
Valuation
Under the current share capital, the earnings per share from 2022 to 2024 are expected to be 1.9/2.4/2.8 yuan respectively; The P / E ratio was 10 / 8 / 7 times respectively, maintaining the buy rating.
Main risks of rating
Industry competition intensifies, the expansion of new products does not meet expectations, and the price of raw materials fluctuates.
