\u3000\u3 Shengda Resources Co.Ltd(000603) 801 Zbom Home Collection Co.Ltd(603801) )
Event:
The company released the annual report of 2021: the annual revenue of 2021 was 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 deducted from non parent company was 460 million yuan, with a year-on-year increase of 28.25%. Among them, the revenue of Q4 in 2021 was 1.831 billion yuan in a single quarter, with 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 non net profit deducted was 170 million yuan, a year-on-year decrease of 1.63%.
The company released the first quarterly report of 2022: the revenue of 2022q1 was 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 non net profit deducted was 40 million yuan, a year-on-year decrease of 15.97%.
Guoyuan view:
Rising raw material prices put short-term pressure on profits, and the cost side was well controlled
The gross profit margin of Q1 company in 2021 / 2022 was 36.24% / 35.08% respectively, with a year-on-year increase of -1.83 / -1.39pct respectively. From the cost side, the company’s sales expense rate / management expense rate / financial expense rate in 2021 were 14.66% / 4.50% / – 0.14% respectively, a decrease of 0.27/0.86/0.22pct compared with 2020. The R & D expense rate was 5.46%, which was 280 million yuan compared with -0.42 PCT in 2020, with a year-on-year increase of 24.69%, mainly due to expanding business and increasing R & D investment.
Improve the profitability of customized wardrobe
The synergy of customized kitchen cabinets, customized wardrobe, wooden door wallboard and other categories of the company is gradually emerging. From the revenue side, 1) the company’s overall kitchen cabinet business revenue in 2021 was 2.934 billion yuan, an increase of 17.43% at the same time; At the end of 2021, the number of dealers and stores were 1263 / 1691 respectively, an increase of 10 / 115 respectively compared with the end of 2020. 2) In terms of customized wardrobe, the company’s revenue in 2021 was 1.76 billion yuan, a year-on-year increase of 54.25%; At the end of 2021, the number of dealers and stores were 1211 / 1619 respectively, an increase of 114 / 253 respectively compared with the end of 2020. 3) In terms of wooden doors, the company focused on developing business channels for fine decoration projects, signed 13 real estate strategic contracts, and expanded high-end brands such as Panasonic in Japan and oxo in Italy. In 2021, the revenue was 170 million yuan, an increase of 291.53% at the same time. In terms of profitability, the gross profit margin of customized kitchen cabinets / customized wardrobe / wooden doors of the company in 2021 was 40.50% / 34.43% / 13.04% respectively, an increase or decrease of -1.34 / + 1.03 / – 2.94pct respectively compared with 2020. While ensuring the high growth of business, the profitability is also relatively stable.
Multi channels blossom everywhere, and the sinking effect of dealer channels is remarkable
The company’s channels are mainly dealers and bulk channels, supplemented by direct companies. From the revenue side, 1) in 2021, the sales revenue of distribution channel business was 2.83 billion yuan, with a year-on-year increase of 26.90%. During the operation period, the company continued to dig deep into the market. In the kitchen cabinet / wardrobe business in the distribution channel, the income of level 5 and 6 cities accounted for 55% / 50% respectively, an increase of 0.5/3.8pct respectively compared with 2020. 2) The company’s bulk business vigorously expanded high-quality real estate customers, reduced risks and achieved high performance growth. In 2021, the revenue was 1.651 billion yuan, a year-on-year increase of 40.59%. 3) The channel revenue of Direct stores was 322 million yuan, a year-on-year increase of 39.01%. In terms of profitability, the company’s gross profit margin of distribution channels / bulk business channels / Direct stores in 2021 was 34.33% / 38.49% / 65.80% respectively, an increase or decrease of + 2.79 / – 1.50 / – 3.05pct compared with 2020.
Investment advice and profit forecast
We are optimistic about the company’s layout of synchronous expansion of Wuxi Online Offline Communication Information Technology Co.Ltd(300959) channels in the future and the ability of coordinated expansion of customized household categories in the whole house. It is estimated that the company’s revenue from 2022 to 2024 will be RMB 6.294/75.60/8.715 billion respectively, the net profit attributable to the parent company will be RMB 592705/829 million respectively, the EPS will be RMB 1.90/2.26/2.65/share respectively, and the corresponding PE will be 10.51/8.83/7.52 times respectively, which will be raised to the “overweight” rating.
Risk tips
Risk of policy uncertainty in the real estate industry; Raw material price fluctuation risk; Covid-19 is at increased risk.
