Lianxiang Co., Ltd. (603272)
A total of one company made an inquiry in this period, and the main board listed company “Lianxiang Co., Ltd.” will make an inquiry on April 29 (Friday).
Lianxiang Co., Ltd. (603272): the company is mainly engaged in the R & D, design, production and sales of wall cloth; At the same time, it is also engaged in the R & D, production and sales of a small number of curtains and other indoor home decoration products, as well as the overall indoor home decoration engineering business. From 2019 to 2021, the company achieved operating revenue of 298 million yuan / 254 million yuan / 279 million yuan respectively, yoy was 20.52% / – 14.54% / 9.86%, and the annual compound growth rate of operating revenue in the three years was 4.2%; The net profit attributable to the parent company was 85 million yuan / 64 million yuan / 67 million yuan, yoy was 81.09% / – 25.41% / 5.16%, and the compound annual growth rate of the net profit attributable to the parent company in three years was 12.4%. According to the company’s preliminary forecast, the net profit attributable to the parent company in 2022q1 is expected to increase by 6.69% to 11.79% year-on-year.
Investment highlights: 1. The company is a well-known wallcovering manufacturer in the industry. Benefiting from consumption upgrading and wallcovering application penetration, the company can develop steadily. As one of China’s interior decoration materials, wall cloth benefited from the improvement of national consumption capacity and the growth of demand for home decoration. From 2015 to 2020, the production and sales of wall cloth in China continued to grow rapidly; At the same time, wallpaper products also continue to optimize their product positioning and enrich categories. In addition to replacing traditional wallpaper, they also start direct competition with emulsion paint in different price segments in terms of price. The penetration rate of wallpaper products is expected to continue to rise. The company is a well-known manufacturer of wall cloth in the industry. In 2011, it successfully designed and produced embroidered wall cloth with independent intellectual property rights. The brands of “leadshow” and “Lingxiu wall cloth | Jinghua” also have great market influence and are expected to fully share the growth dividend brought by the development and penetration of wall cloth industry. 2. The company explores the integrated development of multiple categories of indoor home furnishings, and expands the new curtain product line with the help of its own wall cloth brand and sales channels, which is expected to bring incremental market. Based on the consumers’ demand for the reasonable matching of the overall home decoration, the company chose the curtain with similar production process and high matching degree with wallpaper and wallpaper products in the terminal store as the development direction of the new product line. In 2021, the company’s curtain products achieved a revenue of about 7.06 million yuan, a rapid growth compared with 109000 yuan in 2020; At the same time, the company plans to increase the annual production capacity of 1.08 million meters of curtains in the raised investment project, and further expand the production capacity of the company’s curtain products.
Comparison of Listed Companies in the same industry: the comparable companies in the same industry of Lianxiang shares mainly include Shanghai Tianyang Hotmelt Adhesives Co.Ltd(603330) and Yulan shares; Among them, Shanghai Tianyang Hotmelt Adhesives Co.Ltd(603330) wall cloth products account for only 7.74% (the first half of 2021), which is quite different from the company’s product structure; Yulan’s products are more similar to the company, and its scale and volume are more similar to the company. However, it suffered a loss in 2021, and its listing on the new third board, comparability and pricing reference are also relatively limited. Currently, the latest pe-ttm of comparable company Shanghai Tianyang Hotmelt Adhesives Co.Ltd(603330) is 24.5x; The latest pe-ttm (median value) of decoration, a major industry to which Lianxiang shares can belong, is 33.1x.
Risk tips: companies that have started the inquiry process may still be unable to be listed for special reasons, the company’s content is mainly based on the contents of the prospectus and other public materials, there is a risk that the selection of Listed Companies in the same industry is not accurate, there may be interpretation deviation in the selection of content data, and the risks of specific listed companies are displayed in the text, etc.
