\u3000\u3 Shengda Resources Co.Ltd(000603) 898 Guangzhou Holike Creative Home Co.Ltd(603898) )
Core view
Event: the company released the annual report of 2021 and the first quarterly report of 2022. In 2021, the company achieved a revenue of 3.371 billion yuan, a year-on-year increase of 54.4%; The net profit attributable to the parent company was 65 million yuan, a year-on-year decrease of 76.35%; The basic earnings per share is 0.21 yuan / share. Among them, the company achieved a single quarter revenue of 942 million yuan in the fourth quarter, a year-on-year increase of 21.25%; The net profit attributable to the parent company was -169 million yuan, a year-on-year decrease of 274.91%. In 2022q1, the company achieved a revenue of 615 million yuan, a year-on-year increase of 8.35%; The net profit attributable to the parent company was 41 million yuan, a year-on-year increase of 3.87%; The basic earnings per share is 0.13 yuan / share.
The gross profit margin decreased year-on-year in 21 and rebounded in 22q1. In 2021, the company’s comprehensive gross profit margin was 33.94%, a year-on-year decrease of 2.76%. Among them, the gross profit margin of 21q4 was 33.66%, a year-on-year decrease of 0.64% and a month on month decrease of 0.28%. 22q1 single quarter gross profit margin was 35.77%, with a year-on-year increase of 3.09% and a month on month increase of 2.11%. The gross profit margin declined in 2021, mainly because: 1) under the background of rising raw material prices and rising costs driven by substrate upgrading, the company supports dealers to operate and make profit terminals, and the price remains stable; 2) The proportion of cabinets and wooden doors with relatively low gross profit margin increased.
Under the influence of multiple factors, the company’s net interest rate continued to weaken. In 2021, the company’s period expense rate was 20.99%, with a year-on-year decrease of 1.91%. Among them, the sales / management / Finance / R & D expense rate was 9.47% / 5.49% / 1.16% / 4.87%, with a year-on-year change of – 1.42% / – 0.71% / 0.09% / 0.14% respectively. In 2022q1, the company’s period expense rate was 23.54%, with a year-on-year increase of 1.9%. Among them, the sales / management / Finance / R & D expense rate was 10.85% / 6.47% / 1.45% / 4.77%, with a year-on-year change of 1.28% / 0.56% / – 0.2% / 0.27% respectively. In terms of net interest rate, in 2021, the company’s net interest rate was 0.05%, a year-on-year decrease of 12.3%; 22q1 single quarter net profit margin of the company was 8.9%, down 1.27% year-on-year. In 2021, the net interest rate of the company decreased significantly, mainly because: during the reporting period, some real estate customers defaulted on their debts, and the company accrued a large amount of impairment losses.
We will continue to implement the big home strategy, deepen management through all channels and promote growth. The company has a comprehensive category layout, achieved coordinated development under the big home strategy, and the retail customer unit price continued to increase by more than 10%. During the reporting period, the company’s wardrobe / cabinet / wooden door / finished product supporting / door and window products achieved revenue of RMB 20.37/2.1/845136/61 million respectively, with a year-on-year increase of 16.22% / 52.55% / 653.81% / 54.23% / 29.57% respectively. At the same time, the company continued to promote omni-channel development, continuously expanded the flow sources of retail business, and established a brand matrix covering high, medium and low consumption levels. At the end of 21, the number of physical stores of the company reached 2033, an increase of 16 year-on-year. During the reporting period, the company’s retail channel achieved a revenue of 2.543 billion yuan, accounting for 77.34% of the main business revenue, which is still the main core channel of the company.
Investment suggestion: the company continues to promote the big home strategy, achieve coordinated development in category expansion, deepen management and expand the flow matrix through all channels, and the future performance growth can be expected. It is expected that the company will realize the basic earnings per share of 1.35/1.63/1.92 yuan / share in 2022 / 23 / 24, and the corresponding PE is 6x / 5x / 4x, maintaining the “recommended” rating.
Risk tip: the risk that the economic growth is less than expected; The risk of intensified market competition.
