\u3000\u3 Shengda Resources Co.Ltd(000603) 833 Oppein Home Group Inc(603833) )
Event: the company announced the first quarterly report that the operating revenue in the first quarter of 2022 was 4.144 billion yuan, a year-on-year increase of 25.60%; The net profit attributable to the parent company was 253 million yuan, a year-on-year increase of 3.88%; The net profit attributable to the parent company after deduction was 234 million yuan, with a year-on-year increase of 11.99%.
Comments:
The retail channel grew brightly, and the layout of packaged household products continued to improve. 22q1 company achieved a year-on-year growth of 25.6%, mainly driven by the rapid growth of retail channels, reflecting the strong growth toughness of the leader. In terms of products, the revenue of 22q1 cabinet, wardrobe and its supporting furniture products, bathroom and wooden door was 1.324 billion yuan, 2.320 billion yuan, 167 million yuan and 218 million yuan respectively, with a year-on-year increase of 5.13%, 40.85%, 1.19% and 32.29% respectively. By channel, the revenue of 22q1 Direct stores, distribution stores and bulk businesses was 123 million yuan, 3.223 billion yuan and 673 million yuan respectively, with year-on-year changes of + 51.15%, + 34.10% and - 6.98% respectively. In terms of stores, in 22q1, compared with the end of 21, the number of European style cabinets decreased by 10 to 2449, the number of European style wardrobe decreased by 58 to 2143, the number of European style sanitary ware increased by 5 to 810, and the number of European style Belle decreased by 15 to 974. The balance of contract liabilities of 22q1 company reached 1.358 billion yuan, a year-on-year increase of 12.85%. The abundant order reserves formed a good support for the future revenue growth.
The gross profit margin of 22q1 decreased slightly, and the effect of fee control and quality improvement was good. In terms of gross profit margin, the gross profit margin of 22q1 company was 27.66%, with a year-on-year increase of -2.53pct and a month on month increase of -1.33pct, mainly due to the rise of raw material prices, changes in business structure and sales discounts. In terms of expense rate, the sales / management / R & D / financial expense rate of 22q1 is 9.13% (- 0.55pct) / 7.12% (- 0.3pct) / 4.94% (- 0.14pct) / - 0.78% (- 0.52pct) respectively, and the effect of cost control is good. In terms of profit margin, the net profit attributable to the parent company in 22q1 was 253 million yuan, a year-on-year increase of 3.88%; Net interest rate attributable to parent company -1.28pct to 6.11%; Non net profit deducted was 234 million yuan, with a year-on-year increase of 11.99%; 22q1 non recurring profit and loss was 19.62 million yuan, a year-on-year increase of - 16%, mainly due to the fluctuation of government subsidies and related financial products. In terms of operation, the company consolidated basic management, optimized overall operation efficiency, and increased Q1 working capital turnover by 0.02 to 1.42 times year-on-year.
Optimistic about the accelerated improvement of leading shares and maintain the "buy" rating Oppein Home Group Inc(603833) for the innovation and iteration ability of business model, the company is leading the industry. In recent years, the company has successfully built a leading position in the two core categories of overall cabinet and whole house customization, superimposed the core advantages of marketing, manufacturing and channel, and actively promoted the upgrading of big home strategy. We believe that there is little difference in the products of the home furnishing industry. The company is rapidly building a channel moat by using the phased low gross profit business. In the long run, it is expected to further strengthen the "European style" brand effect and accelerate the improvement of market share. It is estimated that the net profit attributable to the parent company from 2022 to 2024 will be RMB 3.134 billion, RMB 3.651 billion and RMB 4.232 billion respectively, with a year-on-year increase of 17.6%, 16.5% and 15.9% respectively. At present, the share price corresponds to the PE of 2022 is 23.5x, maintaining the "buy" rating.
Risk factors: the risk of sharp decline in real estate sales and intensified industry competition
