\u3000\u3 Shengda Resources Co.Ltd(000603) 898 Guangzhou Holike Creative Home Co.Ltd(603898) )
Event overview
The company released the annual report of 2021 and the report of the first quarter of 2022: in 2021, the company achieved a revenue of 3.371 billion yuan, a year-on-year increase of + 54.40%; The net profit attributable to the parent company was 65 million yuan, a year-on-year increase of - 76.35%; The net profit attributable to the parent company after deduction was 39 million yuan, a year-on-year increase of - 83.94%. Quarterly, the revenues of Q1, Q2, Q3 and Q4 companies were 568, 956, 905 and 942 million yuan respectively, with a year-on-year increase of + 203.00%, + 72.86%, + 35.92% and + 21.25% respectively; The net profit attributable to the parent company was 39 million yuan, 99 million yuan, 96 million yuan and - 169 million yuan respectively, with a year-on-year increase of + 328.81%, + 5.11%, - 7.17% and - 274.91% respectively. The company continued to focus on the core strategy of "new original state + big home", carried out structural adjustment guided by scale share on the basis of stabilizing business, maintained stable growth of product orders over the same period of last year, superimposed and listed in QianChuan, Hubei Province, and the revenue increased rapidly year-on-year in 2021; The sharp year-on-year decline in profit side growth was mainly due to Evergrande's debt default, and the company accrued a total of 437 million yuan of credit impairment losses and asset impairment losses. In terms of cash flow, the net cash flow from operating activities in 2021 was 296 million yuan, with a year-on-year increase of - 46.75%, of which the net cash flow from Q4 operating activities was 256 million yuan, with a year-on-year decrease of - 23.37%. The year-on-year decrease of cash flow was mainly due to the impact of operating inflow due to debt breach by some real estate customers during the reporting period. 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 net profit attributable to the parent company after deduction was 35 million yuan, a year-on-year increase of + 4.06%. In terms of cash flow, the net cash flow from operating activities of 2022q1 company was -89 million yuan, a year-on-year increase of + 42.28%, mainly due to the year-on-year decrease in cash paid for purchasing goods and receiving labor services.
Analysis and judgment:
Sub products: the extended categories maintained rapid growth, and the proportion of large household orders increased steadily
The revenue of the company's main business of doors and windows was 1.03 billion yuan, and that of the company's main business of doors and windows was 1.56 billion yuan, and that of the company's main business of doors and windows was 1.56 billion yuan, and that of the company's main business of doors and windows was 6.53 billion yuan, and that of the company's main business of doors and windows was 6.56 billion yuan, and that of the company's main business of doors and windows was 6.56 billion yuan, and that of the company's main business of doors and windows was 6.56 billion yuan, and that of the company's main business of doors and windows was 6.56 billion yuan, and; The extended categories such as wooden doors, cabinets and finished product supporting facilities maintained a high growth and significantly increased their contribution to revenue; Thanks to the enrichment of product categories, the company's retail customer unit price has maintained a growth rate of more than 10% in the past 21 years, and the proportion of large household orders has increased steadily; Through the merger and acquisition of QianChuan, Hubei Province, the company integrated wooden door resources and helped improve the overall production efficiency of wooden doors. In 21 years, QianChuan brand achieved a revenue of 771 million yuan. In 2022q1, the company's overall income from wardrobe, cabinet, wooden door, finished products supporting and doors and windows was RMB 344 million, RMB 43 million, RMB 177 million, RMB 28 million and RMB 06 million respectively, with the same score of + 6.98%, + 20.90%, + 6.53%, + 23.01% and - 42.78%, accounting for 57.57%, 7.16%, 29.57%, 4.69% and 1.01% of the main business income respectively. In Q1, under the background of the epidemic situation and the high base in the same period last year, the company's various categories still maintained a rapid growth rate, including cabinet The extended categories such as finished products and supporting facilities have a year-on-year high double-digit growth, and their proportion in the main business has increased.
Sub channel: driven by "retail and Engineering", the bulk business increased year-on-year
By channel, the company's Direct stores, distribution stores and bulk business revenue in 2021 were 82 million yuan, 2461 million yuan and 740 million yuan respectively, with a year-on-year increase of + 23.99%, 26.63% and 499.48% respectively, accounting for 2.50%, 74.85% and 22.52% of the main business revenue respectively; In the past 21 years, the company's omni-channel operation system was initially formed, realizing the two wheel drive of "retail and Engineering". The bulk business benefited from the consolidation, and the revenue of QianChuan, Hubei Province increased year-on-year. In terms of stores, in 2021, the company had 2033 stores, with a net increase of 16 throughout the year, including 74 and 2 distribution and direct stores respectively to 2006 and 27 (Q4 net increase of - 4 and - 4 distribution and direct stores respectively in a single quarter). The company adjusted its layout in terms of retail channels and brand construction. On the one hand, it promoted the establishment of all-channel traffic grabbing, on the other hand, it built a brand matrix suitable for medium and high consumption levels. At the same time, it actively arranged in the channels of bag carrying, personalized home decoration, art decoration, new retail and foreign trade to help the overall sales growth. In 2022q1, the company's Direct stores, distribution stores and bulk business revenue were 21 million yuan, 414 million yuan and 162 million yuan respectively, with a year-on-year increase of + 32.04%, + 6.94% and + 6.08% respectively, accounting for 3.49%, 69.30% and 27.11% of the main business revenue respectively. In terms of stores, 2022q1 company has 2068 stores, a net increase of 35 over the beginning of the year; Among them, the number of distribution and direct stores increased by 34 and 1 to 2040 and 28 respectively.
Profit side: the profitability of 21 years was under short-term pressure, and the expenses increased slightly during 22q1
In 2021, the gross profit margin and net profit margin of the company were 33.94% and 0.05% respectively, with a year-on-year increase of -2.76pct and -12.30pct respectively; Among them, the gross profit margin and net profit margin of the company in Q4 were 33.66% and - 31.43% respectively, with a year-on-year increase of -0.64pct and -43.98ct respectively; We analyzed that the decline in gross profit margin was mainly due to the continuous profit making dealers of the company and the increase in the proportion of cabinets and wooden doors with low gross profit under the epidemic; The sharp decline in net interest rate was mainly due to the debt default of some real estate customers and the company's provision for credit impairment loss and asset impairment loss. The gross profit margin and net profit margin of 2022q1 company are 35.77% and 8.90% respectively, with a year-on-year increase of + 3.09pct and -1.27pct respectively; The profitability of the company improved and the net interest rate decreased slightly, mainly due to the increase of expense rate during the period. In terms of products, the gross profit margins of the company's overall wardrobe, cabinet, wooden door, finished product supporting and doors and windows in 21 years were 37.22%, 26.60%, 34.40%, 22.24% and 0.29% respectively, with a year-on-year increase of -3.31pct, + 1.32pct, + 2.23pct, -4.30pct and -0.06pct respectively. Among them, the scale effect of cabinet and wooden door products was played and the profitability was improved; In terms of channels, the gross profit margins of Direct stores, distribution stores and bulk businesses in 2021 were 58.69%, 33.79% and 34.36% respectively, with a year-on-year decrease of -4.93pct, - 3.55pct and + 4.76pct respectively. The gross profit margins of Direct stores and distribution stores decreased. In terms of period expenses, the company's period expense rate in 2021 was 20.99%, with a year-on-year increase of -1.91 PCT, of which the sales expense rate, management expense rate, R & D expense rate and financial expense rate were 9.47%, 5.49%, 4.87% and 1.16% respectively, with a year-on-year increase of -1.42 PCT, -0.71 PCT, + 0.14 PCT and + 0.09 PCT respectively. By quarter, the expense rate in Q4 single quarter was 24.37%, with a year-on-year increase of + 4.39 PCT, including sales expense rate, management expense rate, R & D expense rate The financial expense rates were 10.60%, 6.81%, 6.02% and 0.95% respectively, with a year-on-year increase of + 2.26pct, + 1.05pct, + 1.10pct and -0.02pct respectively.
During 2022q1, the company's expense rate was 23.54%, with a year-on-year increase of + 1.90pct, of which the sales expense rate, management expense rate, R & D expense rate and financial expense rate were 10.85%, 6.47%, 4.77% and 1.45% respectively, with a year-on-year increase of + 1.28pct, + 0.56pct, + 0.27pct and -0.20pct respectively.
Investment suggestions:
The company continues to deepen all-channel management, continuously enrich product categories, and steadily promote the big home strategy; Make concerted efforts in brand and design, and continue to build Guangzhou Holike Creative Home Co.Ltd(603898) ip; Lean operation continues to optimize the supply chain, reduce costs and control fees, and improve the overall benefit level. We continue to be optimistic about the continuous expansion of the company's retail business and the vigorous development of the company's engineering channels; In addition, the company acquired QianChuan and accelerated the layout of b-end channel to realize "2B + 2C" two wheel drive. Based on the epidemic situation and the optimization of the company's bulk business customer structure, we adjusted the previous profit forecast. The company's revenue in 22-23 years was adjusted from 4.977 billion and 5.902 billion yuan to 3.899 billion and 4.368 billion yuan respectively, and the revenue in 2024 is expected to be 4.816 billion yuan; From 2022 to 2023, EPS will be adjusted from 1.52 and 1.84 yuan / share to 1.12/1.27 yuan / share respectively, and EPS is expected to be 1.44 yuan / share in 2024. Referring to the closing price of 8.05/share on April 29, 2022, the corresponding PE is 7 times, 6 times and 6 times respectively, maintaining the "buy" rating.
Risk tips:
M & A integration is less than expected; The expansion of retail channels is less than expected; The completion data of the property is less than expected; Intensified industry competition, etc.
