\u3000\u3 China Vanke Co.Ltd(000002) 572 Suofeiya Home Collection Co.Ltd(002572) )
Event:
The company released the first quarterly report of 2022. 1q2022, the company achieved revenue / net profit attributable to the parent company / net profit deducted from non attributable to the parent company of RMB 1.999114/106 billion respectively, with a year-on-year increase of + 13.5% / – 2.9% / + 5.0% respectively.
Comments:
The distribution channels continued to expand, milanna made a good start and jointly boosted the growth of operating revenue: from the perspective of sub channels, the distribution / bulk / direct sales channels of 1q2022 company achieved revenue of 1.59/3.4/0.6 billion yuan respectively, with a year-on-year increase of + 21.8% / – 8.1% / – 17.9% respectively, and the proportion of revenue was 79.9% / 16.7% / 3.1% respectively. Milanna strengthened the recruitment of dealers and accelerated the opening of stores. In 2021, Milana’s operating revenue exceeded 100 million yuan, and 1q2022’s operating revenue reached 40.68 million yuan. 1q2022, the dealer cooperative assembly enterprises and the headquarters directly signed assembly enterprises realized a total assembly revenue of 127 million yuan, a year-on-year increase of + 300%. The assembly business line has gradually become a new growth point of the company.
In terms of the number of dealers, as of 1q2022, Suofeiya Home Collection Co.Ltd(002572) / Simi / Huahe / milanna had 1746 / 776 / 334 / 397 dealers respectively, with + 76 / – 183 / + 72 / + 338 respectively year-on-year and + 12 / – 153 / + 24 / + 37 respectively month on month. In terms of the number of stores, as of 1q2022, Suofeiya Home Collection Co.Ltd(002572) / Simi / Huahe / milanna had 2571 / 994 / 296 / 277 stores respectively, with – 208 / – 124 / + 19 / + 217 stores respectively year-on-year and – 159 / – 128 / + 31 / + 65 stores respectively month on month. We believe that the change in the number of stores in the first quarter was mainly affected by two aspects. First, the company took the initiative to eliminate some stores; Second, Simi upgraded from cabinet to whole house, and the company eliminated some dealers and stores that could not comply with Simi’s development strategy.
The gross profit margin increased slightly year-on-year, and the net profit margin decreased slightly year-on-year: 1q2022, and the company’s gross profit margin increased by + 0.1pcts to 31.3% year-on-year. The net interest rate was -0.9pcts to 5.7% year-on-year. The expense rate during 1q2022 was 24.0%, year-on-year + 0.2pcts. In terms of sub items, due to the company’s increasing investment in advertising and increasing the salary of sales personnel, the sales expense rate increased from + 1.4pcts to 12.2% year-on-year; Due to the company’s good expense control, the management expense rate increased from – 1.7pcts to 7.7% year-on-year; As the balance of bank borrowings was higher than that in the same period of last year, the interest cost of borrowings increased, and the financial expense rate increased from + 0.3pcts to 0.8% year-on-year. In addition, the R & D expense ratio increased from + 0.1pcts to 3.3% year-on-year.
Retail growth performed well, the valuation was at the bottom and maintained the “buy” rating: in view of the fact that the company’s cost investment exceeded our previous estimate, we slightly reduced the company’s EPS from 2022 to 2024 to 1.46/1.79/2.14 yuan (3.3% / 3.8% / 3.6% respectively compared with the previous forecast), and the corresponding PE was 13 / 11 / 9 times respectively. In view of the fact that the company’s current valuation level is at a historical low and China’s real estate is easing this year, Maintain the “buy” rating.
Risk tip: China’s real estate sales are lower than expected, and the rise of raw material prices is higher than expected.
