\u3000\u3 Shengda Resources Co.Ltd(000603) 833 Oppein Home Group Inc(603833) )
Event:
The company released the first quarterly report of 2022, and the revenue / net profit attributable to the parent company / net profit deducted from non attributable to the parent company were 4.14/2.5/230 billion yuan respectively, with a year-on-year increase of + 25.6% / + 3.9% / + 12.0% respectively.
Comments:
Wardrobe and accessories maintained a bright growth rate, the whole decoration continued to make great efforts, and the advance payment increased significantly: 1q2022, the revenue of cabinet / wardrobe and accessories / bathroom / wooden door was 13.24/23.2/1.7/220 million yuan respectively, with a year-on-year increase of + 5.1% / + 40.9% / + 1.2% / + 32.3% respectively, and the revenue accounted for 32.5% / 57% / 4.1% / 5.4% respectively. In terms of channels, the revenue of direct sales / distribution / bulk channels was 120 / 32.2 / 670 million yuan respectively, with a year-on-year increase of + 51.1% / + 34.1% / – 7.0% respectively. We estimate that 1q2022, the company’s packaging revenue is 400 million yuan, a year-on-year increase of + 77%. The packaging track continues to make great efforts, injecting growth vitality into the company’s retail business.
As of 1q2022, the total number of dealer stores was 7398, a decrease of 77 compared with the end of 2021. Among them, the number of cabinets / wardrobe / bathroom / wooden door / opaline stores is 2449 / 2143 / 810 / 1022 / 974 respectively, which is – 10 / – 58 / + 5 / + 1 / – 15 respectively compared with the end of 2021.
1q2022, the advance receipts and contract liabilities of the leading indicators totaled 1.98 billion yuan, a year-on-year increase of + 39.3%, indicating that the company will continue to maintain a strong growth momentum in the future.
The profitability decreased slightly, and the cost control during the period was strict: 1q2022. The company’s comprehensive gross profit margin increased from – 2.5pcts to 27.7% year-on-year. In terms of products, the gross profit margins of cabinets / wardrobe and accessories / bathroom / wooden doors were 30.5% / 28.6% / 20.3% / 10.1% respectively, with a year-on-year increase of – 1.2 / – 2.4 / – 1.4 / – 1.5pcts respectively. In terms of channels, the gross profit margin of direct sales / distribution / bulk channels was 58.1% / 26.7% / 27.1% respectively, with a year-on-year increase of – 2.0 / – 2.2 / – 3.1pcts respectively. The company’s profitability declined year-on-year, which was mainly affected by the rise in raw material prices. At the same time, we estimate that the proportion of supporting products’ revenue increased, which structurally reduced the overall profitability of the company.
1q2022, the company’s expense rate during the period was 20.4%, year-on-year -1.5pcts. By item, the rates of sales / management / R & D / financial expenses were 9.1% / 7.1% / 4.9% / – 0.8% respectively, with a year-on-year increase of -0.5 / – 0.3 / – 0.2 / – 0.5pcts respectively. We believe that the decrease in expense rate during the period is due to the company’s good expense control on the one hand, and the increase in the proportion of revenue of supporting products on the other hand.
Strong revenue growth, once again showing the leading nature and maintaining the “buy” rating: given that the profitability of the company in the first quarter is slightly lower than our previous estimate, and the impact of the rise in raw material prices may continue, we slightly lowered the company’s EPS forecast for 20222024 to 5.05/5.92/6.99 yuan respectively (the previous forecast was 5.07/5.94/7.03 yuan respectively), and the current share price corresponding to PE is 22 / 19 / 16 times respectively. According to the first quarterly report of customized home furnishing enterprises, the company ranks first in the industry in terms of revenue scale, and the growth rate in the first quarter remains the best in the whole industry, once again showing the competitive strength of the head company. At present, the company’s valuation level has been at a historically low position and maintains the “buy” rating.
Risk tip: China’s real estate sales are lower than expected, and the rise in raw material prices is higher than expected.
