\u3000\u3 Shengda Resources Co.Ltd(000603) 180 Goldenhome Living Co.Ltd(603180) )
Event: the company released the quarterly report of January 2022. In the first quarter of 2022, the company realized an operating revenue of 569 million yuan, a year-on-year increase of 17.24%, a net profit attributable to the parent company of 30 million yuan, a year-on-year decrease of 31.16%, and a deduction of non net profit of 13 million yuan, a year-on-year increase of 30.37%.
Key investment points
22q1 company’s revenue increased steadily, and the growth rate of deducting non net profit was higher than that of revenue. On the revenue side, 22q1, the company achieved a revenue of 569 million yuan, a year-on-year increase of 17.24%. The company’s revenue maintained a steady growth, mainly due to the continuous growth of sales volume of various categories. On the net profit side, in 22q1, the company realized a net profit attributable to the parent company of 30 million yuan, a year-on-year decrease of 31.16%, and a net profit deducted of 13 million yuan, a year-on-year increase of 30.37%. The growth rate of net profit deducted was faster than that of revenue, mainly benefiting from the improvement of profitability. The decline of net profit attributable to the parent company was due to time differences. Some government subsidies of the company were not confirmed in the first quarter, and the government subsidies of 22q1 company decreased by 73.3% to 8.41 million yuan year-on-year.
22q1 maintained a net number of offline stores, and the growth rate of engineering business increased month on month. In terms of channels, 1) dealer channels: in 22q1, the revenue was 300 million yuan, with a year-on-year increase of 10.3%, and the gross profit margin was 34.9% (+ 3.3pct). By the end of 22q1, the company’s distribution stores had a net increase of 100 to 3162 compared with the beginning of the period, including 953 wardrobe stores (+ 34), 1736 kitchen cabinets (+ 16), 431 wooden doors (+ 43) and 42 decoration stores (+ 7). We expect that the growth of dealer channel revenue of the company will mainly contribute to the expansion of stores. 2) In terms of direct channels, 22q1 achieved a revenue of 28 million yuan, a year-on-year increase of 3.8% and a gross profit margin of 64.6% (+ 4.5pct). 3) In terms of bulk channels, 22q1 achieved a revenue of 178 million yuan, a year-on-year increase of 27.9% and a gross profit margin of 12.1% (+ 0.3pct).
22q1 wardrobe business maintained rapid growth, and the gross profit margin of all categories increased. By category, 1) in terms of overall kitchen cabinets, 22q1 achieved an income of 382 million yuan, a year-on-year increase of 7.9%, and the gross profit margin was 29.4% (+ 1.78pct). The increase in gross profit margin was mainly due to the adjustment of the product structure of retail kitchen cabinets. 2) In terms of overall wardrobe, 22q1 achieved a revenue of 152 million yuan, a year-on-year increase of 32.1%, accounting for 26.7% of revenue and 28.9% of gross profit margin (+ 1.72pct). 3) In terms of wooden doors, 22q1 achieved a revenue of 17 million yuan, a year-on-year increase of 107.9% and a gross profit margin of 5.2% (+ 4.64pct). The scale effect of wardrobe and wooden door is gradually reflected, driving the rise of gross profit margin. 4) In terms of other products, 22q1 achieved an income of 771600 yuan, a year-on-year decrease of 30.1% and a gross profit margin of 2.7% (+ 0.32pct).
The increase of 22q1 sales expense rate is expected to be related to the increased publicity and promotion of the company’s 315 activities. In terms of profitability, in 22q1, the company’s gross profit margin increased by 1.9pct to 29.9% year-on-year. In terms of expense rate, in 22q1, the company’s total expense rate increased by 2.0pct to 27.5%, of which the sales / management / R & D / financial expense rates were 14.7%, 6.7%, 6.4% and – 0.3% respectively, with a year-on-year increase of + 1.7, + 0.4, + 0.1 and – 0.3pct. Under the combined impact of the reduction of non recurring profits and losses, the company’s net sales interest rate in 22q1 was 5.0%, a year-on-year decrease of 3.9pct. In terms of inventory, by the end of 22q1, the company’s inventory was 537 million yuan, an increase of 14.1% over the beginning of the period, and the inventory turnover days were 114 days, an increase of 56 days over the beginning of the period. In terms of cash flow, in 22q1, the company’s net cash outflow from operating activities was 504 million yuan, with a year-on-year increase of 68.1%, which was due to the increase of the company’s purchase of raw materials and payment of operating expenses.
Investment suggestion: in the first quarter of this year, the company maintained a net opening of offline channels, the scale effect of wardrobe and wooden door categories gradually appeared, the growth rate of bulk business was faster than that of the previous quarter, and the risk under the agent mode was more controllable. We continue to be optimistic about the integrated development of kitchen, clothing and wood products of the company, and maintain the profit forecast. It is predicted that the earnings per share of the company in 20222024 will be 2.73 yuan, 3.19 yuan and 3.66 yuan respectively, corresponding to 9 times of the PE of the company in 22 years, and maintain the proposal of “increasing shareholding-a”.
Risk warning: the completion and sales data of commercial housing are not as expected; Industry competition intensifies; The shop opening progress is not as expected; Risk of sharp fluctuations in raw material prices; The impact of the epidemic exceeded expectations.
