\u3000\u3 Shengda Resources Co.Ltd(000603) 833 Oppein Home Group Inc(603833) )
Event: the company released the first quarter report of 2022, and the revenue exceeded expectations. The company achieved revenue of 4.144 billion yuan in 22q1, a year-on-year increase of + 25.6%; The net profit attributable to the parent company was 253 million yuan, a year-on-year increase of + 3.88%; Deduct net profit not attributable to the parent company of 234 million yuan, a year-on-year increase of + 11.99%.
Clothing and wood continued to grow at a high rate, with excellent retail growth. In terms of products, the company’s 22q1 cabinet / wardrobe and supporting / bathroom / wooden door revenue were 13.24/23.2/1.67/218 million yuan respectively, with a year-on-year increase of + 5.13% / 40.85% / 1.19% / 32.29% respectively. The wardrobe and wooden door continued to increase. In terms of sub channels, the sales revenue of distribution / direct channels of 22q1 company was 3.22/120 billion yuan respectively, with a year-on-year increase of + 34.1% and 51.2% respectively. The growth rate of direct channels was bright, and the retail channels still maintained a high growth rate under the high base in the same period last year; The bulk channels were steadily promoted, and the revenue decreased by 6.98% to 670 million yuan. The number of stores continued to be optimized, with 2449 / 2143 / 810 / 1022 / 974 cabinets / wardrobe / bathroom / wooden doors / opaline stores respectively, up from – 10 / – 58 / + 5 / + 1 / – 15 at the end of 2021.
Profit is under pressure in the short term, and the effect of refined fee control is beginning to show. The company’s 22q1 gross profit margin / net profit margin were 27.66% / 6.08% respectively, with a year-on-year ratio of -1.31 / -0.28pct and a month on month ratio of -3.05 / -2.17pct. Due to the rise in the price of raw materials, the increase in the proportion of supporting products, the depreciation of fixed assets and other factors, the profit is under short-term pressure. In terms of expenses, the 22q1 company has reduced the period expense rate from 1.5pct to 20.4% through fine management, and has excellent expense control ability.
Carry out the pilot of the new mode of assembly, with good orders on hand, and Q2 can be expected in large quantities. The company actively explored the new model of big home, and proposed to set up a joint venture in core cities jointly funded by the group and dealers in early April to set up a three-dimensional drainage big home exhibition center to further grasp the initiative of traffic entrance. In addition, 22q1 company has good orders on hand, and the total contract liabilities + advance receipts reached 1.98 billion yuan, a year-on-year increase of + 39.9%. Since Q2, it has been in large quantities, with high performance and long-term growth.
Investment advice and valuation. The company firmly pursues the strategy of integrated large home furnishing, grasps the strategic flow entrance, cooperates with the development of multiple categories, improves the customer unit value, and continues to strengthen the product strength and omni-channel advantages. We expect the net profit attributable to the parent company in 22-24 years to be RMB 3.061/35.96/4.338 billion respectively, with a year-on-year increase of + 14.8% and 17.5% / 20.6%, corresponding to PE of 22.23x/18.92x/15.68x, maintaining the “buy” rating.
Risk warning.
Downside risks of real estate, sharp fluctuations in raw materials, intensified industry competition and repeated epidemic risks.
