\u3000\u3 Shengda Resources Co.Ltd(000603) 208 Jiangshan Oupai Door Industry Co.Ltd(603208) )
Core view:
Jiangshan Oupai Door Industry Co.Ltd(603208) disclose the annual report of the company. In 2021, Jiangshan Oupai Door Industry Co.Ltd(603208) achieved an operating revenue of RMB 3.157 billion, with a year-on-year increase of 4.84%. The net profit attributable to the parent company after deducting non profits rose to 216 million yuan, a year-on-year decrease of 45.09%. Among them, the company achieved an operating revenue of 491 million yuan in the first quarter, a year-on-year increase of 3.46%. The net profit of non parent decreased by 7.1 billion yuan year-on-year, which was 8.0%.
On the whole, after the risk events of Evergrande and other major customers, the company made a series of adjustments on the channel side in order to stabilize its position. In terms of Engineering channels, the company has changed from focusing on major customers of direct engineering to direct engineering and agency engineering business, so as to disperse the risks of bulk business. Nevertheless, with the decline of real estate, it is difficult to develop high-quality key customers, and the bulk business is still under great pressure. In 2021, the company’s bulk business amounted to 2.218 billion yuan, a year-on-year decrease of 14.93%. While the bulk business continued to decline, the company actively cultivated retail business. In order to further develop the dealer market and improve the enthusiasm of dealers, the company cancels the exclusive agency mode of dealers and implements the business mode of synchronous development of various dealers to improve the market share. In 2021, the company joined 13469 dealers, including 9895 new franchisees, with great development efforts.
On the profit side, the gross profit margin of the company decreased to 29.10% in 2021, down 3.10 percentage points year-on-year, and the gross profit margin decreased. Overall, the company’s gross profit margin continued to decline for the following two reasons: (1) with the continuous decline of real estate, the fierce competition in engineering channel business and the low quotation of real estate customers led to the decline of the company’s gross profit margin; (2) The price rise of hardware, paint and other raw materials has put pressure on the cost side of the company; (3) The proportion of revenue from direct engineering channels with higher gross profit decreased, and the proportion of revenue from Agency Engineering channels and dealer channels with lower gross profit increased.
We believe that the company is currently in the period of business adjustment, the engineering business continues to decline, and the newly developed retail channels are still in the cultivation period and in the stage of “green and yellow”. With the gradual recovery of the real estate market in the future and the gradual growth of the retail business, the company may gradually get out of the current difficult situation.
