\u3000\u3 Shengda Resources Co.Ltd(000603) 833 Oppein Home Group Inc(603833) )
Conclusions and suggestions:
Performance summary:
It was announced that in 2021, the annual revenue was 20.44 billion, a year-on-year increase of 38.7%, and the net profit was 2.67 billion, a year-on-year increase of 29.2%. Based on this calculation, 4q realized a revenue of 6.04 billion, a year-on-year increase of 20.6%, and a net profit of 550 million, a year-on-year decrease of 10%.
It was announced that in 2021q1, the revenue was 4.14 billion, a year-on-year increase of 25.6%, the net profit was 250 million, a year-on-year increase of 3.9%, and the net profit after deduction was 230 million, a year-on-year increase of 112%. 1q performance exceeded expectations. Dividend scheme: cash dividend of 17.5 yuan per 10 shares
Throughout 2021, the company overcame many adverse factors such as repeated epidemic, rising prices of raw materials, environmental protection and production restriction, improved production efficiency, improved information connection and achieved steady growth of performance through optimization of production process and reform and innovation of incentive mechanism. In terms of categories, the revenue of wardrobe business was 10.17 billion, a year-on-year increase of 49.5%, the revenue of cabinet business was 7.53 billion, a year-on-year increase of 24.2%, the revenue of sanitary ware was 1 billion, a year-on-year increase of 33.7%, the revenue of wooden door was 1.24 billion, a year-on-year increase of 60.4%, and the revenue of other businesses was 220 million, a year-on-year increase of 64.4%.
In terms of channels, the company deepened its Omni channel development strategy, with a total of 7112 offline stores. During the year, it creatively put forward a new mode of “whole family customization”, forming an operation mode with retail and packaging as the backbone, engineering and e-commerce as the two wings, and direct sales and foreign trade as the important support. During the reporting period, the annual order receiving performance of the whole packaging group increased by more than 90% year-on-year.
In terms of gross profit margin, in the second half of the year, affected by the increase in the price of raw materials and the proportion of supporting products with low gross profit, the gross profit margin decreased by 3.39 percentage points year-on-year to 31.62%, and 4q decreased by 4 percentage points year-on-year to 29%. The decline of gross profit margin and the provision of 80 million credit impairment loss by 4q were the main reasons for the decline of net profit in the fourth quarter. In terms of expenses, during the reporting period, by improving production efficiency and accurately controlling expenses, the comprehensive expense rate decreased by 2.62 points to 16.19% year-on-year, and the 4Q expense rate decreased by 2.14 percentage points to 17.24% year-on-year.
In the first quarter of 2022, wardrobe and supporting facilities drove the overall revenue of the company to exceed expectations. In terms of various categories, the income of wardrobe was 2.32 billion, a year-on-year increase of 71.6%, the income of cabinet was 1.32 billion, a year-on-year increase of 5.1%, the income of bathroom was 170 million, a year-on-year increase of 1.2%, and the income of wooden door was 220 million, a year-on-year increase of 32%. In terms of channels, the bulk revenue decreased by 7% year-on-year to 670 million, which is expected to be mainly due to the reduction of the company’s risk exposure. The retail revenue increased strongly, while the revenue of direct sales and distribution stores increased strongly, with the growth rates of 51.2% and 34.1% respectively. It is expected that the packaged large home is still outstanding, and the number of offline stores decreased by 77 month on month, mainly due to the consideration of business optimization. In terms of gross profit margin, the gross profit margin in the reporting period decreased by 2.5 percentage points to 27.7% year-on-year, mainly due to the rise in the price of raw materials and profit giving dealers. However, due to the company’s efforts to maintain accurate cost control (the cost rate during the period decreased by 1.52 percentage points to 20.41% year-on-year), the company’s performance is good after deduction.
In 2022, the company will continue to move forward along the long-term development goal of “building europay into a world excellent home group”. The company’s performance in the first quarter exceeded expectations, which also further boosted confidence. During the year, it is expected to successfully achieve the goals set at the beginning of adulthood by improving informatization and operation management capabilities and promoting big home strategy. It is estimated that from 2022 to 2023, the net profit will be 3 billion yuan and 2.64 billion yuan respectively, with a year-on-year increase of 12.8% and 21% respectively. The EPS will be 4.94 yuan and 5.97 yuan respectively. The current share price corresponding to PE is 23 times and 19 times respectively. The investment proposal of “interval operation” is given.
Risk tip: the industry boom is lower than expected, the cost pressure is rising, and the impact of the epidemic is higher than expected
