\u3000\u3 China Vanke Co.Ltd(000002) 572 Suofeiya Home Collection Co.Ltd(002572) )
Event: the company's operating revenue in 2022q1 was 1.999 billion yuan, a year-on-year increase of + 13.53%; The net profit attributable to the parent company was 114 million yuan, a year-on-year increase of - 2.87%; The net profit attributable to the parent company was RMB 0.06 billion, with a year-on-year deduction of RMB 0.05 billion.
The whole packaging business has made great efforts, and the traditional retail has maintained growth after the brand has been sorted out. In 2022, Q1 achieved revenue of 1.659 billion yuan in retail and 335 million yuan in bulk channels, with a year-on-year increase of + 19.55% and - 8.10% respectively. The rapid growth of retail business under the influence of the epidemic has benefited from: 1) the accelerated development of packaged business, with a revenue of 127 million yuan, an increase of more than 200% at the same time; 2) By brand, the whole package of Suofeiya Home Collection Co.Ltd(002572) brand is advancing smoothly, and the category expansion is effective; Milanna brand's investment attraction is smooth, with revenue exceeding 100 million in 2021 and over 40 million in 2022q1 Suofeiya Home Collection Co.Ltd(002572) , and the number of stores of simi brand decreased by 159 and 128 to 2571 and 994 respectively. We speculate that the company took the initiative to optimize some stores that do not adapt to the new positioning. The expansion of categories is the main factor for the rapid growth of retail revenue. In the future, with the clear sorting of brand channels, the company's retail end is expected to continue to grow rapidly. For bulk businesses, the company made steady progress by taking advantage of its delivery advantages and continued to optimize the customer structure. Q1 only achieved a single digit decline on the premise that Evergrande accounted for 30% in the same period last year.
The strategic effect of the whole family was obvious, and the customer unit price increased rapidly. In February 2022, Suofeiya Home Collection Co.Ltd(002572) brand officially released the whole package, launched cabinets and expanded the category boundary to software and household appliances. The whole category operated smoothly, and the customer unit price of Suofeiya Home Collection Co.Ltd(002572) brand increased by nearly 20%; Furniture products maintain a good gross profit margin. In the future, with the increase of scale, the bargaining power of the company is expected to increase, and furniture products may provide higher profit increment. At present, most Suofeiya Home Collection Co.Ltd(002572) stores have completed the loading of cabinet products, and the stores are gradually reloaded according to the customized positioning of the whole store. Simi actively carries out brand upgrading and moves from cabinet to the whole house by opening an art life home store to create an advanced customized positioning; Milanna is targeting young people and expanding rapidly. The mature experience of Suofeiya Home Collection Co.Ltd(002572) category expansion in the future may drive the growth of other brands.
Profitability declined slightly under the pressure of rising prices of raw materials. Q1 gross profit margin was 31.32%, with a year-on-year increase of + 0.09pct. The gross profit margin remained stable under the rise of raw material prices, mainly due to the company's cost reduction measures such as reducing SKUs and the decline in the proportion of bulk commodities. The sales expense rate and management expense rate were 12.18% and 7.65% respectively, with a year-on-year increase of + 1.43pct and -1.72pct. The management expenses are well controlled and the sales expense rate is increased, mainly because the company increases the marketing expenses to match the launch of the whole package and the expansion of milanna. It is expected that the subsequent increase in sales expense rate will be gradually narrowed. On the whole, the net interest rate deducted from non net income was -0.43pct year-on-year, which remained stable.
Investment suggestion: the whole strategy opens up growth space for the company, and category expansion is expected to promote the sustained and rapid growth of the company's performance. It is estimated that the net profit of the company from 2022 to 2024 will be 1.430 billion yuan, 1.727 billion yuan and 2.099 billion yuan respectively, with growth rates of 106673%, 20.78% and 21.51% respectively. At present, the corresponding PE of the stock price is 11.90, 9.89 and 8.16 times respectively, maintaining the "recommended" rating.
Risk tip: the recovery of real estate sales was less than expected, the price of raw materials fluctuated sharply, and the epidemic situation exceeded expectations.
