\u3000\u30 Shenzhen Quanxinhao Co.Ltd(000007) 85 Easyhome New Retail Group Corporation Limited(000785) )
Event: the company released its annual report for 21 years and realized an operating revenue of 13.07 billion yuan, an increase of 44.9% at the same time; The net profit attributable to the parent company was 2.33 billion yuan, an increase of 71.4% and the net interest rate attributable to the parent company was 17.8%; Deduct the net profit not attributable to the parent company of RMB 2.23 billion, an increase of 75.7% at the same time, and deduct the net interest rate not attributable to the parent company of 17.1%. In a single quarter, the operating revenue of 21q1 / Q2 / Q3 / Q4 was 33.4/32.6/31.7/3.3 billion yuan respectively, an increase of 39.1% / 111.9% / 37.5% / 18.9% at the same time; The net profit attributable to the parent company was 6.2/5.1/6.0/610 million yuan, an increase of 144.6% / 216.1% / 18.6% / 37.2%.
During the 21-year period, the cost rate was 22.4%, with an increase of 4.2pct. The rates of sales / management / R & D / financial expenses were 9.1% / 4.2% / 0.01% / 9.1% respectively, with a year-on-year change of – 2.8 / – 0.5 / + 0.01 / + 7.4pct respectively. Among them, the significant increase in financial expenses is mainly due to the implementation of the new leasing standards, and the interest expense of lease liabilities is included in financial expenses. In the past 21 years, the company spent more than 139 million yuan on R & D and operation related to digitization, made breakthroughs in digitization, and is committed to building a home decoration and home furnishing industry service platform with s2b2c mode in the digital era.
Leasing and its management business contributed to the main revenue, and the commodity sales business increased by 88.1% at the same time. In terms of sections, leasing and management business / commodity sales / franchise management business / decoration / loan factoring interest / other businesses achieved revenue of RMB 7.42/36.8/7.9/3.9/1.1/680 billion respectively, with a year-on-year change of + 22.7% / + 88.1% / + 39.6% / + 55.0% / – 27.5% / + 1467.7%. In 21 years, the operating income of directly operated home stores was 7.04 billion yuan, the average actual operating income per unit area was 1441.7 yuan, and the operating income per unit area increased by 17.6% at the same time.
Around the five service nodes, the whole link improves the linear service capability of home decoration in the whole life cycle. 1) At present, there are more than 1.1 million Chinese designers per square meter, more than 8.9 million overseas users, 4.68 million Chinese commodity model libraries, 2.2 million overseas commodity model libraries and 7.66 million case libraries. It has more than 90000 cooperative businesses, including large decoration companies; 2) The Gmv of the home retail industry service platform “Dongwo” exceeded 100 million yuan in 21 years. By the end of 21 years, the cumulative registered users had reached 2.17 million, covering 60 stores in 17 cities, with more than 10000 stores and 750000 monthly live users; 3) In 21 years, Beijing decoration company realized sales of 757 million yuan, a year-on-year increase of 57.2%; 4) In the past 21 years, the intelligent company achieved sales of 1.728 billion yuan, a year-on-year increase of 321.69%. 5) In 21 years, smart IOT fully completed the construction and acceptance of phase I of Tianjin Baodi smart logistics park, and opened in December.
Profit forecast and rating: considering the intensification of terminal competition under the trend of flow decentralization, we lowered the net profit of the company from 2.94/3.47 billion yuan to 2.79/3.19 billion yuan in 22-23 years, an increase of 19.9% / 14.5% at the same time. Referring to the valuation of comparable companies, we give the company 15 times PE valuation in 22 years, reduce the target price by 50% to 6.4 yuan (originally 12.75 yuan, based on 25 times P / E ratio in 2021), and give the rating of “better than the big market”.
Risk tip: the epidemic situation is repeated, the terminal demand is less than expected, the real estate cycle is down, the risk of flow diversification, and the expansion of new business is less than expected
