\u3000\u3 Shengda Resources Co.Ltd(000603) 833 Oppein Home Group Inc(603833) )
Key investment points
Revenue growth exceeded our expectations. The company achieved an operating revenue of 4.144 billion yuan in 2022q1, 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%; The net profit attributable to the parent company after deduction was 234 million yuan, a year-on-year increase of + 11.99%. The decrease of non recurring profit and loss mainly includes: the increase of loss on disposal of non current assets, the decrease of government subsidies and the decrease of investment income.
Wardrobe provides a strong driving force for growth, and retail channels grow strongly. By product, wardrobe and accessories are the core growth driving force. In 2022q1, the income of wardrobe and accessories was 2.32 billion yuan, a year-on-year increase of + 40.85%; The revenue of cabinet products was 1.32 billion yuan, a year-on-year increase of + 5.13%; The income of sanitary ware was 167 million yuan, a year-on-year increase of + 1.19%; The revenue of wooden doors was 218 million yuan, a year-on-year increase of + 32.29%. By channel, retail channels performed well, while bulk channels declined slightly. The distribution channel revenue was 3.22 billion yuan, a year-on-year increase of + 34.1%; The revenue from bulk channels was 673 million yuan, a year-on-year increase of – 6.98%. In terms of the number of stores, at the end of 2022q1, the number of stores of oupai cabinet, oupai wardrobe, ouboli, oupai bathroom and ouplatini wooden door is 1449, 2143, 974, 810 and 1022 respectively, with a total number of 7398 stores.
The rise in costs and the increase in the proportion of supporting products led to a year-on-year decrease in gross profit margin. 2022q1 comprehensive gross profit margin was 27.7%, year-on-year -2.26pp; The gross profit margin of cabinet was 30.46%, with a year-on-year increase of -1.21pp; The gross profit margin of wardrobe and supporting furniture products was 28.58%, with a year-on-year increase of -2.35pp; The gross profit margin of sanitary ware was 20.35%, with a year-on-year increase of -1.4pp; The gross profit margin of wooden doors was 10.08%, with a year-on-year increase of -1.46pp. During the period, the expense rate increased from -1.52pp to 20.41% year-on-year; Among them, the sales expense ratio is – 0.55pp to 9.13%; The management expense rate (including the R & D expense rate of 4.94%) increased from -0.44pp to 12.06% year-on-year; The financial expense ratio increased from -0.52pp to -0.78% year-on-year. The net profit margin on sales rose from -1.31pp to 6.08% year-on-year.
The turnover days of inventory and accounts receivable increased. The net operating cash flow in 2022q1 was – 324 million yuan (2021q1 was – 224 million yuan), which was mainly affected by the decrease in the amount of accounts payable. In terms of operating efficiency, the days of inventory turnover increased by 8 days to 41 days year-on-year; The turnover days of accounts receivable increased by 5.4 days to 21.9 days year-on-year.
Profit forecast and investment rating: maintaining the previous profit forecast, we predict that the net profit attributable to the parent company from 2022 to 2024 will be 3.08 billion yuan, 3.63 billion yuan and 4.25 billion yuan respectively, corresponding to pe22, 19 and 16x. The leading advantages of the company are continuously consolidated, the valuation has a safety margin, and the “buy” rating is maintained.
Risk tips: rising raw material prices, intensifying industry competition, decline in real estate sales, etc.
