\u3000\u3 Shengda Resources Co.Ltd(000603) 833 Oppein Home Group Inc(603833) )
Event: the company released the first quarterly report of 2022, with an operating revenue of 4.144 billion yuan, a year-on-year increase of + 25.60%; The net profit attributable to the parent company was 253 million yuan, a year-on-year increase of + 3.88%; Deduct 234 million yuan of non return to parent, a year-on-year increase of + 11.99%.
Retail sales grew faster than expected, and bulk commodities were mainly stable. From the perspective of revenue channels, the retail business revenue was 3.346 billion yuan, a year-on-year increase of + 34.66%; The revenue from bulk business was 673 million yuan, a year-on-year increase of – 6.98%. The company’s retail business grew faster than expected in the first quarter: 1) among them, the packaged business maintained rapid growth and achieved revenue of about 400 million, an increase of about 77% at the same time; 2) Category expansion: the wardrobe business has the advantages of scale and brand. Based on this, the whole family launched customized packages in the first quarter to promote the increase of wardrobe and supporting facilities by more than 40%; 3) Positioned as a young brand, the revenue of opelli exceeded 300 million yuan, with a year-on-year increase of about 46%. In terms of bulk business, the real estate credit risk has not decreased. The company focuses on stabilizing and controlling the risk, and controls the risk through agent mode and strict customer screening. At the same time, the company infiltrates the whole hardcover business and develops national supporting projects to expand business on the premise of ensuring the safety of remittance.
Wardrobe and supporting facilities grew rapidly, and the big home strategy was promoted smoothly. In terms of income categories, 1) the business income of wardrobe and supporting furniture and household products was 2.320 billion yuan, a year-on-year increase of + 40.85%; 2) Cabinet business income was 1.324 billion yuan, a year-on-year increase of + 5.13%; 3) The business income of bathroom and wooden door was 167 million yuan and 218 million yuan, with a year-on-year increase of + 1.19% and + 32.30%. In terms of wardrobe and supporting facilities, the company has expanded its business in multiple channels, upgraded the whole house customization to the whole customization, and formed a stronger competitiveness with rich optional categories, promoting the increase of wardrobe and furniture products by 35% and 50% respectively. In terms of cabinets, the company seized the opportunity of the retail end after the bulk slowdown and actively expanded channels and categories. It is estimated that the retail business of cabinets will increase by more than 10% year-on-year, which will drive the overall positive growth of cabinets when the bulk market goes down. Wooden doors benefit from the pull of multi-channel development, maintain high growth, and continue to improve the brand strength of opelni; Bathroom stores maintained growth, and continued to explore the whole decoration and bulk channels. Based on the basic sectors of cabinets, wardrobe and other categories, the company continues to promote the big home strategy and open the space for future development.
Under the pressure of rising prices of raw materials, the net interest rate decreased slightly. The gross profit margin of the company in 2021 was 27.66%, with a year-on-year increase of -2.53pct, mainly due to the rise of raw material prices and the change of product structure. The price of main raw materials is basically stable this year, and the impact on gross profit margin is controllable. The increase in the proportion of supporting products lowers the overall gross profit margin. However, due to the low demand for marketing expenses, the change of product structure has little impact on the net profit margin. The company’s sales expense ratio / management expense ratio are -0.55pct / -0.30ct respectively, and the expense control ability is still strong. Overall, the non net interest rate deducted in 2022q1 was 5.63%, with a year-on-year increase of -0.68pct.
Profit forecast and investment rating: we are optimistic that the company will promote the big home strategy based on the advantageous category of cabinets and wardrobe, continue to drive the rapid development of other categories and promote the continuous growth of the company. It is estimated that the net profit attributable to the parent company from 2022 to 2024 will be RMB 3.136, 3.698 and 4.365 billion respectively, and the EPS will be RMB 5.15, 6.07 and 7.17 respectively. At present, the corresponding PE of the stock price is 23.51, 19.94 and 16.90 times respectively, maintaining the “recommended” rating.
Risk tip: the epidemic situation exceeded expectations, and the price rise of raw materials exceeded expectations
