\u3000\u3 Shengda Resources Co.Ltd(000603) 898 Guangzhou Holike Creative Home Co.Ltd(603898) )
Event: Guangzhou Holike Creative Home Co.Ltd(603898) released the annual report of 2021 and the first quarterly report of 2022. In 2021, the company achieved an operating revenue of 3.371 billion yuan, a year-on-year increase of 54.40%; The net profit attributable to the parent company was 65 million yuan, a year-on-year decrease of 76.35%; The net profit attributable to the parent company after deducting non-profit was 39 million yuan, a year-on-year decrease of 83.94%. In 2021q4, the company realized an operating revenue of 942 million yuan, an increase of 21.25% year-on-year; Net profit attributable to parent company -169 million yuan; The net profit attributable to the parent company after deducting non-profit is -177 million yuan.
In addition, in the first quarter of 2022, the company achieved an operating revenue of 615 million yuan, a year-on-year increase of 8.35%; The net profit attributable to the parent company was 41 million yuan, a year-on-year increase of 3.87%; The net profit attributable to the parent company after deduction was 35 million yuan, with a year-on-year increase of 4.06%.
The big home strategy was steadily promoted, and the extended categories maintained high growth
The company continues to promote the big home strategy, and gradually expand products such as cabinets, wooden doors and finished products from wardrobe, so as to meet the one-stop shopping needs of consumers in all categories. In 2021, the proportion of large household orders of the company increased steadily, and the retail customer unit price continued to maintain a growth rate of more than 10%, becoming one of the main drivers of the company's performance growth. By category, 1) the overall wardrobe achieved a revenue of 2.037 billion yuan in 21 years, with a year-on-year increase of 16.22%, mainly due to the company's active promotion of product upgrading and new product listing. 2) Cabinet products achieved a revenue of 210 million yuan in 21 years, with a year-on-year increase of 52.55%, mainly due to the company's implementation of the big home strategy and increasing cabinet marketing activities. 3) Wooden door products achieved a revenue of 845 million yuan in 21 years, with a year-on-year increase of 653.81%. The company consolidated QianChuan, Hubei, and increased wooden door marketing activities to promote the development of the whole category. 4) The revenue of finished supporting products reached 136 million yuan in 21 years, with a year-on-year increase of 54.23%. Under the big home strategy, the promotion of the whole house concept has achieved results. 5) The door and window business achieved a revenue of 61 million yuan in 21 years, with a year-on-year increase of 29.57%, and the orders of door and window business increased steadily.
Retail + engineering channel two wheel drive, deepening management in all channels
From the perspective of different channels, in 2021, the company's distribution, bulk business and direct sales realized revenue of 2.461 billion yuan / 740 million yuan / 82 million yuan respectively, with a year-on-year increase of 26.63% / 499.48% / 23.99%. Specifically, 1) in terms of retail business, the company promotes the establishment of all-channel traffic grabbing, constructs a brand matrix suitable for high, medium and low consumption levels, outputs the urban operation platform mode in batch, shares the urban operation pressure, and continuously empowers dealers relying on the digital system. At the same time, the company has actively laid out channels such as bag carrying, personalized home decoration, art decoration, new retail and foreign trade to help the overall sales growth. 2) In terms of bulk business, the company benefited from the high growth achieved in QianChuan, Hubei Province. The company accrued credit impairment losses and asset impairment losses for some real estate enterprises, resulting in a sharp year-on-year decline in the company's net profit attributable to the parent company in 21 years. With the core of state-owned enterprises and the subsidiary of state-owned enterprises, we have continuously optimized the risk management and control structure of state-owned enterprises and private enterprises.
22q1's profitability rebounded month on month, and the expense rate was well controlled during the period
In 21 years, the company's comprehensive gross profit margin was 33.94%, with a year-on-year decrease of 2.76 PCT, which was mainly due to the company's increasing support for dealers and profit making terminals, and the rapid increase in the proportion of low gross profit products. 22q1 company's comprehensive gross profit margin was 35.77%, with a year-on-year increase of 3.09pct and a month on month increase of 1.83pct, and its profitability improved.
In terms of period expenses, the period expense rate of the company in 21 years was 20.99%, with a year-on-year decrease of 1.91pct, and the sales / management / R & D / financial expense rate was 9.47% / 5.49% / 4.87% / 1.16% respectively, with a year-on-year increase of -1.42 / - 0.71 / + 0.14 / + 0.09pct respectively. The increase of financial expense rate was mainly due to the loan interest paid by the subsidiary Hubei QianChuan. The expense rate of 22q1 company during the period was 23.54%, with a year-on-year increase of 1.90pct. Under the comprehensive influence, the net interest rate of the company was 0.05% in 21 years, with a year-on-year decrease of 12.30 PCT, mainly due to the company's provision for credit impairment loss of 210 million yuan and asset impairment loss of 29 million yuan. 22q1's net profit margin was 8.90%, down 1.28pct year-on-year.
Investment suggestion: the company deepens the management through all channels, and the "retail + engineering" two wheel drive continues to promote the big home strategy. We estimate that Guangzhou Holike Creative Home Co.Ltd(603898) from 2022 to 2024, the operating revenue will be 3.886 billion yuan, 4.453 billion yuan and 4.948 billion yuan, with a year-on-year increase of 15.28%, 14.59% and 11.12%; The net profit attributable to the parent company was RMB 351 million, RMB 398 million and RMB 458 million, with a year-on-year increase of 437.47%, 13.39% and 15.08%. The corresponding PE was 7.9x, 6.9x and 6.0x, and the investment rating of Buy-A was given.
Risk warning: raw material price fluctuation risk; Risk that the growth of product demand is less than expected; The risk of intensified industry competition; The risk of recurrent outbreaks.
