\u3000\u3 Shengda Resources Co.Ltd(000603) 801 Zbom Home Collection Co.Ltd(603801) )
Performance summary: the company released the annual report of 2021 and the first quarterly report of 2022. In 2021, the company achieved a revenue of 5.15 billion yuan, a year-on-year increase of 34.2%, and a net profit attributable to the parent company of 510 million yuan, an increase of 27.8%; Among them, Q4 revenue increased by 24.7% and net profit attributable to parent increased by 3.9%. In 2022, Q1 achieved a revenue of 760 million yuan, a year-on-year increase of 11.2%, and a net profit attributable to the parent company of 50 million yuan, a year-on-year increase of 1.4%. The overall growth was stable.
The rise in the price of raw materials has put pressure on profitability, and the cost control has been continuously optimized. In 2021, the company’s overall gross profit margin was 36.2%, a year-on-year decrease of 1.8pp, and the H1 / H2 gross profit margins were 37% / 35.8% respectively. The decline in gross profit margin was mainly affected by the rise in raw material prices. The company optimized the customer structure of bulk business through the superposition of supply chain management. By category, the gross profit margin of customized cabinets was 40.5%, a year-on-year decrease of 1.3pp; The gross profit margin of customized wardrobe was 34.4%, with a year-on-year increase of 1pp; The gross profit margin of wooden doors was 13%, a year-on-year decrease of 2.9pp. During the 21 years, the expense rate was 24.5%, with a year-on-year decrease of 1.8pp, of which the sales expense rate / management expense rate / R & D expense rate / financial expense rate were 14.7% / 4.5% / 5.5% / – 0.1% respectively, with a year-on-year decrease of -0.3pp / – 0.9pp / – 0.4pp / – 0.2pp respectively. The company’s expense control was further optimized. Under the comprehensive impact, the company’s net profit margin for 21 years was 9.8%, down 0.5pp year-on-year, and remained stable as a whole. In 21 years, the company’s contract liabilities were 530 million yuan, a year-on-year increase of 14.3%, and the order reserve was still relatively sufficient.
High growth of main business and excellent payment collection ability. In 21 years, the company’s distribution business achieved a revenue of 2.75 billion yuan, accounting for 56.6% of the revenue, with a year-on-year increase of 29.6%; The revenue of direct business was 320 million yuan, accounting for 6.6% of the revenue, with a year-on-year increase of 40%; The revenue of bulk business reached 1.65 billion yuan, accounting for 34%, with a year-on-year increase of 40.6%. The company vigorously expanded high-quality strategic cooperative real estate customers, and the top 100 real estate customers accounted for 34%. In addition, in the past 21 years, the company strengthened the management of accounts receivable and further improved the risk control system. The notes and accounts receivable were 260 million yuan, a year-on-year decrease of 21.1%, which decreased significantly for two consecutive years, reflecting the excellent risk control ability.
The expansion of stores was accelerated, and the performance of all categories was brilliant. In 2021, the company opened 510 stores in total, with a stock of 3742. The expansion speed of stores has been accelerated, driving the rapid growth of businesses in all categories. Specifically, in 21 years, the company’s cabinet business revenue was 2.94 billion yuan, accounting for 56.9% of the main revenue, with a year-on-year increase of 17.6%. There were 115 net stores and 1691 stock stores. The wardrobe achieved a revenue of 1.76 billion yuan, accounting for 34.2% of the main revenue, with a year-on-year increase of 54.3%. There were 253 net stores and 1619 stock stores. Mumen focuses on developing business channels of fine decoration projects, signing 13 real estate strategic contracts, signing batch projects with a contract amount of more than 100 million yuan, and the performance of all categories is brilliant.
Profit forecast and investment suggestions. It is estimated that the EPS from 2022 to 2024 will be 1.94 yuan, 2.34 yuan and 2.8 yuan respectively, and the corresponding PE will be 11 times, 9 times and 7 times respectively, maintaining the “buy” rating.
Risk tip: the risk of sharp fluctuations in raw material prices, the risk of terminal sales falling short of expectations, and the risk of fluctuations in real estate policies.
