\u3000\u3 Shengda Resources Co.Ltd(000603) Guanghui Logistics Co.Ltd(600603) 600)
The company released the 21st Annual Report and the first quarterly report of 22 years. In the whole year of 21 years, the revenue was 4.659 billion yuan, with a year-on-year increase of + 35.67%, of which Q1-Q4 achieved revenue of 1.066/13.38/10.52/1.203 billion yuan in a single quarter, with a year-on-year increase of + 148.25% / + 68.97% / – 4.52% / + 8.27% respectively. The revenue in the fourth quarter accelerated. In the 21st year, the company realized a net profit attributable to the parent company of 181 million yuan, a year-on-year increase of – 22.01%, of which Q1-Q4 achieved a single quarter of 0.55/0.59/0.47/0.21 million yuan, a year-on-year increase of + 90.46% / – 22.34% / – 54.31% / – 18.28%. In 21 years, the net profit attributable to the parent company after deducting non-profit was 139 million yuan, a year-on-year increase of – 29.73%. 22q1 company achieved a revenue of 1.008 billion yuan, a year-on-year increase of – 5.46%, a net profit attributable to the parent company of 47 million yuan, a year-on-year increase of – 13.55%, and a net profit attributable to the parent company of 44 million yuan, a year-on-year increase of + 2.96%.
The leading style of office chairs is fully displayed, and the export market share of the company has increased from 5.4% in 19 years to 9.4% in 21 years.
In 2021, the export volume of functional office chairs (rotating seats with adjustable height under customs code 940130) was 33.319 billion yuan, a year-on-year increase of + 20.2%. In December 2021, the export volume reached 2.758 billion yuan per month, a year-on-year increase of – 23.7%. Under the influence of the overseas epidemic, home office has become a new trend. In 21 years, the company’s office chair business realized an income of 3.14 billion yuan, accounting for 9.4%, significantly higher than 5.4% in 2019.
New products were launched in the field of “sitting health”, the sales of independent brands continued to increase by + 70.36% year-on-year, and the price increase under the pressure of raw materials has been implemented one after another. By product, in 2021, the company’s office chair / sofa / massage chair body achieved revenue of RMB 3.136/9.67/403 billion respectively, with a year-on-year increase of + 32.96% / + 47.07% / + 37.97%. In terms of office chair business, new product development focuses on household office chairs and E-sports chairs for retail channels. In order to cope with the rise of sea freight and solve customer pain points, multiple KD (removable) structure office chairs and sofas are developed to reduce product volume and reduce logistics costs. With the rise of raw materials, the company has had two rounds of price adjustment in 21 years, and implemented the new price in the third and fourth quarters. We strengthened the development of Wuxi Online Offline Communication Information Technology Co.Ltd(300959) channels in China. In the past 21 years, the income of independent brands outside China reached 362 million yuan, a year-on-year increase of + 70.36%, and that of non private brands reached 4.263 billion yuan, a year-on-year increase of + 33.29%. In 21 years, the domestic sales revenue was 917 million yuan, with a year-on-year increase of + 26.11%, and the gross profit margin was 21.33%, with a year-on-year increase of -1.8pct.
The market goal of “one of the best” has achieved initial results, the advantages of overseas production capacity have been highlighted, and the market share has been further improved. In the 21st year, the export sales revenue reached 3.708 billion yuan, a year-on-year increase of + 38.18%. Focusing on the market goal of “one of the best” in the two dimensions of regional market and key customer share, the company has deeply explored the value of existing key customers, and opened up a number of key customers in retail channels such as Europe, Australia and Latin America in 21 years. At the same time, the sales share of sofa business in European and American markets has increased significantly, becoming an important growth point. In terms of production capacity layout, Vietnam phase II base and China’s 2.5 million sets of ergonomic health seat projects are gradually put into operation. Vietnam promoted local procurement of raw materials and gradually realized self-made production, injection molding and sponge. In June 21, Vietnam covid-19 pneumonia broke out. The company organized closed production and quickly restored production capacity in Q4. The annual sales revenue was + 51.81% year-on-year. In addition, the base construction in Romania is gradually advancing, helping to explore European and other overseas markets.
22q1 gross profit margin increased month on month, raw material prices continued to rise sharply, RMB continued to appreciate, and profitability was under pressure in the short term. In 21 years, the gross profit margin of the company was 14.64%, year-on-year -4.54 PCT, and the net profit attributable to the parent company was 3.89%, year-on-year -2.88 PCT. The annual sales / management / R & D / financial expense ratio in the year of 21 was 3.46% / 3.14% / 3.42% / 0.89% respectively, with a year-on-year increase of + 0.58 / – 0.07 / + 0.06 / – 1.42pct respectively. Due to the growth of cross-border e-commerce business in the year of 21, the sales expense investment increased. The gross profit margin of 22q1 company was 16.65%, year-on-year + 1.69pct, and the net profit attributable to the parent company was 4.69%, year-on-year -0.44%. The sales / management / R & D / financial expense rates of 22q1 were 3.14% / 4.35% / 3.61% / 0.87%, year-on-year -1.44 / + 0.72 / + 1.35 / + 0.51pct respectively.
Profit forecast and rating: the company’s core export customers are stable, continues to explore new customers in overseas markets, deeply cultivates major domestic customers, expands online e-commerce platforms and live broadcast channels, and promotes offline channel construction. We are optimistic about the long-term development of the company. Considering the upward impact of raw material prices, we expect the net profit attributable to the parent company on 22 / 23 to be RMB 264 / 338 million (originally expected to be RMB 312 / 414 million), with a year-on-year increase of 45% / 28%, The corresponding PE in 22 / 23 years is 9x / 7X respectively, maintaining the “overweight” rating.
Risk tips: rising raw material prices, technological innovation risks, insufficient market demand in downstream industries, intensified market competition, intensified trade frictions, patent litigation risks, etc;
