\u3000\u3 China Vanke Co.Ltd(000002) 043 Dehua Tb New Decoration Material Co.Ltd(002043) )
Event:
2021 annual report: in 2021, the revenue was 9.426 billion yuan, a year-on-year increase of + 45.78%, the net profit attributable to the parent was 712 million yuan, a year-on-year increase of + 76.70%, and the net profit attributable to the parent after deduction was 582 million yuan, a year-on-year increase of + 39.66%. Among them, in the fourth quarter alone, the revenue was RMB 3.11 billion, a year-on-year increase of + 18.43%, and the net profit attributable to the parent was RMB 188 million, a year-on-year increase of – 10.29%, and RMB 197 million, a year-on-year increase of + 10.57%. In 2021, the gross profit margin of sales was 17.70%, with a year-on-year increase of -1.27pct; The net interest rate was 7.82%, with a year-on-year increase of + 0.96pct.
The first quarter report of 2022: the revenue in the first quarter was 1.627 billion, a year-on-year increase of + 18.97%; The net profit attributable to the parent company was 95 million yuan, a year-on-year increase of – 7.71%; The net profit attributable to the parent company after deducting non-profit was 77 million, a year-on-year increase of + 8.06%; The gross profit margin of sales was 18.51%, with a year-on-year increase of + 2.08pct, and the net profit margin was 6.00%, with a year-on-year decrease of 1.59pct.
Comments:
(1) channel is the king and customized
By business: the business income of decorative materials was 6.582 billion, a year-on-year increase of + 51.45%, accounting for 69.83% of the revenue; The income of finished household products was 2.687 billion, a year-on-year increase of + 35.09%, accounting for 28.51%; Other business income was 157 million, a year-on-year increase of + 19.85%, accounting for 1.66%.
By product: 6.319 billion decorative materials, a year-on-year increase of + 53.41%; The brand use fee (including easy to wear) was 276 million, with a year-on-year increase of + 15.00% (of which the sector brand use fee (including easy to wear) was 263 million yuan, with a year-on-year increase of + 15.60%); 2.292 billion cabinets, a year-on-year increase of + 42.36%; Floor 372 million, year-on-year + 15.53%; Wooden doors were 39 million, a year-on-year increase of – 13.33%; The other 127 million, a year-on-year increase of – 3.05%.
The channel is the king, the small B force, and the decorative materials have a high growth: (1) nine branches have been established and carefully managed. By the end of 2021, the company has set up more than 1000 distribution and marketing outlets; (2) Retail stores continue to be laid. In 2021, 522 decorative material stores were added, including 287 decorative material stores and 235 easy to wear stores. At the end of the period, there were 2635 decorative material stores, including 797 easy to wear stores. (3) Small B channel has been continuously promoted, focusing on promoting dealers to develop furniture factory channels. The company and dealers have served about 5800 furniture factory customers. (4) The company simultaneously develops the channels of home decoration companies and engineering channels, and actively cultivates future growth points.
The customized home model is established, and the two wheel drive of retail + engineering: (1) create a “whole house customization + floor + wooden door” product system; (2) At the project end, Yufeng Hantang achieved a revenue of 1.894 billion, a year-on-year increase of + 31.23%, a net profit of 142 million and a performance bet of 140 million.
(2) performance of cost and gross profit margin: in 2021, the gross profit margin was 17.7%, year-on-year -1.27pct. By industry, the gross profit margin of decoration materials business was 13.68%, year-on-year -1.68pct; The gross profit margin of home customization business was + 0325.0% year-on-year. From the perspective of products, the gross profit margin of decorative materials was 10.13%, with a year-on-year increase of -0.62pct; Cabinet products accounted for 27.06%, with a year-on-year increase of + 0.09pct.
(3) expense performance during the period: in 2021, the sales expense rate was 3.42%, with a year-on-year rate of -0.35pct, and the sales expense was + 32.37%, and the social security expense recovered after the epidemic. The management expense ratio was 3.53%, with a year-on-year increase of + 0.55pct and a year-on-year increase of + 72.36%. Among them, the equity incentive fee was 101 million yuan, a year-on-year increase of + 96 million yuan, accounting for 30.46%. Excluding the impact of equity incentive expenses, the management expenses are + 23.30% year-on-year, accounting for 2.45% of revenue, and -0.45pct year-on-year in the same caliber. The financial expense ratio was 0.42%, with a year-on-year ratio of -0.6pct and a year-on-year ratio of -40.29%, mainly due to the repayment of some M & A loans, the corresponding reduction of interest payment and the reduction of factoring expenses of subsidiaries. Short term loans at the end of the period amounted to 810 million, compared with 737 million at the end of last year; The long-term loan is 60 million yuan and the opening loan is 240 million yuan. The main factor is the repayment of M & A loans by the company. The asset liability ratio was stable at 60%.
(4) notes on customs declaration in the first quarter include: 2022q1 management expenses + 65.04% year-on-year, mainly due to the provision of equity incentive expenses + 24 million yuan year-on-year; The investment income was – 7.86 million yuan year-on-year, with a year-on-year increase of – 39.76%, mainly due to the year-on-year decrease in the transfer income of investment projects and financial management income; Credit impairment loss was + 3.8 million yuan year-on-year, + 263.73%; The income from changes in fair value was – 24 million yuan year-on-year, with a year-on-year increase of – 100.00%, mainly due to the year-on-year decrease in the profit and loss from changes in fair value of natural equity.
Investment suggestion: we expect the net profit attributable to the parent company from 2022 to 2024 to be 820 million yuan, 1 billion yuan and 1.36 billion yuan respectively. On April 29, the corresponding dynamic PE of the stock price was 9, 7 and 5 times respectively, maintaining the “recommended” rating.
Risk warning: the operation mechanism and channel expansion of the branch are not as expected; Risks of real estate policy regulation.
