\u3000\u3 China Vanke Co.Ltd(000002) 572 Suofeiya Home Collection Co.Ltd(002572) )
Event overview
Suofeiya Home Collection Co.Ltd(002572) released the first quarterly report of 2022. In 2022q1, the company achieved a revenue of 1.999 billion yuan, a year-on-year increase of + 13.53%, and achieved rapid growth under the high base (21q1 + 130.50%); The net profit attributable to the parent company was 114 million yuan, a year-on-year increase of - 2.87%, and the net profit attributable to the parent company after deducting non current assets was 106 million yuan, a year-on-year increase of + 5.01%. The decrease in the net profit attributable to the parent company was mainly due to the year-on-year decrease of 08 million yuan in non recurring profits and losses in 22q1 (the investment income of non current assets / trading financial assets was - 03 / - 11 million yuan respectively). The company firmly promotes the strategic layout of "all channels, multi brands and all categories", and its internet light fashion brand milanna dealers and decoration channels continue to expand, with continuous growth in operating revenue; The profit side is affected by rising costs and increasing marketing expenses, and the growth rate is less than that of revenue. In terms of cash flow, the net cash flow from operating activities in 2022q1 was -283 million yuan (21q1-662 million yuan), a year-on-year increase of + 57.17%, mainly due to the higher proportion of dealer channel income compared with the same period of last year and better return of funds.
Revenue side: milanna brand channel continues to expand, and the decoration channel rises,
Compared with the company, the direct sales channels + 19t-2022t and retail channels accounted for 10.91% and 16.943% of the total sales channels + q1.3%, respectively; Among them, the revenue of bulk business was 330 million yuan, which was - 8.84% (21q1 + 226.16%) year-on-year under the high base in the same period last year. The company's bulk business channels were steadily promoted, the customer structure was continuously optimized, and the risk control of accounts receivable recovery and notes receivable was done at the same time; In terms of decoration business, 2022q1 company's dealer cooperative decoration enterprises superimposed direct signing decoration enterprises, with a revenue of 127 million yuan. The decoration and home decoration channels have moved forward to a high-speed development track and become a new growth point of the company. In terms of retail channel stores, as of 2022q1, the company has 1746 distributors (compared with the beginning of the year + 12) and 2571 exclusive stores (compared with the beginning of the year - 159) for " Suofeiya Home Collection Co.Ltd(002572) " cabinet customized products; Simi cabinet has 776 dealers (from the beginning of the year to 153) and 994 specialty stores (from the beginning of the year to 128); "Huahe" wooden door has 334 dealers (compared with the beginning of the year + 24) and 296 exclusive stores (compared with the beginning of the year + 31); Milanna, its internet light fashion brand, has 397 dealers (plus 37 compared with the beginning of the year) and 277 exclusive stores (plus 65 compared with the beginning of the year). In 2021, milanna business division achieved an operating revenue of more than 100 million yuan. In 2022, milanna continued to maintain the opening speed of stores, popularized customization with valuable products, helped the industry accelerate into the whole customization era, and achieved a revenue of 40.68 million yuan in 22q1.
Profit side: the gross profit margin decreased slightly, and the expense rate increased during the period.
The gross profit margin and net profit margin of 2022q1 company were 31.32% and 5.65% respectively, with a year-on-year increase of + 0.09pct and -0.90pct; The gross profit margin of the company was basically the same as that of the same period of last year, and the slight decline in net profit margin was mainly due to the increase of expense rate during the period; In terms of period expenses, the period expense rate of 2022q1 company was 23.96%, with a year-on-year increase of + 0.15pct, of which the sales expense rate, management expense rate, R & D expense rate and financial expense rate were 12.18%, 7.65%, 3.29% and 0.84% respectively, with a year-on-year increase of + 1.43pct, - 1.72pct, + 0.13pct and + 0.31pct respectively. The increase in sales expense rate is mainly due to the company's increasing investment in advertising and the increase in the salary of sales personnel; The slight increase in the financial expense ratio was mainly due to the increase in the company's Bank loan balance compared with the same period of the previous year and the increase in loan interest costs; The decrease in the management expense rate is due to the company's continued strengthening of budget management and the management and control of various management expenses.
Investment advice
The company continues to deepen the strategy of large home furnishing, deeply cultivate the traditional dealer channels, continuously integrate the company's resources, and cut into the passenger flow channel earlier through cooperation with the strong decoration enterprises across the country. The home decoration and decoration channels are moving towards a high-speed development track. The continuous expansion of milanna brand drives the rapid growth of the company's performance year-on-year. We are optimistic about Suofeiya Home Collection Co.Ltd(002572) future development space. We maintain the previous profit forecast. The company's revenue in 22-24 years is 121.60/138.20/15.927 billion yuan respectively; EPS in 22-24 years is 1.36/1.56/1.83 yuan respectively. Corresponding to the closing price of 18.77 yuan / share on April 27, 2022, PE is 15 / 13 / 11 times respectively, maintaining the "buy" rating.
Risk tips
1) the tightening of real estate policy has led to a decline in home demand. 2) Market competition intensifies and product pricing may be lowered.
