\u3000\u3 Shengda Resources Co.Ltd(000603) 313 Healthcare Co.Ltd(603313) )
Event 1: Healthcare Co.Ltd(603313) issued the 2021 annual report. The company achieved a revenue of 8.139 billion yuan in 2021, an increase of 24.64% at the same time; The net profit attributable to the parent company was -276 million yuan, with a decrease of 172.78%; Deduct non net profit of RMB – 258 million, with a decrease of 173.84% at the same time. The decrease in net profit is mainly due to 1) the comprehensive impact of anti-dumping, raw material price fluctuation, overseas epidemic and so on; 2) The litigation of minority shareholders resulted in a significant increase in non operating expenses to 120 million yuan; 3) Q4 withdraw credit impairment loss. The annual mor consolidated income was 2.114 billion yuan, excluding the impact of consolidated income on the company’s endogenous income of 6.025 billion yuan, an increase of 20% at the same time. In a single quarter, 21q4 achieved a revenue of 2.029 billion yuan, an increase of 1.25% at the same time; Net profit attributable to parent company -95 million yuan; Deduct non net profit of – 194 million yuan.
Event 2: Healthcare Co.Ltd(603313) released the first quarterly report of 2022. In the first quarter of 2022, the company achieved a revenue of 2.143 billion yuan, an increase of 13.46% at the same time; The net profit attributable to the parent company was 31 million yuan, with a decrease of 44.23%, which was mainly affected by the high non operating income in the same period last year; Deduct non net profit of 28 million yuan, an increase of 48.13% at the same time; Cash flow from operating activities was – 107 million yuan, an increase of 7.44% at the same time.
Out of the dark moment, 22q1’s profit improved month on month and entered the repair channel. 1) In terms of profitability, the company achieved a gross profit margin of 28.47% (- 5.45pct.) in 2021, It is mainly due to the rise of freight and miscellaneous expenses and raw material prices, and the net interest rate attributable to the parent company is -3.31% (-9.69pct.); In the first quarter of 2022, the gross profit margin was 29.24% (+ 0.33pct.), The net interest rate attributable to the parent company is 1.65% (-1.82pct.). 2) In terms of period expenses, the sales expense rate in 2021 is 16.14% (+ 2.64 PCT.); The management fee rate is 8.16% (+ 1.11pct.); The R & D expense rate is 1.53% (-0.16pct.); The financial expense rate is 3.74% (-0.09pct.). While the company’s overseas plant construction and expansion have brought about a rise in sales, the sales expenses and management expenses have increased accordingly.
The growth rate of export sales has been repaired month on month, and the domestic sales are fast and large-scale. It is expected to continue to increase high in 2022. In 2021, the company’s export revenue was 6.727 billion yuan, an increase of 21.31% and the gross profit margin was 28.52% (- 5.98 PCT.). With the orderly ramp up of us production capacity, the company’s Q1 growth in North America accelerated. It is optimistic about the release of production capacity for a long time, driving the steady growth of export business. In 2021, the company’s domestic sales revenue was 1.185 billion yuan, an increase of 46.46% with a gross profit margin of 30.75% (- 1.21 PCT.). 22q1 domestic sales are under short-term pressure due to the impact of the epidemic, and the opening of stores in beneficiary channels is accelerated. Domestic sales throughout the year is expected to continue high growth.
The core products are steady, and the growth rate of new categories is beautiful. 1) Mattresses: in 2021, the revenue will reach 3.748 billion yuan, with an increase of 21.66% and a gross profit margin of 25.51% (- 7.14 PCT.). 2) Pillow: the revenue was 633 million yuan, an increase of 12.13% and the gross profit margin was 22.61% (- 5.49 PCT.). 3) Sofa: the income was 1.302 billion yuan, an increase of 33.56% and the gross profit margin was 36.30% (+ 1.01pct.). 4) Electric bed: the income was 761 million yuan, an increase of 15.46% and the gross profit margin was 31.04% (- 3.66 PCT.). 5) Bedding: the income was 797 million yuan, an increase of 51.99% and the gross profit margin was 45.03% (-0.61pct.). 6) Others: the income was 671 million yuan, with an increase of 21.86% and a gross profit margin of 17.23% (- 18.17 PCT.).
Investment suggestion: under the global operation, the company’s export production capacity efficiency is gradually improved, the domestic sales practice the independent brand cultivation strategy, focus on offline development, and the annual profit can be repaired. We expect that the company’s sales revenue from 2022 to 2024 will be RMB 10.042 billion, RMB 12.273 billion and RMB 14.66 billion, with a year-on-year increase of 23.4%, 22.2% and 19.5%, and the net profit attributable to the parent company will be RMB 359 million, RMB 556 million and RMB 807 million, with a year-on-year increase of 230.3%, 54.8% and 45.2%. EPS will be RMB 0.74, RMB 1.14 and RMB 1.66, which is rated as “overweight”.
Risk tips: the risk of shortage of raw materials and price fluctuation, the risk of sea freight and exchange rate fluctuation, the risk of repeated epidemic, and the risk of not updating the information and data used in the research report in time
