\u3000\u3000 Oppein Home Group Inc(603833) (603833)
The company issued a performance pre increase announcement. It is expected to achieve a revenue of 19.899-21.373 billion yuan in 2021, a year-on-year increase of + 35-45%; The net profit attributable to the parent company was RMB 2.64-2.846 billion, a year-on-year increase of + 28-38%; Deduct the net profit not attributable to the parent company of RMB 2.477-2.671 billion, a year-on-year increase of + 28-38%.
The packaged home business is developing rapidly, and the business model continues to evolve iteratively.
In 2018, the company took the lead in proposing the integrated mode in the industry and began to promote the pilot. After polishing and optimizing the business model of European style packaged large home, it will be rapidly expanded in 2021. As of the third quarter of the year, the company has opened nearly 700 decoration stores, with agents covering nearly 600 cities. As of November 5, 2001, the total performance of the European Group in receiving orders has exceeded 2 billion, with a growth rate of 104%, which has doubled in less than four months since the performance exceeded 1 billion in July 21.
The company has rich product matrix and strong supply chain integration ability, which can effectively make up for the shortcomings of the home decoration company in terms of products and provide landing support for the integrated decoration scheme; At the same time, thanks to the excellent cost control ability and scale effect, European style products have high cost performance and strong attraction to end consumers, which can effectively solve the difficulties faced by traditional home decoration companies in obtaining customers and low transaction rate.
The increase in the price of raw materials leads to pressure on the gross profit margin, and the negative impact is reduced by improving the level of fine management.
Under the pressure of rising prices of raw materials, the company obtains greater bargaining space by increasing procurement volume through centralized procurement and capital advantages, so as to ensure the relative stability of manufacturing costs. By strengthening internal control, such as improving material utilization rate, reducing rework rate, improving inventory turnover, etc., we can obtain benefits from all internal links and reduce the adverse impact of the rise of raw materials. In July 21, the company raised the price of self-made products by 1%. We believe that most of the cost pressure is digested by the company, giving priority to end consumers.
The dual leading position of cabinets and wardrobe has been established, and the layout of all categories and multiple brands has helped long-term growth.
The company started with cabinets and promoted the rapid growth of wardrobe business with the sales model of customized core + supporting products + door wall system. As of the first three quarters of the 21st century, the revenue of cabinets / wardrobe had reached RMB 5.395/5.736 billion respectively, with a year-on-year increase of + 30.63% / + 50.53% respectively. The scale of wardrobe has exceeded that of cabinets. Bathroom / wooden door / other products maintained a high growth trend. In the first three quarters of the 21st century, the revenue was RMB 693 / 837 / 1599 million respectively, a year-on-year increase of + 38.11% / + 72.49% / + 125.94%. By the end of the third quarterly report of the year, there were 7461 stores in total, including 2430 oupai cabinets, 2225 wardrobe, 1156 oppeni wooden doors, 703 sanitary ware and 947 oppeni. The brand matrix is perfect. The high-end brands have pinnacle, and the medium and high-end brands have europay, Pinnacle wooden doors and windows. Europelle is positioned as young and fashionable, and the layout of all categories and multiple brands contributes to long-term growth.
Profit forecast and rating: the company started from the overall kitchen cabinet business. After years of continuous product expansion, it has become a comprehensive customized home provider integrating kitchen cabinets, wardrobe, bathroom and customized wooden doors. We are optimistic about the long-term industry penetration and the increase of the market share of leading companies. It is estimated that the net profit attributable to the parent company of 21-23 companies is RMB 2.747/31.96/3.714 billion respectively, with a year-on-year increase of + 33.19% / + 16.36% / + 16.18%, and the corresponding PE is 33x / 28x / 24x respectively, maintaining the “buy” rating.
Risk warning: the performance forecast data is only preliminary accounting data, and the accurate financial data shall be subject to the annual report; Property delivery is less than expected; Price fluctuation risk of raw materials; The promotion of Omni channel layout is less than expected; Industry competition intensifies.
