\u3000\u3000 Oppein Home Group Inc(603833) (603833)
The company announced the performance forecast for 2021. The company achieved an annual revenue of 19.899-21.373 billion yuan, with a year-on-year increase of 35% – 45%, and the net profit attributable to the parent company was 2.640-2.846 billion yuan, with a year-on-year increase of 28% – 38%. The performance was in line with expectations. Under the background of the slowdown of real estate growth, the company still maintained a steady high growth momentum and maintained the buy rating by relying on multi category, multi-channel, multi brand and multi strategic layout.
Key points supporting rating
Q4 maintained steady growth in a single quarter, with profit under pressure, and is expected to improve in 2022. Q4 single quarter reflects the strong growth toughness of the company. According to the median calculation, the company achieved a revenue of 6.234 billion yuan in Q4 in a single quarter, with a year-on-year increase of 24.47%, and maintained a high growth under the high base of Q4 in the same period in 2020. Q4’s net profit in a single quarter was 631 million yuan, an increase of 3.07% at the same time. The growth rate of net profit was lower than that of revenue, which was mainly caused by the rise of raw material prices and the decline of profits from bulk business channels. It is expected that with the peak of raw material prices and the company’s adjustment of product structure, the profitability is expected to rise in 2022.
Relying on the leading position of overall cabinet and whole house customization, accelerate the expansion. Although affected by the slowdown of real estate growth and other adverse effects, the company still maintained high growth against the trend with the leading position of cabinets and the rapid volume of wardrobe. In terms of cabinet business, the company has customized from a single kitchen to an integrated kitchen and living room, realizing the improvement of passenger flow and customer unit price. In terms of wardrobe business, by the end of the third quarter of 2021, the number of wardrobe stores of the company has reached 2225, with 101 newly added, which is in the stage of rapid expansion. At the same time, the wardrobe business has strengthened the combination of supporting products, doors and windows and software to achieve rapid growth. It is expected that the growth of the company’s two core businesses of cabinet and wardrobe will continue in 2022.
Optimistic about the company’s continued increase in the follow-up market share under the background of the slowdown in real estate sales. Industry pressure is a good opportunity for leading enterprises to accelerate the improvement of market share. The company gives full play to its unique advantages in marketing, channel and supply chain, and deepens the gradual transformation of channel operation and agents. In addition, the company vigorously develops the new customization mode of the whole company, which is expected to become a new growth point of the company in the future.
Valuation
Under the current share capital, the earnings per share from 2021 to 2023 are expected to be 4.50/5.52/6.64 yuan respectively; The P / E ratio is 31 / 26 / 21 times respectively. Maintain buy rating.
Main risks of rating
Industry competition intensifies, the expansion of new products does not meet expectations, and the price of raw materials fluctuates.
