\u3000\u3000 Xlinmen Furniture Co.Ltd(603008) (603008)
Event:
The company issued the announcement of performance increase in 2021: in 2021, the company realized a net profit attributable to the parent company of 550-560 million yuan, a year-on-year increase of 75.49% – 78.68%, deducting 495-505 million yuan of non net profit, a year-on-year increase of 57.95% – 61.14%. In Q4, the company realized a net profit attributable to the parent company of 176-186 million yuan, a year-on-year increase of 32.33% – 39.85%, deducting 170-180 million yuan of non net profit, a year-on-year increase of 16.44% – 23.29%.
Comments:
We are optimistic about the continuous development of independent brands and the continuous improvement of performance contribution. In 2021, the independent brand retail business of q1-q3 company increased by 85% year-on-year, and Q4 is expected to increase by more than 30% year-on-year, with continued high growth in revenue. The company continues to increase investment in the brand side. Relying on strong product power and channel power, the brand influence is gradually established. In the future, with the continuous development of independent brand business, it is expected to release more performance contributions.
The category extends the layout of guest sleeping space, and the rapid growth is driven by all channels. The company started its mattress business, and its products have been extended to soft beds and sofas to realize the layout of guest sleeping space. The revenue contribution of soft beds and sofas has gradually increased. The revenue of 21q1-q3 mattresses, soft beds, sofas and wooden furniture accounts for about 49%, 34%, 13% and 4% respectively. On the channel side, the company implements offline distribution, bulk and online diversified channel layout. By the end of 21q3, the company had 4296 stores, a net increase of 653 compared with the end of 20. It is estimated that 800-1000 stores will be added in 2021. In the future, the company will continue to exhibit stores, and with the improvement of the same store, drive the steady growth of performance.
It is estimated that the company’s EPS from 2022 to 2023 will be 1.84 and 2.33 yuan respectively, and the corresponding PE will be 19.66 and 15.50 times respectively. Considering the accelerated expansion of the company’s channels, the expansion of categories, the continuous development of independent brands and the continuous improvement of market share, the company is given a “buy” rating.
Risk tip: the prosperity of real estate is lower than expected, and the business promotion is lower than expected.
