\u3000\u3000 Xlinmen Furniture Co.Ltd(603008) (603008)
The company issued a performance announcement. The performance in 2021 exceeded our expectations and maintained the “buy” rating
According to the performance announcement, in 2021, the company is expected to realize the net profit attributable to the parent company of 550-560 million yuan, with a year-on-year increase of 75.49% – 78.68%, and the net profit deducting non attributable to the parent company is expected to be 495-505 million yuan, with a year-on-year increase of 57.95% – 61.14%; It is expected that the net profit attributable to the parent company in 2021q4 will increase by 32.26% – 39.77% year-on-year, and the net profit excluding non attributable to the parent company will increase by 16.88% – 23.75% year-on-year, exceeding our expectations. In the future, we will continue to expand categories and channels and implement systematic sales to improve customer unit price and store efficiency. With the strong investment of the brand, the performance is expected to improve rapidly. We will raise the profit forecast for 2021 and maintain the profit forecast for 2022 and 2023 unchanged, It is estimated that the net profit attributable to the parent company from 2021 to 2023 will be RMB 550 / 722 / 953 million (formerly RMB 507 / 722 / 953 million), the corresponding EPS will be RMB 1.42/1.86/2.46, and the corresponding PE of the current stock price will be 25.5/19.4/14.7 times respectively, maintaining the “buy” rating.
Focus on retail business, outstanding performance of independent brands, and strategic adjustment of engineering business
In 2021, the retail business of independent brands completed rapid growth. The company established long-term strategic cooperation with Hongxing Red Star Macalline Group Corporation Ltd(601828) , Easyhome New Retail Group Corporation Limited(000785) and other large household stores, increased the area of stores, promoted the rapid expansion of stores, carried out multi category integration, increased systematic sales, improved the joint rate of products and improved store efficiency; Online in-depth cooperation with tmall, jd.com, Suning and other platforms, leading the industry in sales volume in e-commerce marketing activities. The engineering business has been strategically adjusted, the scale has been gradually reduced, the OEM OEM business has increased steadily, and the OEM business in China has increased rapidly.
Deeply cultivate the sleep economy and jointly promote the share of brands, products and channels
The retail business of independent brands leads at a high speed, explores a variety of new forms at the brand side, Wuxi Online Offline Communication Information Technology Co.Ltd(300959) makes efforts at the same time, and covers all kinds of consumer groups in an all-round and multi platform way. The company increases brand investment, names large-scale variety shows, signs up well-known artists, improves brand strength and deepens sleep economic marketing; On the product side, the company cooperates with internationally renowned designers to set up an international R & D center, continue to upgrade product design with medium and high-end as the core, launch low price products to sink into the market below the township, create a diversified product matrix, and create a multi series combination from bedroom to guest restaurant at the same time; On the channel side, we will continue to focus on the traditional channels of furniture and building materials, and the main series and Ximian will work at the same time. In the future, with the continuous renewal of stores and the increase of the proportion of large stores, the profitability of traditional channels is expected to be further improved. At the same time, the company will extend to Ka channels, community stores and home decoration integration stores, deeply develop and update the consumer market, and more accurately grasp the needs of customers at the front end, We will continue to vigorously develop live broadcast channels online, and multi-dimensional drainage enables retail.
Risk tip: raw material price rise risk, production capacity is less than expected, demand is less than expected.
