The performance continued to repair, and 21H1's home net profit increased by 90.4% compared with the same period last year.
According to the company's mid-2021 report, 2021H1's revenue increased by 40.3% year-on-year to 3.563 billion yuan, and its net profit increased by 90.4% year-on-year to 302 million yuan. Of this total, Q2 achieved an income of 2.154 billion yuan per quarter, an increase of 20.6 percent over the same period last year, and a net profit of 231 million yuan, an increase of 7.8 percent over the same period last year. The company's floor business and plate business continue to repair, we estimate that the company's 2021-2023 return net profit is 7.77,8.24,926 million yuan, corresponding to EPS 1.42,1.51,1.69 yuan, reference comparable company Wind consistent expectation of 2021 15 times PE average, give the company 2021 15 times PE, corresponding to the target price 21.30 yuan, to maintain the "buy" rating.
The floor and plank business continues to be repaired, with a small gross profit margin under pressure.
From a product point of view, benefiting from the low base of epidemic repair in the same period last year, the company's flooring and plank business was repaired steadily in the first half of the year, of which 21H1 wood flooring business achieved revenue of 2.564 billion yuan, an increase of 35.1% over the same period last year; revenue of medium and high density boards reached 711 million yuan, an increase of 56.4% over the same period last year; revenue of bamboo and stone flooring reached 256 million yuan, an increase of 46.1% over the same period last year Revenue from wooden doors and cloakrooms reached 19 million yuan, an increase of 1892.7% over the same period last year. 2021H1's overall gross profit margin fell 6.95pct to 29.1% compared with the same period last year. We judge that the decline in gross profit margin is due to the change of accounting standards on the one hand, the classification of 242 million yuan of sales freight and sales installation costs to operating costs, and on the other hand, the upward impact of raw material costs in the first half of the year.
Leading in the flooring industry, brand advantage, scale advantage and marketing advantage continue to show the brand, and the brand image of "Sheng Xiang" is deeply rooted in the hearts of the people. According to the company's report, the brand value of "Sheng Xiang" in 2021 has reached 63.816 billion yuan, ranking first in China's household industry. Daya Wood-based Panel ranks first in China's wood-based panel industry with a brand value of 22.887 billion yuan. In terms of production capacity, the company currently has an annual production capacity of 80 million square meters of floor, and has an annual production capacity of 1.85 million cubic meters of medium and high density board and particleboard, leading the industry in scale.
In terms of marketing, the company actively gives full play to the advantages of marketing network, currently has nearly 3000 floor stores in China, and at the same time actively improve the construction of online e-commerce channels, constantly innovate marketing models, and achieve omni-directional coverage of consumer channels.
The leading position of the flooring industry is solid, maintaining the "buy" rating.
The company's floor business and plate business continue to repair, we increase the floor business income, the company's 2021-2023 net profit is expected to be 7.77,8.24, 926 million yuan (the previous value is 7.38,8.12, 920 million yuan), the corresponding EPS is 1.42,1.51,1.69 yuan. With reference to the average value of 15 times PE expected by comparable company Wind in 2021, the company will be given 15 times PE in 2021, corresponding to the target price of 21.30 yuan (the previous value is 21.60 yuan), and maintain the "buy" rating.
Risk tips: the development of the epidemic is uncertain, real estate sales are down, and customer expansion is not as expected.
