Events:
Dongyi Risheng released its semi-annual report for 2021, with operating income of 1.771 billion yuan, an increase of 106.44% over the same period last year, and net profit of-128 million yuan, an increase of 47.93% over the same period last year, deducting non-return net profit of-128 million yuan, an increase of 49.30% over the same period last year.
Comments:
The main business of home improvement led the rise, and revenue doubled. The income of the main home decoration industry in the first half of 2021 was 1.565 billion yuan, an increase of 126.82% over the same period last year, accounting for 88.40% of the total revenue. In terms of products, the income of the main engineering products was 1.49 billion yuan, an increase of 129.29% over the same period last year, and the design income was 229 million yuan, keeping a high gross profit margin of 42.13%. The company's revenue in the second quarter reached 1.282 billion yuan, an increase of 93.02% over the same period last year, and the net profit returned to its mother was 92.4469 million yuan, a substantial increase of 832.75% over the same period last year.
The rate fell and turned a loss into a profit in the second quarter. The net profit of homing decreased to negative in the first quarter, mainly due to the increase in company expenses. In the second quarter alone, the expense rate dropped sharply, the sales / management / R & D expenses rate decreased month-on-month, 39.76pct/11.82pct/4.74pct, and the company's net profit turned from a loss to a profit. And the company was driven by the growth of home improvement business in the first half of the year, and the operating cash flow recovered sharply, reaching 181 million yuan, an increase of 3303.44% over the same period last year, laying the foundation for the company's sustained and stable operation in the future.
The investment in marketing has been increased, and the expansion of the main business has been smooth. The company further focuses on new media social platform, layout a variety of new marketing channels, differential drainage to attract young consumer groups. In the second quarter of 2021, newly signed orders totaled 1.326 billion yuan, with a total of 2.462 billion yuan in the first half of the year, an increase of 52 percent over the same period last year, and the cumulative amount of unfinished orders reached 4.125 billion yuan. The company's brand advantage has improved at the same time, and it has won the "National quality Inspection stable qualified products" in March and has been recognized by the China quality Inspection Association for four consecutive years.
Product upgrade, comprehensive digitization to improve satisfaction. The company invested 76.2364 million yuan in R & D in the first half of the year, an increase of 22.19% over the same period last year. During the reporting period, the company independently developed technologies such as indoor low-floor drainage, anti-backflow and air-proof structure, water permeability and quick-drying floor structure in the shower zone, solved the pain points of the industry, and obtained more than 40 patented technology identification. In terms of digital delivery of the integrated business, the company made full use of the SAAS system to optimize the performance of 23 mobile phones in the first half of the year. The on-time delivery rate of the integrated home improvement business reached 95%, and customer satisfaction reached 96.2%.
Cover for the first time, giving the company a "buy" rating. It is estimated that the EPS of the company from 2021 to 2023 will be 0.46, 0.52, 0.64 yuan, and the corresponding PE will be 15.70, 13.87, 11.26 times.
Risk hint: the landing of the order is not as expected, and the valuation and profit forecast are not as expected.