Event: on August 26, the company released its 2021 semi-annual report. During the reporting period, the company achieved a total operating income of 3.563 billion yuan, an increase of 40.27% over the same period last year; a net profit of 302 million yuan, an increase of 90.44% over the same period last year; and basic earnings per share of 0.55 yuan.
The company's revenue grew rapidly in the first half of the year, and the high cost led to a slight decline in gross profit margin. Of this total, the company achieved revenue of 2.154 billion yuan in the second quarter, an increase of 20.62 percent over the same period last year, and a net profit of 231 million yuan, an increase of 7.82 percent over the same period last year. During the reporting period, the company's comprehensive gross profit margin was 29.15%, down 6.94 percentage points from the same period last year. In the second quarter, the company's single-quarter gross profit margin was 29.02%, down 8.53 percentage points from the same period last year and 0.32 percentage points from the previous quarter.
Benefiting from the low base of the epidemic in the same period last year and the full recovery of the company's business, the company achieved rapid revenue growth. Due to the increase in sales revenue and the inclusion of 242 million yuan in transportation and installation costs in operating cost accounting, operating costs increased by as much as 55.52%, which led to a slight decline in gross profit margin.
The company's cost control is effective, and the net interest rate rose significantly in the second quarter. In terms of expense rate, the company's sales / management / R & D / financial expense rate in the first half of the year was 7.93%, 8.73%, 1.84% and 0.57% respectively, which was 0.05 percentage points higher than that of the same period last year. In terms of net interest rate, the company's net sales interest rate during the reporting period was 8.60%, up 2.54 percentage points from the same period last year, of which the net sales interest rate in the second quarter was 11.06%, down 1.12 percentage points from the same period last year, and 6.21 percentage points higher than the first quarter.
The core of the business grew steadily, and revenue from wooden doors and cloakrooms soared. During the reporting period, the company's revenue from high-density boards / wood flooring / wood doors and cloakrooms / bamboo and stone flooring / other products respectively realized 7.11% 25.64x0.19%, 250%, 0.18 million yuan, an increase of 56.36%, 35.14%, 1892.69%, 46.11%, 16.21%, and 19.95%, 71.97%, 0.54%, 7.03%, 0.51% of the main business revenue, respectively. Among them, the gross profit margin of medium and high density board / wood floor / wood door and cloakroom / bamboo and stone plastic floor is 11.52% 34.35% 27.77% 22.95% respectively, which is 8.68% and 0.42% higher than that of the same period last year. Revenue core wood flooring is growing rapidly, and the performance of wooden doors and cloakrooms has achieved rapid growth, with an increase of 1892.69%.
Actively layout to broaden the track, enhance the value of independent brands. In terms of retail channels, the company has a global distribution and marketing network, and has nearly 3000 unified authorized and unified image floor stores in China. At the same time, it has followed up the online sales model and opened up online distribution stores of Tmall, JD.com and SUNING. The wholly-owned subsidiary Sheng Xiang Group further broadens the business track and deeply promotes the integrated customization of cabinets, walls and doors according to the guidance of everyone's housing strategy. In terms of engineering channels, maintain strategic cooperation with core large real estate customers such as Vanke, Poly and Country Garden Holdings to maintain steady revenue growth.
In terms of brand, the brand value of "Sheng Xiang" has reached 63.816 billion yuan, and the brand value of Daya wood-based panel has reached 22.887 billion yuan, ranking first in the domestic industry.
Investment suggestion: the company, as a leader in the wood flooring and wood-based panel industry, is constantly looking for new profit growth points, and is optimistic about the future development of integrated customization of cabinets, walls and doors, as well as the development of complete design. It is expected that the company will be able to achieve basic earnings per share of 1.38pm 1.53pm 1.80 yuan per year in 2021-22-23, corresponding to PE of 9X, 8X, 7X, maintaining the "recommended" rating.
Risk hint: the risk that economic growth is less than expected; the risk of intensified market competition.
