Event description
The company released the semi-annual report of 2021: during the reporting period, the company achieved operating income of 1.771 billion yuan, an increase of 106.43% over the same period last year. Affected by the seasonality of the home decoration industry and the current investment in the company's store construction and upgrading, the net profit belonging to shareholders of listed companies was-119 million yuan, an increase of 49.36% over the same period last year; the net profit belonging to shareholders of listed companies after deducting non-recurrent profits and losses was-128 million yuan, an increase of 47.93% over the same period last year.
Event comment
2021Q2's revenue reached the highest level in the second quarter since it went public, significantly surpassing the pre-epidemic level.
2021Q2, the company achieved operating income of 1.282 billion yuan, an increase of 93.02% over the same period last year, an increase of 20.04% relative to 2019Q2, a net profit of 92 million yuan, an increase of 832.75% over the same period last year and an increase of 411.11% relative to 2019Q2, and a net profit of 91 million yuan after deduction, an increase of 774.97% over the same period last year and 435.29% relative to 2019Q2.
The company is in good condition of receiving orders, with sufficient orders on hand, and the performance can continue to grow in the second half of the year. By the end of the reporting period, the company's order data increased by 52% compared with the same period last year. The newly signed order for 2021Q2 decoration and decoration was 1.326 billion yuan (including home decoration, Seiko and public decoration business), and the total amount of unfinished orders signed was 4.125 billion yuan. By the end of the second quarter, the company's contract liabilities were 1.071 billion yuan, an increase of 299 million yuan compared with the beginning of the year. The amount of contract liabilities increased significantly, and the performance could continue to grow in the second half of the year.
The revenue of home decoration business increased by 127% compared with the same period last year, and gradually returned to the normal level. The growth rate of Seiko income is bright, and the BBC customized hardcover model can be expected in the future. According to the business segment, during the reporting period, the company's home decoration, public wear and Seiko business realized business income of 15.65,1.04 and 50 million yuan respectively, an increase of 126.82%,-2.74% and 117.11% over the same period last year, accounting for 88.40%, 5.89% and 2.82% of total revenue respectively. The company's "Dongyi Risheng hardcover" cooperates with a number of well-known real estate enterprises, focusing on the future customized hardcover market and prefabricated decoration business. Under the BBC customized hardcover mode, the company, as a complete service provider, directly faces the consumers who buy the real estate through the real estate developer, and completes the standardized and personalized integration scheme according to the needs of consumers, which is conducive to more accurately locking the upstream entrance of home decoration. Batch docking and integration of scattered flow of specific buildings.
Sufficient cash flow and improved operating capacity provide a solid guarantee for the company's sustained and sound operation.
During the reporting period, the net cash flow generated by the company's operating activities was 181 million yuan, an increase of 3303.44% over the same period last year; the number of days of inventory turnover was 21.55 days, down 1.32 days from the same period in 2019; and the number of days of turnover of accounts receivable was 33.29 days, a decrease of 6.06 days compared with the same period in 2019.
The company increases investment in smart home R & D and application projects, improves the landing efficiency of digital delivery, and accelerates the landing of digital strategic achievements. By the end of the reporting period, the company was under construction of 60 million yuan, an increase of 319.32% over the same period last year. XIAOMI Technology was previously introduced as a strategic investor. In the future, it will rely on XIAOMI's in-depth layout in the field of smart things couplet to speed up the exploration of the integration of AIoT IoT technology and smart home lifestyle. In the aspect of digital delivery of the whole assembly business, the SAAS system is fully used to open up the upstream and downstream business chain, service chain and data chain, and realize the digital delivery of the whole process, such as online contract signing, scheme confirmation, collection, acceptance, construction control, after-sales service and so on. During the reporting period, the on-time delivery rate of the integrated home improvement business reached 95%, and customer satisfaction reached 96.2%. In the aspect of personalized customized business delivery, the 360 °delivery management sky eye system is fully used. in the second half of the year, all customers at the new construction site will be included in the system, realizing customer online acceptance and change confirmation, and constantly improving the efficiency of customer interaction. During the reporting period, the customer satisfaction of personalized home decoration business reached 95.3%.
Investment suggestion
From 2021 to 2023, the company is expected to achieve a net profit of 2.20,2.42 and 261 million yuan, an increase of 21.91%, 10.33% and 7.53% over the same period last year, corresponding to 0.56 EPS and 13.85,12.55 and 11.67 times of PE, respectively.
There are risks.
Macroeconomic growth is not as expected; real estate regulation and control policy risk; market promotion is not up to expectations; raw material price fluctuation risk.