Event: on March 28, the Great Asian Idol released its 2021 annual report. In 2021, the company achieved operating income of 8.751 billion yuan, an increase of 20.46% over the same period last year; net profit of 595 million yuan, down 4.86% from the same period last year; and net profit of 557 million yuan, down 7.04% from the same period last year.
Among them, 21Q4 achieved operating income of 2.614 billion yuan, an increase of 0.24% over the same period last year; net profit of 116 million yuan, down 41.48%; and net profit of 112 million yuan, down 41.45% from the same period last year.
Income growth rebounded in 21 years, actively promoting the expansion of new categories after frequent risk events brought about by real estate regulation in the second half of 2021, the company actively changed its business strategy, and B-end channels tended to develop steadily, so the growth rate of 21Q4 income has been adjusted.
However, for the whole year, income growth in 2021 exceeded 20%, which is significantly higher than in previous years, and business fundamentals are expected to continue to improve.
In terms of products, the company's traditional wood flooring business achieved 6.122 billion yuan in 2021, an increase of 14.89% over the same period last year; medium and high density board business achieved 1.861 billion yuan, an increase of 25.69% over the same period last year; laminate and other businesses achieved 649 million yuan, an increase of 59.38% over the same period last year; wooden door and cloakroom business achieved revenue of 73 million yuan, a significant increase over 5.62 million yuan last year. The company actively promotes product research and development, and successfully launched new categories such as sports flooring, outdoor flooring and new decorative wallboards in 2021, and its business besides traditional wooden flooring has also achieved rapid growth.
The gross profit margin is affected by raw materials in the short term, and in terms of better profitability, the company's sales gross profit margin in 2021 was 26.05%, down 3.39pct from the same period last year, and the net profit margin was 7.04%, down 1.70pct from the same period last year. We expect the gross profit margin to decline, mainly due to the low capacity utilization of wood-based panels and the rising prices of raw materials.
In terms of period expenses, the company's period expense rate was 17.32% in 2021, a decrease of 1.10pct compared with the same period last year.
Among them, the sales expense rate, management expense rate (including R & D expenses) and financial expense rate are from + 0.55pct,-1.25pct and-0.39pct to 7.60%, 9.17% and 0.55%, respectively.
In terms of cash flow, the net operating cash flow of the company in 2021 is 596 million yuan, which is basically the same as profit; the cash in hand is 2.167 billion yuan, an increase of 183 million yuan over the same period last year, and the overall performance is still sound.
Core executives return, China's first floor brand is expected to coruscate the new machine currently the company's chairman is Mr. Chen Jianjun, leading the overall development of the company. In December 2021, Mr. Wu Guhua announced his return to the company as president and secretary of the board of directors. After the core executives are in place, we expect the company's management team to gradually improve. Based on the company's brand, channels, products and other aspects still continue to take the lead, the floor faucet is expected to coruscate a new machine.
Investment advice: we expect the operating income of Daya Elephant to be 95.48,107.08 and 12.158 billion yuan respectively from 2022 to 2024, an increase of 9.11%, 12.15% and 13.54% over the same period last year, and the net profit of returning home is 6.78,7.74 and 915 million yuan respectively, an increase of 13.89%, 14.18% and 18.18% over the same period last year, corresponding to a Buy-An investment rating corresponding to PE of 8.3x, 7.2x and 6.1x.
Risk tips: the risk of repeated fluctuations of the epidemic; the risk of a sharp rise in raw material prices; the continuous downward risk of real estate; the risk of intensified competition in the industry.
