Incident: The company achieved revenue of 340 million yuan in 2022, an increase of 43.24% over the previous year, net profit of 14.71 million yuan, a year-on-year decrease of 48.1%. After deducting net profit of 11.19 million yuan, net profit after deduction of 11.19 million yuan, a year-on-year decrease of 59.04%. Among them, Q2 revenue was 220 million yuan, a growth rate of 33.27%, net profit of 9.28 million yuan, a year-on-year decrease of 49.03%, net profit of non-return net profit of 7.5891 million yuan, a year-on-year decrease of 56.55%.
Revenue continued to grow at a high rate, and product and channel expansion achieved good results. The company's H1 integrated ceiling revenue was 285 million yuan, up 38.3% year on year, and integrated wall revenue was 49.68 million yuan, up 84.5% year on year. The company's product expansion to “upgrade integrated ceilings and strengthen integrated walls” and channel expansion to “strengthen retail, add installation companies and engineering channels” have achieved good results, and continued to grow at a high level in the face of the pandemic and weak demand.
Gross margin rebounded month-on-month, and upfront expenses affected profit levels. The company's H1 gross profit margin was 26.09%, down 4.3 percentage points year on year, and Q2 gross profit margin was 27.44%, down 0.94 percentage points year on year. The decline in gross margin was mainly due to a drop in Q2 prices of raw materials such as aluminum, but overall slightly higher than in the same period in 2021. Considering that aluminum prices have been lower than the same period in 2021 since July, it is expected that gross margin will continue to recover in the future. In addition, the company's cost rate for the H1 period was 20.45%, up 3.92 percentage points from the previous year, and the cost rate for the single Q2 period was 20.82%, up 5.32 percentage points from the previous year. Among them, the H1 sales, management, R&D, and financial expense ratios changed -0.86, +3.33, +0.97, and +0.48 percentage points, respectively. The pre-expenses and equity incentive expenses brought about by business expansion affected profit levels.
Comprehensive transformation has begun, beginning a ten-year journey of 10 billion dollars. According to the Association's statistics, the ceiling wall market size in 2021 was 77.6 billion yuan, including 38.6 billion yuan for integrated ceilings and 39 billion yuan for integrated walls. Based on the current low penetration rate, the long-term market space exceeded 100 billion yuan. Currently, the competitive landscape is still fragmented, but small enterprises continue to withdraw, leading companies rely on product power and channel advantages to expand rapidly, and there is a trend that concentration continues to increase. Since 2021, the company has fully upgraded its product line and made efforts to integrate walls. Its product capabilities are industry-leading and continuously improving. At the same time, since 2021, the company has carried out channel changes, and the retail side has increased dealer expansion efforts and laid out distribution channels. Home improvement companies and engineering divisions have been established and developed rapidly. Furthermore, in October 2021, the company appointed Mr. Kuang Zhengsan, the former Sankeshu provincial manager, regional director, general manager of the decoration and paint division, and general manager of the retail strategy department, as the executive deputy general manager to help the company develop. In December 2021, the company announced the employee shareholding plan. In July 2022, the company held a “professional high-end building roof wall” strategy conference in Guangzhou, and proposed the “five-year top of the world, standing at the top of the world by 2025, and exceeding 10 billion dollars by 2030.” The performance has entered the new goal of “striving to exceed 3 billion dollars by 2025 and 10 billion by 2030”. Acceleration period.
Profit prediction: Under the comprehensive transformation of the company, a performance inflection point has already occurred, and the future has high growth potential.
The company's revenue for 2022-2024 is expected to be 917 million, 1,277 million, and 1,779 million respectively, and net profit to be 76 million, 118 million, and 169 million respectively. The three-year performance growth rate is 49.3%. The corresponding PE is 29.1, 18.7X, and 13.1X respectively, maintaining the “buy” rating.
Risk warning: The risk of fluctuations in the real estate industry and the risk of a sharp rise in raw material prices.
