Items:
According to the company's semi-annual report of 2022, 22H1 achieved operating income of 2.537 billion yuan, YOY+0.94%; realized net profit of 126 million yuan, YOY-2.18%, net interest rate was 4.95%, and YOY-24.93%, deducted non-homing net profit of 87 million yuan, and YOY-24.93%, deducted 1.19 pcts of non-homing net profit. Single Q2 achieves operating income of 1.224 billion yuan, YOY-10.28%; net profit of 67 million yuan, YOY+0.68%, net profit of 5.51% Magi Yoyama 0.60pct, deduction of non-homing net profit of RMB 43 million, YOY-35.39%, deduction of 3.50% non-homing net interest rate of 1.38pcts.
Comments:
Stressless and IMG brand growth rate is beautiful, channel growth rate is steady. 1) from a brand point of view, Qumei / Stressless/IMG/Svane achieved revenue of RMB 6.18, 14.25, and RMB 3.88 million respectively, compared with the same period last year. The revenue growth rate of major brands is under pressure, with Stressless China market orders 22Q1 growing in triple digits and Q2 growth of nearly 40%. 3) in terms of channels, the total volume of 22H1 bulk business channel orders increased by nearly 100% compared with the same period last year.
The gross profit margin is slightly under pressure and the cost is well controlled. In terms of profits, 22H1's gross profit margin also decreased by 2.02pcts to 34.23%, mainly because the epidemic affected household consumption, and the real estate industry was under pressure, and the cost was still high. In terms of expenses, 22H1's sales / management / R & D expense rates change from 0.77pct/+0.96pct/+0.03pct to 16.28%, 7.65% and 1.95%, respectively, and single Q2 sales / management / R & D expenses rates change from + 1.20pcts/+1.47pcts/-0.11pct to 16.52%, 7.97% and 2.12%, respectively. Among them, the increase in management expenses is mainly due to the increase in labor costs, consulting service fees and intermediary fees in the current period. In terms of cash flow, the net cash flow of 22H1 operating activities increased by 33.74% to 200 million yuan, while the net cash flow of single Q2 business activities decreased by 10.02% to 183 million yuan, mainly due to the decrease in expenditure on purchasing raw materials and purchased goods in the current period.
Short-term follow-up: Beijing direct business innovation-driven development, Q2 structural price increases to hedge costs. Under the strict control of the epidemic situation in the Beijing market in April and May, the direct business actively carried out business innovation, vigorously promoted the direct assembly business, increased by 10% against the trend in the first half of the year, actively carried out multi-channel drainage and online drainage, and further optimized the flow structure. and expand the channel against the trend. Company Q2 structural price increase combined with cost optimization to hedge the impact of rising raw material prices.
Speed up research and development to enhance product capacity, the cost is expected to improve and promote future development. Bulk business is expected to usher in centralized delivery in the second half of the year, if the prices of raw materials and sea freight can be rapidly improved, the company is expected to take advantage of products and marketing to seize market share. Based on this, taking into account the pressure on the revenue growth of the main brands in the first half of the year under the disturbance of the epidemic, it is estimated that the net profit of homing in 22-24 years will be 337 million yuan and 533 million yuan respectively (the original value is 481 million yuan), corresponding to the annual PE of 14gamma 9x7X in 22-23-24. With reference to the absolute valuation method, the target price will be given 10 yuan and the "strong push" rating will be maintained.
Risk tips: rising raw material costs, shipping costs, production capacity is not up to expectations, and so on.