Bulk business adjustment dragged down revenue slightly, 22H1 revenue decreased 4.52% company 1H22 revenue decreased 4.52% to 711 million yuan, mainly due to the company's adjustment of business structure, bulk business contraction; 1H22 home net profit decreased 23.13% to 40 million yuan, deducted non-return net profit decreased 11.73% to 26 million yuan, mainly due to the increase in expenses under the expansion of the direct operation area. On a quarterly basis, 22Q1/Q2 's single-quarter revenue ranges from 15.30% to 3.19 / 393 million yuan compared with the same period last year, the net profit from return to mother is + 15.65% from 34.17% to 0.13 billion, and the net profit after deducting non-return is from + 231.93% to 27.67% to 0.03 billion, respectively. We estimate that the company's EPS for 22-24 years will be 0.54 EPS 0.67 won 0.81 yuan respectively. With reference to the comparable company's average Wind consensus expectation of 16 times PE in 22 years, we will give the company 16 times the target PE for 22 years, with a target price of 8.64 yuan per share, maintaining the "overweight" rating.
Focusing on retail development, steady growth of retail revenue, contraction and adjustment of bulk business, under the disturbance of the epidemic in the first half of the year, the company actively responded to and rapidly deployed resources, continued to strengthen the terminal layout, and helped dealers transform to new retailing. And continue to explore the direct market store + community + home decoration + new retail + live broadcast order integration of the multi-channel sales model 1H22 distribution / direct channel revenue increased by 18.92% 15.12% to 52111.132 million yuan, respectively. Under the influence of credit events, the company took the initiative to shrink its bulk business, focusing on risk control and payment collection, and vigorously developed the all-cash business of engineering dealers. 1H22 bulk business also decreased by 70.82% to 56 million yuan. In terms of category, the company's product expansion has progressed steadily, and the new category has maintained a rapid volume trend. 1H22's overall kitchen cabinet / whole-house customized business revenue is-36.56%, respectively, compared with the same period last year.
1H22 gross profit margin increased 2.1pct compared with the same period last year, and the sales expense rate due to the expansion of direct business increased. 1H22 sales gross profit margin also increased to 43.0%. We judge that it is mainly due to the increase in the proportion of retail business with high gross margin. The expense rate during 1H22 is from + 3.5pct to 37.9%, of which the sales expense rate is from + 2.8pct to 26.0%, which is mainly due to the increase in salary and store rent under the expansion of direct business; the management + R & D expense rate is from + 0.7pct to 11.4% compared with the same period last year, which is mainly due to the increase in wages in functional departments and the increase in depreciation of idle factories in Lishui. The financial expense rate is from + 0.03pct to 0.52% compared with the same period last year, which is mainly due to the increase in housing rental financing costs. Under the combined influence, 1H22's net profit rate on sales fell by 1.4pct to 5.7% compared with the same period last year.
Retail business makes steady efforts to maintain "overweight" rating
Taking into account the restructuring of the company's business structure to retail, we downgrade the company's bulk business income forecast and raise the sales and management expense rate forecast. It is estimated that the return net profit for 22-24 years is respectively 1.71 pound 2.12 billion yuan (the original value for 22-24 is 2.56 billion yuan), and the corresponding EPS is 0.54 Wind 0.81 yuan. Refer to the comparable company Wind consensus forecast 16 times the average PE in 2022. Give the company 16 times the target PE in 2022, corresponding to the target price of 8.64 yuan per share (the previous value is 8.06 yuan per share), and maintain the "overweight" rating.
Risk tips: the development of the epidemic is uncertain, real estate sales are down, and channel expansion is not as expected.