Event description
23H1 revenue 2.07 billion yuan (down 10%), return to the mother / deduction non-net profit loss of 063 trillion yuan; 23Q2 revenue 1.262 billion yuan (up 3%), return to the mother / deduction non-net profit to a profit of 0.32 trillion yuan 0.23 million.
Event comment
Q2 revenue returned to growth, this year focused on customization and supporting strategy since the operation to meet the repair. Q2 revenue increased by 3%, while Q1 decreased by 26%. Driven by the focus on customized product strategy and the sustained recovery of consumption, Q2 custom furniture and supporting household income returned to growth, while H1 overall decreased by 9% and 7% respectively. The overall assembly income has declined, mainly due to the impact of the short-term strategic contraction of the direct finishing business to Guangfo, while local dealers are actively cooperating with the installation enterprises.
Q2 gross profit margin has improved significantly, and profit repair is on the way. Q2 gross profit margin is the same as 1.7pcts, in which custom furniture / matching furniture gross margin year-on-year + 2.6/-9.5pcts. From the split point of view, the improvement of gross profit margin is mainly due to: 1) year-on-year price reduction of raw materials, 2) cost improvement brought about by internal manufacturing optimization and efficiency improvement, and hedges the structural impact of the direct operation model with higher gross profit margin in the process of joining the model. Q2 overall expense rate has been optimized under the improvement of revenue end, sales / management / R & D / financial expense rate is year-on-year-1.0/+0.2/-0.3/-0.6pct, return to mother / deduction non-net interest rate increases 2.6/3.3pcts. This year, the company will continue to optimize and practice internal skills around material cost reduction, staff adjustment and cost input, so as to promote profit improvement.
Optimize the channel structure, "1+N+Z" mode helps to improve the efficiency of the whole chain and deepen terminal coverage. 1) Direct operation city: the company promotes the "1 (big store) + N (direct operation / franchise store) + Z (installation-enterprise integration store)" model. The net change of 23H1 direct operation / franchise store is from-18 Universe 19 to 54 Universe 322 respectively. The direct operation transfer to join the reform continues to advance. Finally, the direct operation store will be positioned as a super store as a brand display and multi-dimensional support in logistics, delivery and other dimensions to enable dealers, while speeding up the terminal coverage of multi-format franchise stores. Expand the business of carrying bags, packing, etc. 2) joining cities: the company promotes the "1 (general distribution) + N (franchise / distribution store) + Z (installation-enterprise integration store)" model, by giving play to the "1" business in the local resources and systematic advantages (such as warehouse clothing, etc.), reduce the comprehensive operation requirements of "N" business in order to better focus on the front-end multi-channel to get customers, as of the end of 23H1, the number of the company's franchise stores is 2009.
The mode of "choose as you please" is optimized, and the marketing force is advanced. The company promotes multi-category integration of terminals through customization of the whole house. Recently, around four major household types and six major family life cycle customization models, the company has launched the AiLife6 Smart Life Series Matrix, which includes 23 major products, helping the terminal to achieve accurate transactions and improve the conversion rate.
Focus on customization + supporting the traditional advantages of the main business to promote high-quality development. This year, the company will focus on customization and supporting areas with traditional advantages, through the package model represented by "choose at will", enlarge the competitive advantages of its own supply chain system and information system, and deliver a more collaborative and personalized product combination. at the same time, increase investment and channel expansion efforts to deepen retail terminal layout infiltration. The whole assembly business will focus on Guangzhou, Foshan and Shenzhen, with model exploration and ability refinement as the guidance for development. It is estimated that the company's 23-25 year net return profit will be 1.5 pound, 2.2 billion yuan, and the corresponding PE will be 28max 19amp 12x.
Risk hint
1. Real estate sales and completion are not as expected
2. The growth of the company's customized category is lower than expected.