23Q2 income 620 million same minus 20%, return mother net profit 70 million same minus 14% company issued semi-annual report, 23Q2 income 620 million same decrease 20%, return mother net profit 70 million same minus 14% Ten 23H1 income 970 million same minus 30.3%, return mother net profit 80 million same minus 32.5%.

On the one hand, the decrease in income and performance is due to the fact that the 23H1 terminal retail market is still recovering and household consumption performance is relatively weak, on the other hand, Qianchuan in Hubei Province has not been included in the company's consolidated statement since July 22, which is different from the same period last year.

If the influence of Qianchuan in Hubei Province is excluded, the company's 23H1 revenue is reduced by 8.6%, its net profit is reduced by 7.9%, the non-return net profit is reduced by 26.3%, the company's own income is increased by 1.9%, and its net profit is increased by 11.1%. The net profit after deducting non-return is basically the same, and the operating situation is better than the previous month.

The company's own business (excluding Qianchuan, Hubei) is divided into products, the overall wardrobe revenue of 23H1 decreased by 11.1% in 720 million, and cabinet revenue increased by 13.8% in 120 million, mainly due to the continuous implementation of the common living strategy of the company and the growth of bulk business; wooden door income decreased by 2.7%; finished product income decreased by 19%; and door and window income decreased by 89.4%, mainly due to the brand switching of the business.

For its own business channels, the revenue of 23H1 direct stores decreased by 9.4% in 35.6 million, that of distributors decreased by 15% in 810 million, and that of bulk business increased by 181.2% in 75.38 million, mainly due to the increase in the completion and acceptance of construction projects in real estate enterprises.

The net profit margin of 23H1 is 8.7% and minus 0.3pct, and the gross profit margin of its main business is 36.3% and the gross profit margin of 0.7pct23Q2 company is 36.1%, and the gross profit margin of 0.5pctGrain23 H1 is 35.9%, which is the same as 0.3pct. If not taking into account Qianchuan, Hubei, the gross profit margin of the company's main 23H1 business increased by 36.3% with the increase of 0.7pct, of which the cabinet gross profit margin increased by 27.1% with the decrease of 1.5pct, which was mainly due to the increase in the proportion of bulk business and the 6.1% increase in gross profit margin of doors and windows with the increase of 30.1pct, which was mainly due to the change of business model after switching brands. The gross profit margin of direct stores with the decrease of 5.6pct is mainly due to the change of product structure.

23Q2's homing net interest rate is 11.6%, 0.8 pct.com 23H1 8.7% and minus 0.3 pctbot 23H1 sales / management / R & D / financial rates are 13.6% (yoy+3pct), 7.3% (yoy+1.4pct), 5.6% (yoy+ 0.9pct) and 1.7% (yoy+ 0.4pct), respectively.

Issue employee stock ownership plan to demonstrate confidence in future development

The company issued the employee stock ownership plan (draft), which is aimed at Dong Jiangao, middle level, etc., with a total number of no more than 250 people and raising funds of no more than 61.358 million yuan. The plan plans to hold no more than 11.116 million shares, accounting for about 3.57% (the stock is derived from the company's special buyback account, the company has previously repurchased a total of 1111.6 shares through centralized bidding as of November 2020) The price of the repurchased shares of the company is 5.52 yuan per share (about 50% of the closing price on September 8).

The underlying shares obtained under the plan are unlocked in two phases with a lock-up period of 12 months and 24 months respectively. The target values of performance evaluation are: ① 24 income increases 8% over 2023; ② 25 revenue increases 16% over 2023 (according to our current revenue forecast for 23 years, it is about 7% higher than 24 years); trigger value is: ① 24 revenue growth 5% compared with 2023 ② 's 25-year revenue is 10% higher than that of 2023 (if our current revenue forecast for 23 years is about 5% higher than that of 24 years) the announcement of employee stock ownership will help the company to attract high-quality talent during the period of industry change, stimulate drive and accelerate everyone's strategic landing, while reflecting strong confidence in future development.

Implement the strategy of everyone's residence and deepen management through all channels

At present, the company has formed a wardrobe + cabinet + wooden door + parapet + finished product category matrix, and focus on exploring the integration of door and wall cabinets on the basis of meeting the full category. The proportion of 23H1's household orders increased steadily, the unit value of retail customers maintained growth, the proportion of cabinet products and wooden door products in the main revenue continued to increase, and cabinet revenue increased year-on-year.

The company continues to increase investment in retail channels and brand construction, the head market promotes the urban operation platform model and encryption network, actively covers the sinking market blank cities, and continues to make efforts in new channels such as bag-carrying and personalized home decoration. In terms of bulk business, adhere to the customer structure with central enterprises and state-owned enterprises as the core and high-quality private enterprises as the auxiliary, while actively opening up new customers, ensuring quality and quantity and timely delivery of orders on hand.

In addition, as an important supplement to the company, the whole assembly channel, on the one hand, increases the strategic cooperation with the head equipment enterprises, on the other hand, it speeds up the investment and construction of independent channels, and quickly develops the whole assembly market. The scale of 23H1 assembly business has increased by more than 30%.

Maintain profit forecast and maintain "overweight" rating

We are optimistic that the company will focus on retail layout for a long time, speed up the development of balcony series of new products on the product side, improve the product matrix, steadily advance the channel-end assembly business, tap the market potential of stock housing bureau reform and old reform, and actively respond to industry changes. We estimate that the EPS of the company in 23-24 is 1.05,1.16,1.31 yuan per share respectively, and the corresponding PE is 10.3,9.3 and 8.2x respectively.

Risk tips: real estate sales are not as expected, industry competition intensifies, raw material prices rise, everyone's housing strategy is not as expected, etc.; the current employee stock ownership plan is only a draft, please take the company's final announcement shall prevail.