The operation improved steadily, and the annual net profit increased by 42.56% compared with the same period last year. The year-on-year revenue increased by 18.93% to 1.584 billion yuan, and the net profit increased by 42.56% to 220 million yuan, which was close to the median of the previous performance forecast (216-231 million yuan). The net profit deducted from non-homing increased by 48.98% to 198 million yuan over the same period last year. On a quarterly basis, 20Q1/Q2/Q3/Q4 's revenue in a single quarter changed by 5.43%, 0.59%, 15.46%, 43.85% to 1.95, 3.43, 4.61, and 585 million yuan, respectively, and its net profit in a single quarter changed by 230.49%, 0.62, and 41.75%, respectively, compared with the same period last year. 75.10% to 0.02, 0.45, 0.75 and 0.97 million, respectively, compared with the same period last year. We estimate that the company's EPS will be 0.85,1.06,1.34 yuan respectively from 2021 to 2023, maintaining the "overweight" rating.
Retail business was gradually repaired, and revenue from bulk business increased by 61.82%.
From a business point of view, the company's cabinet business revenue in 2020 increased by 16.07% to 843 million yuan compared with the same period last year, and the revenue from the whole house customized business increased by 22.36% to 741 million yuan over the same period last year. In 2020, the company cooperated with many well-known real estate companies such as Rongchuang and Jinmao, and opened up engineering agents in core cities such as Shanghai and Beijing. the revenue of bulk business increased by 61.82% to 390 million yuan compared with the same period last year, and the proportion of revenue increased by 6.52pct to 24.61% compared with the same period last year. In terms of distribution, during the epidemic, the "warm Spring Action" was launched to vigorously subsidize dealers and promote the upgrading and integration of online and offline marketing networks. In 2020, revenue from distribution channels increased by 5.06% to 975 million yuan compared with the same period last year. In terms of direct marketing, the company further expanded the direct market in Hangzhou on the basis of continuing to cultivate direct markets such as Nanjing and Shanghai, with revenue from direct channels growing 35.79% to 214 million yuan in the whole year compared with the same period last year.
Expand the product matrix in many directions and continuously optimize the channel construction.
In terms of products, the company continues to enrich product lines and categories. In 2020, the company launched a new customized product INGREECE Gerry series, upgrading aldehyde-free and adding "music core board", while expanding supporting furniture (beds, mattresses, sofas, tables and chairs, etc.) and soft goods, constantly improving the strength of the products. In terms of channels, the distribution network has steadily expanded, and the structure of stores has been continuously optimized. in 2020, the number of distribution stores increased by 78 to 1248, of which the number of kitchen cabinets / whole-house stores increased by-9x87 to 649599 respectively, and the number of direct stores increased by 17 to 54. In terms of marketing, the company actively introduced live broadcast with goods from stars under the epidemic to increase the delivery of public domain flow. in addition, the company also launched cross-border marketing, carried out strategic cooperation with American Silian mattress and Fangtai Group, and diverted each other according to the product advantages of both sides.
The growth rate of bulk business is eye-catching, maintaining the "overweight" rating.
The company's bulk business growth is bright, the retail business is gradually repaired, and the retail business profit forecast is raised. We expect the 2021-2023 net profit to be 2.72,3.42 and 433 million yuan (the original value from 2021 to 2022 is 2.20 yuan and 262 million yuan), corresponding to 0.85,1.06,1.34 yuan respectively. With reference to the average value of the comparable company's 25 times PE in 2021 (Wind consensus expectation), and considering that the compound growth rate of the company's homing net profit from 2019 to 2022 is slightly lower than the industry average, the company's 20x target PE, in 2021 is given a target price of 17.00 yuan (the previous value is 18.88 yuan), maintaining the "overweight" rating.
Risk tips: the development of the epidemic is uncertain, market competition intensifies, and raw material prices fluctuate greatly.