3Q21 suffered a small loss and the amount decreased compared with the same period last year, and the performance was in line with our expected 1-3Q21 performance: revenue of 1.53 billion yuan, 12.82% year-on-year, corresponding return net profit of 27 million yuan, an increase of 8.77% over the same period last year. The net profit after deducting non-return is 22 million yuan, an increase of 58.26% over the same period last year. The overall performance of 3Q21 Company is in line with our expectations.
The company's 3Q21 realized revenue of 514 million yuan, an increase of 9.34% over the same period last year, and its net profit was-20 million yuan, showing a small loss, but the amount of loss was less than that of 3Q20.
The 3Q21 expense rate has improved compared with the same period last year. The company's 3Q21 sales expense rate, management expense rate and R & D expense rate were 32.93%, 3.73% and 4.03% respectively, in which the sales and management expense rate decreased by 3.05ppt and 1.27ppt respectively compared with the same period last year, and the cost control ability was improved compared with the same period last year.
The inventory scale turnover management efficiency has declined, and the accounts receivable turnover efficiency has improved compared with the same period last year. The company's 3Q21 ending inventory reached 897 million yuan, an increase of 33.10% over the same period last year, and the corresponding inventory turnover period was 260.84 days, an increase of 24.93 days over the same period last year. The size of the company's 3Q21 accounts receivable was 310 million yuan, a decrease of 14.53% over the same period last year, and the turnover days of accounts receivable was 58.55 days, a decrease of 23.14 days compared with the same period last year.
Development trend
The company is committed to the design, production and sales of high-end bedding and high-quality home life services, through information, big data and other ways of customer demand, product research and development to create a high-grade product texture to meet the background of consumer upgrading. Consumers need life experience for high-quality and high-positioning household products. In recent years, the company has actively promoted the overall upgrading of the brand image, increasing the brand presentation in the core business district, airport, high-speed rail station and other important locations. In addition, the company's online e-commerce channels steadily promote the new upgrading of the official website and official mall, in line with the pace of brand promotion, continue to promote various platforms, recommendations and other marketing activities.
Profit forecast and valuation
The profit forecast for 2021x2022 will remain unchanged, which is expected to be 0.550.75 million yuan respectively, and the current share price of the company corresponds to the price-to-earnings ratio of 54.0 and 39.4 times of 2021 and 2022 respectively. Maintain the neutral rating and the target price of 4.54 yuan, corresponding to the company's price-to-earnings ratio of 46 times 2022, which has 15.9% upside compared with the current share price.
Risk
The cost of raw materials fluctuates upwards, the quality and quantity of channel transformation are not as good as expected, and the effect of advertising on terminal sales is not as good as expected.