In 2021, revenue and attributable net profit increased by 44.88% and 71.36% year-on-year, respectively.
On April 22, the House of Actually (000785. SZ) announced its 2021 results, and a number of brokerages gave "buy" and "highly recommended" ratings.
2021 can be described as the year of the realization of the digital business of actually home, with revenue exceeding 10 billion yuan for the first time, and all core indicators have recorded an ideal increase. Capital Securities' evaluation of this annual report is "deeply cultivating the main home furnishing business to continuously promote digital transformation, and the annual revenue performance exceeds expectations"; Debon Securities evaluates that "the traditional operation is basically stable and rising, actively promoting digital transformation, and leading the new retail of home furnishing".
Actually home's own statement is, "focus on leading the digital transformation of the home furnishing industry, in order to fully empower industry chain partners and achieve industry efficiency improvement."
With the deepening of the combination of new technologies and industries such as 5G, big data, and cloud computing, the home furnishing industry seems to have found a new path of evolution. In the home furnishing industry, which is still in the early stages of digitalization, the home has taken on the role of a practitioner and a guide.
Revenue exceeded 10 billion for the first time
With the advanced layout of digital business, the revenue of Actually Home in 2021 will exceed 10 billion yuan for the first time.
According to the annual report, in 2021, Actually Home achieved operating income of 13.071 billion yuan, an increase of 44.88% year-on-year; net profit attributable to shareholders of listed companies was 2.325 billion yuan, an increase of 71.36% year-on-year; deduction of non-net profit of 2.229 billion yuan, an increase of 75.72% year-on-year; sales (GMV) was 104.03 billion yuan, an increase of 58.24% year-on-year. The net cash flow generated by operating activities reached 5.701 billion yuan, an increase of 178% over 2.051 billion yuan in 2020, with significant operating results and further improvement of risk resistance.
According to the annual report, the company's tongcheng station business continued to pay attention to the creation and operation of explosive products to drive traffic growth, with an average daily visitor volume of 192,000 people, 758,000 online customers, and 13.3 billion yuan of guided transactions, an increase of 57% year-on-year; 234 stores carried out 29,000 live broadcast activities, with a total number of 209,000 customers and 3.35 billion yuan of guided transactions. It has created a marketing system with "WeChat Mini Program + Enterprise WeChat" as the core of private domain traffic planting, customer acquisition and distribution and conversion, precipitated the online position of retained users and store-to-store users to the private domain user pool, comprehensively improved user stickiness and conversion efficiency, precipitated 210,000 customers, and guided transactions of 10.3 billion yuan.
In terms of digital tools and digital transformation, it has been transformed and upgraded, opened up online and offline global marketing, and built the basic capabilities of new retail transformation; realized the digitization of brands and commodities, met the online and offline shopping scenarios of consumers, and improved the whole life cycle management capabilities of goods; real-time display of key indicators of sales, investment promotion, membership and other business entities, improved data acquisition efficiency, and provided daily data tracking capabilities.
For digital transformation, Wang Linpeng, chairman of Actually Home Group, once said that Ali has brought accurate customers and consumer demand to Actually Home, and the digital transformation of home will bring great marginal effects. Wang Linpeng mentioned that in the next three or five years, the income structure of the home will change significantly, "as long as you insist on making home improvement and home services happy and simple, one hand and one leg are down-to-earth to do the operation of physical stores, and the other hand and the other leg will fully promote digital transformation, and the future value of the home will definitely explode within two or three years." ”
The year of digital business monetization
The 14th Five-Year Plan for the Development of the Digital Economy emphasizes industrial digitalization and the development of digital industries, and systematically gives ways to promote the development of digital industries at the policy level in the future.
At present, digital transformation has become the main direction of the development of the home furnishing industry. Wang Ning, CEO of Actually Home Group, believes that with the help of Alibaba Cloud, Actually Home has created a basic platform layer to empower the ecological roles of mall managers, brand parties, distributors and shopping guides in a timely manner. In the process of digital transformation, the core competitiveness should be self-operated, linear and in-depth. For non-core competitiveness, it is necessary to achieve platformization and socialization.
According to the data disclosed in the annual report, the designer of the house per flat and the designer focuses on providing SaaS services from design, construction drawings, quotation budget to construction management for designers and home improvement companies. At present, each flat house has more than 1.1 million domestic designers, more than 8.9 million overseas users, 4.68 million domestic commodity model libraries, 2.2 million overseas commodity model libraries, 7.66 million case libraries, and more than 90,000 cooperative merchants.
The home retail industry service platform "Dongwo" was officially launched on June 1, 2021, which is an important milestone event in the digital transformation of Actually Home.
By the end of 2021, "Dongwo" has attracted 27 non-inclinical stores and more than 4,000 non-inclinious merchants to settle in and achieve commercialization. From its launch in June 2021 to the end of 2021, the cumulative registered users of "Dongwo" reached 2.17 million, covering 60 stores in 17 cities, with the number of stores exceeding 10,000, 750,000 monthly active users, and GMV exceeding 100 million yuan.
In 2021, the expenditure on digital-related research and development and operation of Actually Home exceeded 139 million yuan, and digital realization also ushered in an important node.
Driven by digital empowerment and efficient operation capabilities, the revenue growth rate per unit area of the directly operated home furnishing stores reached 17.63%, and the annual gross profit margin increased by 7.77 percentage points year-on-year to 48.14%. In terms of expense ratios during the period, the selling expense ratio decreased by 2.76 percentage points to 9.13%, the management and research and development expense ratio decreased by 0.46 percentage points to 4.24%, and the financial expense ratio increased by 7.43 percentage points to 9.05%, of which the financial expense ratio was more obviously affected by the new leasing standard. Under the comprehensive impact, the company's net profit margin for the whole year increased by 2.63 percentage points year-on-year to 18.36%.
"With the advent of the digital era, we have won a broader space for the development of the enterprise itself by laying out in advance." For the future, Wang Ning said that he hopes to work with more enterprises to go better and better on the road of digital transformation.
Run at full speed to the home "number" field
According to data from the China Building Materials Industry Association, the scale of China's home building materials market has exceeded 4.5 trillion yuan, and the overall space of the industry is huge. Although the industry has formed some home chain retail and home improvement service brand enterprises with a certain scale, the overall market share of such enterprises is relatively small.
According to the information jointly released by the Department of Circulation Industry Development of the Ministry of Commerce and the China Building Materials Circulation Association, the cumulative sales of building materials and home furnishing stores above designated size in 2021 will reach 1.18 trillion yuan, accounting for only 26% of the market share of 4.5 trillion yuan.
In this context, Actually Home put forward an important strategy of integration of "big home" and "big consumption", and has opened 3 "Zhongshang World Li" shopping centers in the country, and will take Hubei as the base camp in the next three to five years to promote the development of shopping center chains and open up the second growth curve of physical stores.
With the accumulation of the past few years, actually home will continue to transform to the S2B2C business model and move towards the digital home improvement and home furnishing industry service platform in the future. Expand self-operated and IP business tracks, fully link to improve the design, construction, materials and home sales, logistics and distribution, home service and other linear service capabilities; increase investment in digital technology, while realizing the comprehensive digitization of enterprise operation and management, open to designers, construction teams, dealers, brand factories, logistics service providers and other partners on the ecological chain.
Wang Linpeng, chairman of Actually Home Group, believes that for traditional enterprises, digitalization is a challenge. For digital transformation to be successful, it must have two elements: one is the introduction of digital talent, and the other is to have enough funds to continuously invest. In each industry, only the head companies may be able to burn funds and attract digital talent.
Through the optimization of the organizational structure and the establishment of incentive policies that meet the characteristics of the company, the company maintains the advantage of talents, and the company increases the introduction of digital talents to ensure the rapid development of digital business. Establish a multi-level training system around the strategic requirements of enterprise digital transformation and promote the construction of manpower sharing centers.
As a leading enterprise in the home furnishing industry, Actually Home launched the "100 Counties 100 MALL" and "1000 Towns and 1000 Stores" projects, using its own resource advantages such as funds, technology, talents, and management to open up the sinking market, create new value, help rural revitalization, and better attract talents to return. With the smooth implementation of the project, actually home will bring more consumption and create more jobs for the sinking market.
For the future outlook, Beijing Capital Securities analysis pointed out that the sinking of the channel and the acceleration of digital transformation, the energy of the S2B2C digital industry service platform is expected to continue to be released, and the net profit attributable to the mother in 2022-2024 is expected to be 28.47/32.79/3797 million yuan, respectively.
Essence Securities gave Actually Home a "buy" rating, Actually Home is the leader in the domestic pan-home furnishing industry, the asset-light model of "direct operation + franchise" is developing efficiently, and it works with Ali to lead the new retail of home furnishing, while expanding its own IP business to provide home improvement and home integration services. Profitability continues to improve.
Whether it is accelerating the digital transformation of store expansion and superposition, or the improvement of the value of home stores, it is becoming a driving force that can support the long-term progress of the home. The future of the home furnishing industry belongs to companies that can truly create user value, which is the core strength of enterprises on top of financial data indicators. When home stores rush to the home "number" field at full speed, a new industry story is being told.
(This article does not constitute any investment advice, and the content of information disclosure is subject to the company's announcement.) Investors operate accordingly at their own risk. ）
Text/With the Wind
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