Xilinmen Furniture released its 2021 annual results, with revenue and attributable net profit up 38.2% and 78.3% YoY, respectively. The main furniture business, excluding the impact of the divested film and TV business, saw revenue, attributable net profit, and recurring attributable net profit grow 45%, 71%, and 51% YoY, respectively. The company's proprietary brands achieved solid results, with revenue from their retail business up 65% YoY. The company also expanded its hospitality client base and innovated cooperation models, growing revenue from this segment by 9% YoY. The company's stock is valued at a 19x 2022E PE, a premium over the Wind consensus-based peer average of 14x, for a target price of RMB36.67. The company is expected to report EPS of RMB1.93, 2.58, and 3.41 for 2022E, 2023E, and 2024E, respectively. The company is maintained as OVERWEIGHT.
