\u3000\u3000 Zhejiang Supor Co.Ltd(002032) (002032)
Event: on January 26, 2021, the company issued the announcement of annual performance increase in 2021. It is estimated that the annual revenue will reach 21.59 billion yuan, a year-on-year increase of 16.1%; The net profit attributable to the parent company was 1.88 ~ 2.01 billion yuan, with a year-on-year increase of 1.7% ~ 9.0%; The net profit attributable to the parent company after deduction was 1.70 ~ 1.82 billion yuan, with a year-on-year increase of 6.4% ~ 14.3%. Q4 company is expected to realize a net profit attributable to the parent company of 640 ~ 770 million yuan, a year-on-year increase of – 16.9% ~ + 0.9%; The net interest rate attributable to the parent company was 10.7% – 13.0%, with a year-on-year decrease of 1.4 ~ 3.7pct. Affected by poor shipping and cost pressure, the net profit attributable to the parent company of 4q21 was slightly lower than expected.
Comments:
Domestic sales grew steadily, and export sales are expected to continue to improve. In China, the main categories of the company achieved stable growth. 1) Kitchen appliances: according to the business consultant data, the sales of 4q21 kitchen appliances of the company were + 15% year-on-year, of which the sales of rice cooker / electric kettle were + 11% / + 17% year-on-year. 2) Clean appliances: in 2021, the company actively laid out the layout, and this category grew rapidly. According to the online retail volume / volume of ovicloud network, it was + 38% / + 58% year-on-year, higher than that of the industry (+ 3% / + 31%); 4q21 online retail volume / volume + 35% / + 52% year-on-year. In terms of export, according to the announcement of related party transactions, due to the repeated epidemic of Q4 abroad and the arrival of peak sales seasons such as Christmas and new year, the company raised the amount of related party transactions with SEB group in 2021 to 7.13 billion yuan.
Actively carry out channel reform and gradually open the profit space. Since the new management took office, Zhejiang Supor Co.Ltd(002032) channel reform has undergone benign changes: 1) the online inventory system has been gradually improved: self operated and dealer sales have realized unified warehouse and distribution. The company expects to realize inventory of most businesses in the first half of 2022, reduce logistics costs and alleviate the financial pressure of dealers; 2) Increase in store direct sales system: tmall and JD pop flagship stores have been directly operated since 2020. In 2022, the company will continue to increase investment in the direct sales system and further improve the company’s profit space. 3) Increased investment in e-commerce channels: on the one hand, the number of e-commerce employees has increased and the inventory efficiency has been optimized; Tiktok is the only small appliance company that tiktok orders to Jingdong warehouse, and the company is responsible for most of the channel promotion costs, training and marketing personnel, and online revenue growth is faster than the whole.
Profit forecast, valuation and rating: in 2021, the company achieved stable growth in domestic sales, expanded clean appliances while consolidating advantageous categories, actively carried out channel reform, and further increased its export business. Taking into account the rise of raw materials and other factors, the company adjusted its net profit forecast for 2021 to 1.95 billion yuan (down 4.94%), maintained the net profit forecast for 2022-2023 to 2.43 billion yuan and 2.74 billion yuan, and the current share price corresponding to PE was 23, 18 and 16 times respectively, maintaining the “buy” rating.
Risk tip: the expansion of new products is less than expected, overseas sales are weak, and the price of raw materials is up
