\u3000\u3000 Kingclean Electric Co.Ltd(603355) (603355)
Fali's independent brand + new energy parts business set sail again, covered for the first time, and given a "buy" rating
Starting from ODM OEM business, the company is a leader in China's high-end clean appliances. With the high prosperity of China's clean appliances and new energy parts track, the company is optimistic about the company's independent brand + new energy parts business relying on technology accumulation, which is expected to achieve high growth of revenue scale and steady improvement of profitability. We expect the net profit attributable to the parent company from 2021 to 2023 to be 563 / 951 / 1165 million yuan, corresponding to EPS of 0.98 / 1.66 / 2.03 yuan respectively, and the current share price corresponding to PE of 25.1 / 14.9 / 12.1 times. The valuation returns to a relatively low level. Considering the stability of the company's core competitiveness, we believe that the company still has the driving force of stable and sustainable growth. We cover it for the first time and give it a "buy" rating.
The global clean electrical appliance industry has broad prospects, and the iterative upgrading of categories continues to play a positive role. The share of head brands has increased
The scale of the global vacuum cleaner industry has grown steadily. The penetration rate of China's vacuum cleaner Market in Europe and the United States is still low, and there is much room for further improvement. In 2021, the floor sweeper was the largest single product in all sub categories of China's cleaning appliances. The share of floor washing machines increased by 14.0 PCTs year-on-year, and category innovation and iterative upgrading continued to be performed. From the perspective of brand competition, the market pattern is relatively stable. We are optimistic about the company's own brand, grasp the opportunities of the industry, and continuously improve the market share.
Three main lines of independent brand + core parts + ODM are laid out, and the business end of the company can expect high growth
(1) independent brands: the company has formed a matrix of five independent brands in China's small household appliance market, Wuxi Online Offline Communication Information Technology Co.Ltd(300959) channel layout is perfect, and the product end continues to be upgraded iteratively under the trend of high-end, wireless and intelligent. With the help of R & D accumulation, the company's explosive products such as Mojie m12promax, Lake Sirius s680 and biyunquan water purifier have strong strength against the competitive products. With the signing of top stream brand promotion, the growth space of independent brands is expected to be further opened. (2) Core parts: relying on the company's core technologies such as high-speed motors, the core parts business has witnessed rapid growth since 2020. The company expanded the production capacity of precision die casting business by acquiring new plants and acquiring Shanghai Pajie, an automobile aluminum alloy parts enterprise. At the same time, it cut into the supply system of world-famous vehicle manufacturers and grasped the opportunity of new energy parts. (3) ODM: the company has rich experience in intelligent manufacturing, steadily distributes production capacity in the world, improves global channels and has stable customer relations. It is expected to take advantage of the opportunities of product upgrading and category expansion to maintain a steady increase in business scale.
Risk warning: industry competition intensifies; Price fluctuation of raw materials; Business expansion of new energy parts is blocked
