\u3000\u3000 Zhejiang Supor Co.Ltd(002032) (002032)
Event: on February 25, the company released the 2021 annual performance express. In 2021, the company achieved an operating revenue of 21.59 billion yuan, an increase of 16.1% over the same period of last year; The net profit attributable to the parent company was 1.94 billion yuan, an increase of 5.3% over the same period last year, in line with the previously disclosed performance forecast. Q4 company achieved a revenue of 5.92 billion yuan, a year-on-year increase of + 11.9%; The net profit attributable to the parent company was 700 million yuan, a year-on-year increase of - 8.1%; The net interest rate attributable to the parent company was 11.9%, down 2.6pcts year-on-year.
Comments:
The revenue increased steadily, and the selling expenses increased slightly. The company's revenue in 2021 was + 16.1% year-on-year, achieving rapid growth. Specifically, the company has successfully transformed its online channels in China and optimized its product sales structure; Overseas, due to the repeated epidemic, the transfer of SEB orders has increased rapidly. The amount of related party transactions with SEB group is expected to reach 7.13 billion yuan in 2021. The company's net profit attributable to the parent company for 21 years was + 5.3% year-on-year, slightly lower than the market expectation, which was mainly affected by the rise in the price of raw materials and the rate of sales expenses. According to the company's announcement, compared with the same caliber, the rapid rise in the price of major bulk raw materials led to a decline in the current comprehensive gross profit margin of 0.38pcts; The sales expense ratio in this period increased by 0.47pcts compared with the same period, mainly because the company increased the investment in e-commerce promotion expenses, advertising expenses and other resources.
Online reform took effect and domestic sales grew steadily. The company has increased resource investment in online channels, continued to promote online reform, and achieved stable growth in major categories. 1) Kitchen appliances: according to the business consultant data, the sales of 4q21 kitchen appliances of the company increased by + 6% year-on-year, of which the sales of rice cooker / electric stew pot increased by + 5% / + 8% year-on-year; In January 2022, the sales of kitchen electricity increased by + 0.5% year-on-year. 2) Household appliances: the company has made active layout, and this category has increased rapidly. According to the business consultant, the sales of household appliances of the company in 2021 were + 46% year-on-year, of which the sales of vacuum cleaner / mite remover were + 69% / + 75% year-on-year; In January 2022, the sales of household appliances increased by + 90% year-on-year.
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 1.94 billion yuan (down 0.35%), 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 21, 17 and 15 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.
