\u3000\u3000 Hangzhou Robam Appliances Co.Ltd(002508) (002508)
Event: on February 24, 2022, the company released the 2021 annual performance express. In 2021, the company's operating revenue exceeded 10 billion yuan for the first time, reaching 10.15 billion yuan, a year-on-year increase of 24.8%; The net profit attributable to the parent company was 1.33 billion yuan, a year-on-year decrease of 19.7%. In 2021q4, the company achieved an operating revenue of 3.08 billion yuan, a year-on-year increase of 22.9%; The net profit attributable to the parent company was - 10 million yuan, and the performance loss was mainly affected by the provision for asset impairment, which has been expected by the market.
Comments:
The traditional categories achieved steady growth and the industry competition pattern was further optimized. The main traditional categories of the company have achieved stable growth. According to ovicloud.com, in 2021, the industry's omni-channel retail volume of range hood, gas stove and disinfection cabinet was - 5.8% / - 9.3% / - 18.0% year-on-year respectively, and the omni-channel retail volume was + 4.1% / + 1.6% / - 8.8% year-on-year respectively. The price increase trend of the industry was obvious. The company's annual online retail volume / volume of range hood was - 1.0% / + 11.8% year-on-year, and offline retail volume / volume was + 3.2% / + 10.0%, both of which were better than the industry average. The market share of the company continues to consolidate its dominant position. By the end of 2021, according to the market monitoring report of Aowei, the market share of offline retail sales of "boss brand" range hood and gas stove is 30.5% and 29.3% respectively, which is + 2.3 and + 3.5pcts compared with the same period in 2020; The online retail sales of "boss brand" kitchen electric package accounted for 30.4%, which was + 2.4pcts compared with the same period in 2020; The market share of "boss brand" range hood in fine decoration channel is 36.2%, and the market share of the above categories ranks first in the industry.
The company's financial treatment is cautious and its medium and long-term development prospects are optimistic. According to the announcement, the net profit attributable to the parent company in 2021 was - 19.7% year-on-year. The main reason for the decline in performance was that in the second half of 21, with the tight liquidity of the real estate industry, some customers of the company defaulted on commercial bills. Based on the principle of prudence, the company accrued bad debt reserves for some bills receivable, totaling about 710 million yuan, including about 630 million yuan for Evergrande group and its member enterprises, accounting for 89%. We believe that the company is more cautious in relevant financial treatment, which will involve 100% withdrawal of Evergrande's business ticket, so that the company's 22-year performance will no longer be affected by this.
Looking forward to the future, we believe that the company can develop the second growth curve while maintaining the leading position of traditional categories. We expect the company to achieve revenue growth of about 15% in 2022; By category, the company's sales of range hoods in 2022 were + 15% year-on-year, and the sales of dishwashers and integrated steaming and baking machines were + 100% / + 50% year-on-year. Based on the policy tone of "steady growth" since this year, we are optimistic about the medium and long-term development of the company.
Profit forecast, valuation and rating: due to the company's provision for bad debts of defaulted commercial paper, we lowered the company's net profit forecast for 2021 to 1.334 billion yuan (down 31.76%); Considering the policy tone of steady growth this year and the trend of increasing industry concentration, we raised the net profit forecast for 2022-2023 to RMB 2.273 billion (up 2.06%) and RMB 2.680 billion (up 8.29%), and the current share price corresponding to PE is 24, 14 and 12 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.
