\u3000\u3 China Vanke Co.Ltd(000002) 705 Guangdong Xinbao Electrical Appliances Holdings Co.Ltd(002705) )
Events
The company released the performance express for 2021, with an estimated revenue of 14.912 billion yuan, a year-on-year increase of + 13.05%; The net profit attributable to the parent company is expected to be 792 million yuan, a year-on-year increase of – 29.15%. In 21q4, the revenue is expected to be 4.209 billion yuan, a year-on-year increase of + 3.26%, and the net profit attributable to the parent is expected to be 198 million yuan, a year-on-year increase of – 5.26%, deducting 152 million yuan of net profit not attributable to the parent, a year-on-year increase of + 58.56%.
Brief comment
Revenue side: the overall revenue is relatively stable. In terms of subregions, the foreign revenue is expected to be 11.6 billion yuan, about + 14% year-on-year; China’s revenue was about 3.3 billion yuan, a year-on-year increase of about + 9%, including about 1.66 billion yuan for Mofei brand, a year-on-year increase of about + 10%, and about 240 million yuan for Dongling independent brand, a year-on-year increase of about – 21%; In 21q4, due to the shortage of shipping capacity abroad, the revenue is expected to be 3.1 billion yuan, about – 4% year-on-year; China’s revenue was about 1.1 billion yuan, about + 30% year-on-year, including about 560 million yuan for Mofei brand, about + 24% year-on-year, and about 100 million yuan for Dongling independent brand, about + 4% year-on-year.
Profit side: Q4 profitability has been repaired. In order to cope with the impact of exchange losses and the rise in the price of bulk raw materials, the company adjusted the price of the original products, but the effect of price adjustment lags behind. The company’s profit level 21q3 began to be gradually repaired, and the net interest rate attributable to the parent company Q4 is expected to be 4.7%, with a year-on-year decrease of -0.4pct, narrowing the decline and restoring the profitability. In order to improve the profitability, the company also took other relevant measures to actively cope with the rising cost pressure through new product R & D, production efficiency improvement and strategic procurement arrangements, and reduced the risk of exchange rate fluctuation by signing some forward foreign exchange contracts.
Be optimistic about the continuous development of new products. Mofei brand recently launched a new intelligent floor washer for cleaning appliances. The promotional price of the goddess Festival is 2599 yuan. The product adopts water dust circulation cleaning technology, has a strong endurance of 80min, can operate with low noise, 10 times widened the cleaning port, and has the functions of dry and wet waste separation. In 2021, Mofei, mingzhan and other brands continued to make efforts. The company’s series products, such as air purifier, heater and clean electric appliance steam mop, continued to be launched, and the category matrix continued to be enriched and improved.
Investment advice
The company has good brand and supply chain advantages and rich export experience. We expect that overseas demand is still relatively strong. With the gradual stabilization of raw material prices and the iteration of the company’s new products, the subsequent profitability of the company is expected to continue to repair. We estimate that the net profit attributable to the parent company from 2022 to 2023 will be 1.178 billion yuan and 1.319 billion yuan, with corresponding EPS of 1.42 yuan and 1.60 yuan respectively, and corresponding PE of current market value of 13.27 and 11.85 times respectively, maintaining the “buy” rating.
Risk tips
The promotion of independent brands is less than expected; The growth rate of export sales is lower than expected; Raw materials continued to rise.
