\u3000\u3 China Vanke Co.Ltd(000002) 677 Zhejiang Meida Industrial Co.Ltd(002677) )
Core view
Event: the company released the annual performance express of 2021, and it is expected to achieve an operating revenue of 2.168 billion yuan in 2021, a year-on-year increase of + 22.41%; The net profit attributable to the parent company was 669 million yuan, a year-on-year increase of 23.04%, and the net profit attributable to the parent company after deduction was 639 million yuan, a year-on-year increase of 17.95%.
Comments:
The annual performance was in line with expectations, and the growth rate of Q4 single quarter performance decreased month on month. On the whole, the company’s operation in 2021 was in good condition, the annual performance was in line with expectations, and the sales continued to grow. Quarterly, the company achieved a revenue of 634 million yuan in 2021q4, a year-on-year increase of + 6.73%; In a single quarter, the net profit attributable to the parent company was 218 million yuan, a year-on-year increase of + 4.31%. The company’s revenue has increased steadily. We believe that the first reason is that the company continues to increase technological innovation and iterative upgrading, improve product competitiveness and drive the average price of the company’s products to increase; Second, the company actively promotes channel diversification and dual brand operation to drive the growth of product sales of the company; The growth rate of Q4 performance is slower than that of revenue and has slowed down compared with Q3. We believe that the main reason is that the gross profit margin is under pressure due to the rise in the price of raw materials.
The integrated stove continued to have a high outlook, and the company’s annual net profit margin increased. China’s integrated stove industry maintained a high boom. According to ovicloud, the retail volume of China’s integrated stoves in 2021 was + 41.7% offline and + 9.7% online year-on-year respectively; Retail sales offline and online were + 57.1% and + 31.4% respectively year-on-year; The average price offline and online were + 12.2% and + 19.7% respectively year-on-year. The company seized the opportunity of the rapid development of the industry, further strengthened management innovation, and maintained a steady and slight increase in profitability through effective measures such as improving efficiency and reducing cost. According to the calculation, the company’s net profit attributable to the parent company was about 30.9% in 2021, with a year-on-year increase of + 0.2pct. In the future, with the further optimization of the company’s channels and the improvement of product power, the company’s profitability is expected to continue to improve.
Layout high-end intelligent products and accelerate the sinking of market layout. At present, the market potential of China’s intelligent kitchen electric products is great. During the “double 11” festival in 2021, the company launched the integrated stove of intelligent voice control system. The introduction of differentiated and intelligent new products is expected to establish a core competitive advantage for the company. In addition, the company continues to accelerate the development of the sinking market. Recently, the company appeared in Jingdong “spark plan” exhibition with a variety of high-end new products represented by X5 and X6 series products, which were exhibited in 30 cities across the country. The owner of the sinking market was empowered through Jingdong home appliance stores to accelerate the expansion of the sinking market.
Investment suggestion: the boom of integrated stoves will benefit the company’s product sales and maintain the “buy” rating. The company is a leading enterprise in the integrated stove industry. It has adhered to product innovation and channel optimization for many years. In the future, with the launch of new products and the continuous promotion of the company’s new retail model of online and offline integration, the company’s performance is expected to continue to grow. We fine tune the company’s profit forecast. It is estimated that the company’s net profit attributable to the parent company from 2022 to 2023 will be 802 / 941 million yuan respectively (the original forecast value was 815 / 957 million yuan respectively), corresponding to 13 / 11 times of the current market value PE respectively, maintaining the “buy” rating.
Risk tip: the development of new products is less than expected, the epidemic situation in China is repeated, and the price of raw materials is rising.
