\u3000\u3 China Vanke Co.Ltd(000002) 677 Zhejiang Meida Industrial Co.Ltd(002677) )
Event: in 2021, the company achieved an operating revenue of 2.168 billion yuan, a year-on-year increase of + 22.4%; The net profit attributable to the parent company was 669 million yuan, a year-on-year increase of + 23.0%; Net profit deducted from non parent company was 639 million yuan, a year-on-year increase of + 18.0%. The net interest rate attributable to the parent company was 30.85%, with a year-on-year increase of + 0.16pct. In the fourth quarter of the year, the company realized an operating revenue of 634 million yuan, a year-on-year increase of + 6.7%; The net profit attributable to the parent company was 218 million yuan, a year-on-year increase of + 4.6%; Deduction of net profit not attributable to parent company was 201 million yuan, a year-on-year increase of – 3.2%. The net interest rate attributable to the parent company was 34.39%, with a year-on-year increase of -0.67pct.
The operation was stable throughout the year, and the Q4 revenue performance was slightly lower than expected. On the revenue side, the company’s 21q4 revenue increased by 6.7% year-on-year, with a slight slowdown. We expect the e-commerce channel to grow rapidly. According to the data of Aowei cloud, the overall online sales of 21q4 integrated stove industry increased by 31.1%, and the offline sales increased by 72.3%. The online sales of the company’s integrated stove products increased by + 110% year-on-year, which was stronger than the overall level of the market, while the offline sales were slightly lower. From the whole year of 21 years, the market share of Midea integrated stove products in e-commerce platform rose to 8.23%, especially during the “double 11” period of 21 years, the whole network sales exceeded 250 million yuan, with a year-on-year increase of 425%. We believe that the subsequent development and improvement of e-commerce, Ka, home decoration and other channels will be an important source of revenue growth of the company. In terms of products, according to ovicloud, the average online / offline price of the company’s integrated stoves in the past 21 years was + 258 yuan / – 186 yuan respectively. The sales volume of integrated stoves for steaming and baking in the online / offline channels accounted for 51.1% / 36.2% of the company’s total sales volume of integrated stoves. Compared with other head brands, the product structure of Meida still has room for improvement. On the performance side, the net profit attributable to the parent company in 21q4 was + 4.6% year-on-year, and the net interest rate was 34.39%, which was -0.67pct year-on-year. We expect that it is mainly due to the gradual emergence of raw material pressure. Previously, the company has done well in tapping potential and reducing cost, and Q4 has also continued. On the whole, the company’s net profit margin increased slightly by 0.16pct in the whole year of 21 years, the profitability and toughness were fully displayed, and the overall operation quality was still high.
Looking forward to the future, we believe that the company still has great development potential on the channel side and product side, and is expected to benefit from the dividends of the industry and maintain a good growth rate. On the channel side, the company continued to deepen the channel sinking. In February 22, the high-end new integrated stoves represented by X5 and X6 series appeared in Jingdong spark plan, and the market products were publicized and overweight, which is expected to obtain the potential incremental bonus of the track; The number of offline marketing terminals is leading the industry, with both profitability and stability of dealers. We look forward to the further increase of the number of high-quality dealers under the big business plan and the continuous improvement of channel efficiency; Channel development in high-level cities has growth potential. On the product side, there is still room for upgrading the product structure of the company’s integrated stove. With the increase in the proportion of high-end products such as steaming and baking, it offsets the cost pressure, and the net interest rate is expected to rise further.
Investment suggestion: the company creates a leading brand for the integrated stove industry, develops both channel sinking and store efficiency improvement, continuously optimizes the product structure, superimposes the logic of improving the penetration rate of the integrated stove, and enables long-term performance growth. It is estimated that the company’s net profit attributable to the parent company in 22-23 years will be RMB 788 / 924 million (the previous value is RMB 818 / 959 million), and the current stock price corresponds to 12.99x/11.08xpe in 22-23 years, maintaining the rating of “overweight”.
Risk warning: there may be differences between the performance express data and the financial data audited by the accounting firm; Macroeconomic fluctuation risk, especially in the real estate market; Market competition risk; Risk of sharp fluctuations in raw material prices; Overseas business and exchange rate change risk; Risk of loss of human resources; Risks of engineering channel customers.
