This week’s research focus: summary of 21 annual reports of overseas household appliance enterprises
Overseas listed household appliance enterprises have successively released their annual reports for 21 years. This paper combs the contents of household appliance business in the annual reports of three overseas household appliance enterprises Whirlpool (China) Co.Ltd(600983) , Electrolux and iRobot, as well as Samsung Electronics and LG Electronics. It is found that:
1) for the whole year of 2021, except iRobot, the home appliance business revenue of the other four home appliance enterprises / overseas enterprises increased year-on-year, and the growth rate of home appliance business revenue of LG Electronics led several overseas enterprises Whirlpool (China) Co.Ltd(600983) profit side took the lead, and the growth rate of net profit of other home appliance enterprises / overseas enterprises’ home appliance business decreased under the external environment of raw material price pressure, tight shipping and exchange risk.
2) in the fourth quarter of the 21st year, due to the seasonal peak of 21q4 color TV market, Samsung Electronics and LG Electronics timely locked in the seasonal demand, the revenue of color TV and other home appliance businesses increased year-on-year, while the constraints of Whirlpool (China) Co.Ltd(600983) , Electrolux supply chain still exist, and the revenue growth slowed down year-on-year.
3) looking forward to 2022: Whirlpool (China) Co.Ltd(600983) will adjust the price based on the cost, and the growth rate of revenue is expected to be higher than that before the epidemic; Considering that supply constraints and inflationary pressures will persist, the profit margin target will be slightly reduced year-on-year; Electrolux’s price increase measures in 22 years will continue. It is expected that the performance of Europe will be basically flat for 21 years. It is optimistic about the revenue repair in North America and APMEA. Considering high inflation & interest rates, reduced government subsidies and other factors, it is expected that the revenue of Latin America will be reduced in 22 years; IRobot predicts that the company’s revenue growth will accelerate in 22 years and the net interest rate will rise compared with that in 21 years, demonstrating the confidence of the whole year’s development; Samsung Electronics and LG Electronics are optimistic about the demand for high-end products in the color TV industry in 22 years, and will deal with the impact of uncertain factors such as supply side and logistics through the introduction of high-end innovative products.
Whirlpool (China) Co.Ltd(600983) : the company’s annual revenue in 2021 was US $21.985 billion, with a year-on-year increase of 13.0% driven by strong consumer demand and cost based price increase; The annual net profit was US $1.783 billion, with a year-on-year growth rate of + 65.9% from negative to positive. In terms of profitability, the gross profit margin of the company in the whole year of 21 was 20.1%, year-on-year + 0.3pct, and the net profit margin was 8.1%, year-on-year + 2.6pct.
Electrolux: in 2021, the company achieved a revenue of SEK 125631 billion. The global price increase led to a year-on-year increase in operating revenue of 8.34%; The operating profit was SEK 6.801 billion, a year-on-year increase of + 17.71%. In the past 21 years, the market demand was strong, and consumers’ investment in family scenes continued. The company achieved a new high in revenue and performance, offset the pressure of cost and inflation through price increases, and the operating profit margin was + 0.43pct to 5.4% year-on-year.
IRobot: the company’s revenue in 2021 was US $1.565 billion, a year-on-year increase of + 9.4%, slower than that in 20 years; The net profit was US $30 million, a year-on-year increase of – 79.3%. Among them, the revenue of 21q4 was US $455 million, which was – 16.4% year-on-year in the fourth quarter due to the serious reduction of sales in the US market; The net profit was – 32 million US dollars, a year-on-year increase of – 336.3%, and the company’s profit was under great pressure.
Samsung Electronics: under the influence of the extended stay at home time of consumers caused by the epidemic, the proportion of the company’s consumer electronics business revenue reached a new high in 21 years, with a year-on-year increase of + 0.8pct to 20.3%; With the gradual decline of the impact of the epidemic and the reduction of consumers’ time at home, the proportion of the company’s color TV business decreased to 20.0% in the whole year of 21. 21q4 color TV market is at the seasonal peak. By timely locking in the seasonal demand, the company achieved a revenue of 1.535 billion yuan in consumer electronics business, a year-on-year increase of + 12.8%; However, the cost pressure led to a slight year-on-year decline in profits, and the profit margin of the consumer electronics sector decreased month on month.
LG Electronics: driven by the demand growth in North America, the revenue of 21q4 home appliances and air conditioning solutions increased by 17.7% year-on-year; The rise in raw material prices and logistics costs led to a year-on-year decrease in operating profit of 44.8% and a corresponding year-on-year decrease in profit margin of 11.1pct. Although the demand of 21q4 global market for home entertainment products represented by TV sets decreased, the company’s sales expansion of OLED TV products led to a year-on-year increase of 16.4% in revenue in the fourth quarter; Due to the recent intensification of competition in the track, the corresponding marketing costs increased, driving the operating profit to decline by 15.3% year-on-year, and the corresponding profit margin to decline by 6.5pct year-on-year.
Investment suggestion: in the short term, we believe that the target transaction level dominated by domestic sales / high dividend / full callback will be stronger, such as [ Hangzhou Robam Appliances Co.Ltd(002508) ], [ Zhejiang Entive Smart Kitchen Appliance Co.Ltd(300911) ], [ Zhejiang Supor Co.Ltd(002032) ], [ Gree Electric Appliances Inc.Of Zhuhai(000651) ], [ Midea Group Co.Ltd(000333) ], [ Haier Smart Home Co.Ltd(600690) ], [ Ecovacs Robotics Co.Ltd(603486) ], etc; In the medium and long term, it is still in a good position to gradually accumulate targets with growth. The growth comes from: 1) the acquisition of long-term overseas shares, such as white electricity and floor sweepers; 2) China’s growth, such as clean appliances and new kitchen appliances; 3) Transformation of the second curve, such as auto zero, photovoltaic and other 2B businesses.
Risk tip: the expansion of the epidemic situation, the risk of fluctuations in the real estate market, exchange rate and raw material prices, etc.
