\u3000\u3 China Vanke Co.Ltd(000002) 677 Zhejiang Meida Industrial Co.Ltd(002677) )
Event: the company issued the announcement of 2021 annual performance express. In 2021, the company achieved a total operating revenue of 2.168 billion yuan, 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%.
Q4 performance meets expectations. After conversion, the operating income of 2021q4 company was 634 million yuan, a year-on-year increase of + 6.66%; The net profit attributable to the parent company was 218 million yuan, a year-on-year increase of + 4.61%, which was in line with market expectations. According to the industrial online production and sales data, the overall production and sales growth of Q4 integrated stove industry were 16.4% and 18.0% respectively, which was slower than that in the first three quarters, of which the growth rates of Meida were 15.3% and 16.4% respectively, slightly lower than that of the industry. In Q4, the growth rate of production and sales of the company in December was significantly improved, 23.9% and 25.6% respectively, compared with + 6.0pct and + 9.2pct in November. The leading position of the company is 1.2 billion yuan, but the domestic market share of the company is still slightly lower than that of the same period last year, accounting for 1.2 billion yuan. As an emerging track with rapid expansion of market scale, the industry competition in the process is bound to face increased risks. As a leading enterprise in the industry for many years, the company has first mover advantages in products, R & D, brands, channels and other aspects, and has a greater chance of winning in the competition.
The profitability was improved month on month, and the product structure was improved. After calculation, the company’s annual net interest rate in the 21st year was 30.85%, which was + 0.16pct compared with the same period last year; The net interest rate of Q4 was 34.39%, with a slight year-on-year decline of -0.67pct, but it was significantly warmer than the first three quarters, an increase of + 2.91pct compared with Q3. In the period of high raw materials, it can still maintain the improvement of profitability, which is inseparable from the development of high-end brand and the optimization of price structure. Online, according to the sales of Taobao and jd.com platforms, the average transaction price of Q4 products in 21 years was + 68.8% and + 20.3% year-on-year respectively; Offline, according to the data of Aowei cloud in January 22, the market share of Meida brand at the price of 1.6 ~ 1.7w increased significantly year-on-year, and the market share at the price below 10000 yuan also increased to varying degrees. The price band was further widened and the brand audience expanded simultaneously.
The marketing side continued to make efforts, and Wuxi Online Offline Communication Information Technology Co.Ltd(300959) channels accelerated to expand. The company actively seeks innovation and change, attaches importance to marketing end investment, and is expected to further deepen the omni-channel operation layout. For example, on line, Meida plans to challenge the challenge of vibrato, aiming to actively layout new channels to expand the influence of social e-commerce, and the total video volume of related video tiktok is broken by millions. Offline, recently, Meida joined hands with Jingdong “spark plan” exhibition to display a variety of high-end new products in 30 cities across the country, and have in-depth exchanges with Jingdong home appliance store owners to empower the owners of sunken market and promote the rapid promotion of sunken market, so as to tap more potential incremental dividends. With the further optimization of brand and channel construction, the long-term development of the company will be even stronger.
Profit forecast and investment rating: the integrated stove industry is in a period of rapid expansion, the overall prosperity of the industry remains unchanged, and the long-term market space is broad Zhejiang Meida Industrial Co.Ltd(002677) as an industry leader, it has significant comparative advantages and resource endowment advantages in many aspects, and will be more calm in the face of industry competition. We expect the company’s revenue in the year of 21-23 to be RMB 2.168/25.47/2.982 billion, with a year-on-year increase of + 22.4% / + 17.5% / + 17.1%; The net profit attributable to the parent company was 669 / 788 / 927 million yuan, a year-on-year increase of + 23.1% / + 17.7% / + 17.7%, corresponding to 15.33/13.02/11.07 times of PE, maintaining the “buy” rating.
Risk factors: the price of raw materials continues to rise, the competition in the integrated stove industry intensifies, the company’s new product launch is less than expected, the company’s channel development is less than expected, and the epidemic situation in China is repeated
