Zhejiang Entive Smart Kitchen Appliance Co.Ltd(300911) (300911)
The investment logic of Zhejiang Entive Smart Kitchen Appliance Co.Ltd(300911) ? With the completion of the new and old management changes, Yitian channel + product promotion has been greatly changed and improved. The competition pattern has not been determined. Yitian will pay close attention to the penetration of the integrated stove industry and improve the dividend. The track growth + share increase will lead to a high increase in Yitian's performance.
What has Yitian done right since its listing?
Remarkable results have been achieved in online transformation and adjustment. Since 2020, the share of Yitian online has basically ranked second in the industry, and the market share of 21m10 online sales has reached 12%, an increase of 7.3pcts year-on-year. The reasons for the success of Yitian online are as follows: 1) at the management level, the internal organizational structure is adjusted to supplement the weakness of product publicity; 2) At the channel level, better balance the interests of online and offline dealers; 3) At the product level, resources are concentrated on steaming and baking products, driving the company's share of steaming and baking products in the industry to be higher than that of the whole category, and the share of high price belt products in the industry to be higher than that of the whole category.
Can offline repeat the successful experience on the line?
Integrating the offline channel expansion process of Yitian, it is expected to achieve good results in the future. In the past, Yitian's offline market performance was weak. Since September 21, the offline progress has begun to take effect. The market share of 21m10 offline sales has reached 14%, with a year-on-year increase of + 12pcts. The company has advantages in developing offline businesses: 1) large direct gross profit space; 2) Wuxi Online Offline Communication Information Technology Co.Ltd(300959) linkage to balance the interests of dealers; 3) Marketing depth binding steaming and baking independent category. Looking back, the company's active layout of home decoration channels can further give play to the channel thrust, but the Ka channel still needs to improve the single store Gmv.
What is the future growth space?
Yitian's growth space depends on the improvement of industry penetration β And share increase α。 From the perspective of the industry, the short-term probability of the traditional cabinet leader will not compete directly with the integrated stove brand, and the traditional kitchen electric leader will enter more to promote the overall development of the integrated stove industry. In the future, with the gradual saturation of integrated kitchen store layout in the fourth and fifth tier cities, the importance of home decoration channel layout and penetration improvement in the first and second tier cities will be highlighted. From the perspective of the company, 1) high line cities have higher requirements for single store Gmv and greater initial investment, so it is necessary to recruit large merchants with stronger capital strength and resources; 2) For dealers, Yitian has a good grasp of product structure. If the proportion of steamed and roasted products continues to rise, Yitian's share can be further enlarged; 3) For dealers, marketing empowerment is gradually forming a positive cycle. Under conservative calculation, we expect Yitian's sales share to reach 7.4% in 2023, an increase of 2.1pcts compared with 2020.
Profit forecast and investment suggestions. It is estimated that from 2021 to 2023, the company's net profit attributable to the parent company will reach 219 / 296 / 402 million yuan, with a year-on-year increase of 52.2% / 35.1% / 35.9%. We believe that the reasonable valuation range of the company in 2022 is about 30 times. For the first time, it will be rated as "overweight".
Risk tips: there are risks of intensified market competition, rising raw material prices, fluctuations in the real estate market, less than expected consumer demand and single sales channel.
