Kingclean Electric Co.Ltd(603355) (603355)
Key investment points:
The prosperity of clean electrical appliances is high, and emerging categories are rising rapidly. According to AVC data, the market scale of clean electrical appliances is expected to exceed 30 billion yuan in 2021 and 70 billion yuan in 2025. Among them, floor washing machine and sweeping Siasun Robot&Automation Co.Ltd(300024) are the main growth forces of the industry. The market scale of sweeping Siasun Robot&Automation Co.Ltd(300024) in 2021 is expected to be 11.2 billion, a year-on-year increase of + 20%; Wireless vacuum cleaners were 9.4 billion yuan, a year-on-year increase of + 7.8%, and floor washers were 5.3 billion yuan, a year-on-year increase of + 311%. With the further improvement of the penetration rate of cleaning appliances, especially the rapid growth of new types of floor washing machines, the overall market scale of cleaning is expected to continue to expand, Kingclean Electric Co.Ltd(603355) as one of the leaders in the industry, is expected to benefit.
New energy auto zero + independent brand + ODM Troika work together to lead the growth of the company. 1) New energy automobile Zero: Aiming at the demand of high growth new energy automobile industry, acquire Shanghai Pajie to accelerate the layout of new energy parts. Based on the existing competitive advantages, Pajie's technical customer resources are integrated to inject new power into the growth of parts revenue. 2) Independent brand: in 2021, focus on the development of floor washing machine business, continue to launch differentiated new products, or will become a new growth pole; The forward-looking layout of intelligent kitchen small electricity has helped the company's performance continue to grow. 3) ODM business: with the relief of shipping pressure and the expansion of superimposed categories, ODM revenue is expected to usher in an inflection point of growth.
Investment suggestion: new energy auto zero, independent brand and ODM will become the troika driving the company's revenue growth. We estimate that the net profit attributable to the parent company from 2021 to 2023 will be RMB 624 / 1077 / 1507 million, the corresponding EPS will be RMB 1.52/2.62/3.66, and the current share price will be 19.60/11.35/8.11 times PE. For the first time, give a "buy" rating.
Risk tips: repeated covid-19 epidemic, intensified competition in the clean electrical appliance market, less than expected R & D results, tight shipping capacity, rising raw material prices, the floor washer market is in the introduction period of development, and consumers have not established consumption habits.
