\u3000\u3 China Vanke Co.Ltd(000002) 441 Zhongyeda Electric Co.Ltd(002441) )
Zhongyeda Electric Co.Ltd(002441) mall has a fast and large volume, covering the long tail market
The company’s revenue in the first three quarters of 2021 reached 9.264 billion yuan, with a year-on-year increase of 21.2%, of which Zhongyeda Electric Co.Ltd(002441) mall realized sales of about 5.284 billion yuan (including tax) in the first three quarters of 2021, with a year-on-year increase of 43% Zhongyeda Electric Co.Ltd(002441) mall is a professional service platform for electrical digitization of industrial products cultivated by the company. The company covers small and medium-sized customers through the online platform and makes up for the blank area not covered offline. In 2017, 2018, 2019, 2020 and 2021 (the first three quarters) Zhongyeda Electric Co.Ltd(002441) mall revenue (including tax) is about RMB 460 million, RMB 17.1 billion, RMB 3.39 billion, RMB 5.12 billion and RMB 5.28 billion respectively, which will maintain high-speed growth and drive the improvement of the company’s overall performance. It is expected that the revenue of Zhongyeda Electric Co.Ltd(002441) mall will still maintain high-speed growth in the next few years.
The core competitiveness of the company is the synergy between the “3 + 1” network and the “3 + 1” team
“3 + 1” network refers to distribution network, logistics network, technical service network and Internet.
Distribution network: the company has a perfect sales network and provides customers with stable, timely and fast products and services through 55 subsidiaries and more than 100 offices covering major cities in China.
“Logistics network”: the company has effectively shortened the supply cycle of products nationwide through 8 logistics centers and 50 logistics distribution transfer warehouses covering core cities across the country.
“Technical service network”: provide customers with pre-sales technical support, industry solutions, personnel training, after-sales technical services, etc.
“Add Internet”: enable the linkage between the three networks to realize the industrial electrical distribution service platform fully covered by Wuxi Online Offline Communication Information Technology Co.Ltd(300959) Wuxi Online Offline Communication Information Technology Co.Ltd(300959) .
“3 + 1” team: the power distribution team and industrial control team focus on core customers such as complete set manufacturers, OEMs, system integrators and end users, and continuously optimize the customer structure in combination with the market situation; The small and medium-sized customer team focuses on small and medium-sized customers and realizes the digital coverage of fragmented market, small customer maintenance and secondary market channel development through the combination of online, offline and online; The technical service team is based on providing customers with services related to industrial electrical products, extended by industry supporting application solutions, and value-added services by providing customers in emerging industries with industry application solutions.
The company realizes the comprehensive coverage strategy of industry, products and regions through the collaboration between teams and networks.
The company is expected to enter the channel of net interest rate and roe improvement
The products distributed by the company cover nearly 200 brands and more than 700000 models. In 2020, the top five suppliers of the company are Schneider, abb, Siemens, Changshu switch and Delixi. This year, the company has expanded brands such as phoenix contact, Tianzheng, Delixi and OMRON. In 2022, the company will cooperate with SMC. With the expansion of the range of cooperative brands and models, the company can choose products with higher gross profit margin for distribution. On the other hand, the large amount of online platform revenue has improved the company’s operation efficiency. We believe that the online revenue of Zhongyeda Electric Co.Ltd(002441) mall has reached about half of the company’s revenue, and the company will enter the channel of improving net interest rate and roe.
Profit forecast
It is predicted that the company’s revenue from 2021 to 2023 will be 12.04 billion yuan, 13.50 billion yuan and 15.14 billion yuan respectively, and EPS will be 0.74, 0.77 and 0.91 yuan respectively. The corresponding PE of the current stock price will be 14, 13 and 11 times respectively. It will be covered for the first time and given a “recommended” investment rating.
Risk tips
Zhongyeda Electric Co.Ltd(002441) mall’s revenue development is less than expected; The demand for low-voltage electrical appliances and industrial control is less than expected; The bargaining power of the industrial chain is lower than expected; Market systemic risk;
