Bear Electric Appliance Co.Ltd(002959) (002959)
Event: on the evening of December 29, 2021, the company announced that in order to meet the needs of the company's development, optimize the company's management and improve operation efficiency, the company adjusted its organizational structure.
comment:
Adjust the company's development layout and add baby products and parts business division. At the business level, the company removed the original pot business unit and electric appliance business unit, and added parts business unit and baby products business unit. This year, the overall demand for small electricity in the kitchen is weak, while the decline in personal care, mother and baby and other categories is significantly less than that of kitchen electricity. According to the Amoy data, in November this year, the sales volume of Amoy line of Xiaoxiong's personal care category was + 20.6 / + 44.0% year-on-year respectively. The sales volume of Xiaoxiong's new baby hairdresser launched this year exceeded 1000 during the double 11. The adjustment of the division directly reflects the company's judgment on the development of subdivided tracks and the shift of strategic focus. On the basis of maintaining the advantageous categories such as small kitchen electricity, the division focuses on the development of personal care, mother and baby categories, so as to add new growth points to the company.
Digital management and divisional assessment of business division to improve operation efficiency. In terms of administrative structure, the company removed the operation management center and established a new digital management center and administrative service center. In the early stage, the company invested a lot in intelligent manufacturing and it construction. Digital operation will further improve the overall operation efficiency of the company. In addition, the newly established business division is also conducive to the company's management and special assessment of subdivided category businesses, encouraging employees to improve the company's efficiency.
The decentralization of channels has been steadily promoted, and the expansion of overseas markets is in progress. The company continued to promote the multi platform common development strategy. In November this year, the sales volume of the Amoy tiktok platform and Jingdong platform had dropped to 1.1 times from 2.3 times last year, and sales of voice over 20 million in November. In terms of overseas markets, the company's advantage is that the small electric egg steamer and yogurt machine in the kitchen are still on the list of Amazon's best seller in the United States, and the entry of offline markets in Southeast Asia is also ongoing. In addition, the company has reached cooperation with the French brand Blanc to position medium and high-end small household appliances. The multi brand strategy may help the company expand the receivable scale and adjust the company's product structure and brand image.
Profit forecast and investment suggestions: we believe that while maintaining the original advantageous categories of kitchen small electricity, the company will make efforts to open up business imagination space for new categories of maternal and infant care; The continuous promotion of brand going to sea, the implementation of multi brand strategy and the diversification of Chinese channels are conducive to the sustainable and balanced development of the company; The electronization of manufacturing and management can further tap the efficiency of the company. To sum up, we expect the company's operating revenue to be RMB 4.011/50.40/6.229 billion in 21-23 years, with a year-on-year increase of + 9.6 / + 25.6 / + 23.6%. It is expected that the company's net profit attributable to the parent company in 21-23 years will be RMB 303 / 402 / 520 million respectively, with a year-on-year change of - 29.2 / + 32.7 / + 29.1%, corresponding to pe33.1% 03 / 24.88/19.27 times, the current valuation of the company has a high cost performance ratio, is optimistic about the growth space of the small household appliance industry for a long time, and maintains the "buy" rating.
Risk factors: the macroeconomic downturn leads to low terminal demand, the company's new product launch is less than expected, the overseas market development is less than expected, and the price of raw materials remains high
