\u3000\u3 Shengda Resources Co.Ltd(000603) 195 Gongniu Group Co.Ltd(603195) )
Event: the company released the annual performance express of 2021. In 2021, the company achieved a revenue of 12.422 billion yuan, a year-on-year increase of + 23.59%, a net profit attributable to the parent company of 2.813 billion yuan, a year-on-year increase of + 21.59%, and a deduction of non net profit of 2.672 billion yuan, a year-on-year increase of + 20.27%; 2021q4 achieved a revenue of 3.41 billion yuan, a year-on-year increase of + 17.40%, a net profit attributable to the parent company of 607 million yuan, a year-on-year decrease of – 15.09%, and a deduction of non net profit of 576 million yuan, a year-on-year decrease of – 14.16%.
In the fourth quarter, the revenue recovered steady growth, the main business maintained steady growth, and the contribution of new business increased. In terms of various businesses, it is expected that the main converter business will maintain steady growth, and the wall opening and LED lighting business are also expected to perform well with the blessing of the company’s front mounted smart home channel. In addition, the company has launched two major tracks of new energy and smart ecology, and successively listed new categories such as new energy charging gun / pile, smart door lock and smart clothes dryer. On the basis of the original smart wall opening and LED lighting business, new products such as smart door lock and clothes hanger further enrich the company’s smart home scene, and the two businesses are expected to contribute new increment to the company.
The pressure on the profit side was obvious in the fourth quarter. In 2021, the net profit attributable to the parent company was 22.65%, a year-on-year decrease of 0.37pct, and in 2021q4, the net profit attributable to the parent company was 17.79%, a year-on-year decrease of 6.81pct. Compared with the first three quarters, the profitability declined in the fourth quarter. On the one hand, we expect that the gross profit margin fell due to the high price of raw materials in the fourth quarter. On the other hand, the company may increase publicity after the launch of new products, and the cost investment is expected to increase, The comprehensive results in the decline of net interest rate, but the annual net interest rate is less affected. Under the background of high raw material prices, it highlights the excellent operating ability of the company.
Investment suggestion: it is estimated that the operating income of the company from 2021 to 2023 will be RMB 12.422/14.288/16.317 billion, with a year-on-year increase of + 23.6% / + 15.0% / + 14.2%, and the net profit attributable to the parent company will be RMB 2.813/3.290/3.816 billion respectively, with a year-on-year increase of + 21.6% / + 16.9% / + 16.0%. The company operates steadily, with multi category and multi-channel layout, continuously improving its competitiveness and maintaining the “overweight” rating.
Risk tip: macroeconomic recovery is less than expected; Price fluctuation risk of raw materials; Channel expansion was less than expected.
