\u3000\u3 Bohai Water Industry Co.Ltd(000605) 336 Zhejiang Sanfer Electric Co.Ltd(605336) )
In recent years, the scale of integrated stove industry has grown rapidly and become a new star in kitchen electricity industry. In 2021, integrated stoves will be one of the best growing household appliances in the household appliance industry. According to the omni channel push total data of ovicloud, from 2016 to 2021, the retail volume of integrated stoves in China increased from 910000 to 3.04 million, with an average annual compound growth rate of 27.28%. Ovicloud predicts that the retail volume of integrated stoves in China will reach 4.11 million units in 2023, and the CAGR will be 16.27% from 2021 to 2023.
The company’s equity incentive shows development confidence, and the unlocking conditions are increased year by year. From the perspective of assessment difficulty, the assessment objectives of the equity incentive plan are strict year by year, and the year-on-year growth rate of operating revenue in 2021, 2022 and 2023 shall not be less than 15% / 25% / 30% respectively. The company has set increasingly stringent equity incentive assessment objectives, which shows that the company has strong confidence in future operation and development.
The company attaches great importance to the innovation of core technology performance and adheres to the differentiation strategy. On the one hand, the company developed the side suction and lower row integrated stove earlier, and the technical level is leading in the industry; The company’s invention of removable and washable invention patents leads the growth of the industry and realizes the iterative upgrading of products. On the one hand, we need to understand the company’s demand, and upgrade the beauty and technology. On the other hand, we need to build a double value and accurate consumption technology. From 2019 to 2021, shuaifeng steaming and baking integrated stove led the national sales for three consecutive years. At the end of 2020, the company launched the steaming and baking integrated Pro / steaming and baking independent integrated stove, leading the market trend. The company has rich reserves of new products. In the future, it will make joint efforts in the market with steam baking independent integrated stove and steam baking integrated stove.
Zhejiang Sanfer Electric Co.Ltd(605336) the new capacity of 400000 integrated stoves is gradually released, helping the company narrow the capacity gap with front-line integrated stove enterprises. In 2017, the company has invested in the “industrialization demonstration project of 400000 new intelligent, high-efficiency and energy-saving integrated stoves”. By the end of 2020, the plant construction has been basically completed, and the capacity of new integrated stoves has been gradually released in 2021. The production capacity of shuaifeng integrated stoves will increase to 560000 units in the future, 3.5 times that of 2020.
Channel expansion + efficiency improvement, the company’s performance is expected to reach a higher level. Shuaifeng takes the stable offline distribution mode as the solid foundation of marketing, and Wuxi Online Offline Communication Information Technology Co.Ltd(300959) cooperates synchronously to carry out diversified channel layout in the whole decoration channel, Ka channel and engineering channel. The company quickly perceives the market changes, reserves the models and styles of multiple integrated stove categories, arranges channels and engineering products, combines the advantages of channels and marketing, improves the enthusiasm and revenue generating power of dealers, and is expected to achieve breakthrough growth in revenue in the future.
Investment advice: maintain the “recommended” rating of the company. It is estimated that the company’s earnings per share in 2021 / 2022 will be 1.84 yuan and 2.40 yuan respectively, with corresponding valuations of 13 times and 10 times respectively Zhejiang Sanfer Electric Co.Ltd(605336) is a leading enterprise in integrated stoves, with strong innovation and R & D ability and adhering to the differentiation strategy; Its new capacity of 400000 integrated stoves is gradually released, superimposed with channel diversification and marketing upgrading. The company’s future performance can be expected, which matches the stricter assessment conditions proposed by the company in the equity incentive year by year.
Risk tips: macroeconomic fluctuation risk, intensified market competition risk, real estate market fluctuation risk, “fine decoration” policy on integrated stove market risk, raw material price fluctuation risk, single product structure risk, capacity digestion risk, etc.
