\u3000\u3 China Vanke Co.Ltd(000002) 705 Guangdong Xinbao Electrical Appliances Holdings Co.Ltd(002705) )
Event: Recently, the company released its 2021 annual performance express.
In 2021, the company achieved a total operating revenue of 14.912 billion yuan, a year-on-year increase of 13.05%; The net profit attributable to the parent company was 792 million yuan, a year-on-year decrease of 29.15%; The basic earnings per share is 0.96 yuan / share; The weighted average return on net assets was 12.87%. As the ODM leader of small household appliances, the company has excellent R & D and manufacturing capacity. In 2021, the sales in domestic and foreign markets increased steadily, actively promoted diversified layout, and the product power and brand effect continued to improve.
Key investment points:
The performance of 2021q4 improved significantly month on month. Due to the upward pressure on the growth rate of RMB and the effective increase in the price of raw materials in the third quarter of 2021, some of them were affected by the upward pressure on the growth rate of RMB and the effective increase in the price of raw materials in the third quarter of 2021. According to the calculation of the performance report disclosed by the company, the revenue / net profit attributable to the parent company in the single quarter of 2021q4 was 4.209 billion yuan / 198 million yuan, with a year-on-year increase of 3.26% / – 5.26%, an increase of 3.51 PCT / 36.19 PCT compared with that in the single quarter of 2021q3, and the performance was significantly repaired. Considering that the effect of product price adjustment lags behind, the overall profitability of the company may continue to rise.
Domestic and foreign sales grew steadily throughout the year, and new products were launched to expand growth space. Under the repeated global epidemic and tight international logistics environment, the company’s overseas orders and shipments have been affected to a certain extent, but the market demand remains strong, which plays a good supporting role in the continuous and stable growth of the company’s revenue. According to the disclosed data, the company’s foreign revenue in 2021 was about 11.6 billion yuan, with double-digit growth year-on-year (+ 14%); China’s operating revenue was about 3.3 billion yuan, a year-on-year increase of 9%, of which the revenue of OEM brand Mofei was 1.66 billion yuan, a year-on-year increase of 10%. In addition, the company actively promoted the diversified layout of products. The new Mofei mr3300 floor washer was listed in February 2021. With low noise, long endurance, large capacity and other differentiated highlights and high cost performance, the cumulative Gmv market share reached 0.62% in two weeks, with strong market potential and competitiveness. Relying on the advantages of brand and channel, the company expands its product line and opens up growth space. In the future, it may fully benefit from the high dividend increase in the clean electrical appliance industry and the incremental revenue brought by continuous innovation.
For the first time, give the company a “buy” investment rating. It is estimated that the company’s diluted EPS from 2021 to 2023 will be 0.96/1.25/1.49 yuan respectively, and the corresponding PE will be 17.9/13.8/11.6 times calculated according to the closing price of 17.23 yuan on March 17. As the leading manufacturer of small household appliances, the company has the advantages of R & D and supply chain. Under the background of strong market demand, the export sales are stable, and the growth potential of domestic sales is constantly released. Considering that the measures taken by the company to deal with the sharp fluctuation of raw materials and exchange rate have gradually achieved results, the incremental contribution of product innovation to the future revenue scale is optimistic about the continuous repair of its subsequent profitability and performance growth. Therefore, through comprehensive analysis, the company is given a “buy” investment rating.
Risk warning: the sales of new products are less than expected; The cost of raw materials and shipping continued to rise; The RMB exchange rate fluctuates sharply; Industry competition intensifies.
