Marssenger Kitchenware Co.Ltd(300894) (300894)
Investment logic
Integrated kitchen is a rising star and ranks first in the industry in terms of revenue scale: the company was established about ten years later than comparable companies, but the configuration of start-up team is high, the strategic layout is clear, and the performance growth rate is significantly higher than comparable companies. From 2016 to 2020, the company's revenue and net profit CAGR were 47.2% and 50.4% respectively. In the first three quarters of 2021, the company realized a revenue of 1.6 billion, a year-on-year increase of 59.0%; The net profit was 270 million, with a year-on-year increase of 75.7%. The revenue scale exceeded Zhejiang Meida Industrial Co.Ltd(002677) for the first time and became the industry leader.
High R & D and high aesthetic Polish good products. The marketing layout has both long-term brand strength construction and short-term out of the circle: the company's R & D investment is at the leading level in the industry. In 2020, the company's R & D expenditure is 58 million, higher than that of Meida, 54 million, leading the second echelon of Yitian and shuaifeng. In 2016, the integrated stove entered a period of rapid development, and the head brand increased marketing investment. In 2020, the company's sales expense rate reached 25.0%, about 10 PCT higher than that of comparable companies. The company's marketing layout has both long-term brand building and short-term out of the circle, and actively grasp the new trend of content marketing, MCN of home furnishing and tuyere of home decoration.
Special rebate alleviated channel conflicts of interest and steadily expanded offline distribution: the company vigorously developed online channels. In 2017-2020, the online revenue CAGR was 53.0%, and the online revenue of 21h1 was 380 million, a year-on-year increase of 73.7%, accounting for 41.1% of the total revenue, far higher than the industry average. Through the special rebate policy for online sales, the dealers' enthusiasm for online procurement is mobilized to alleviate the conflict of channel interests. The accumulated online sales and reputation also empower offline. In terms of offline channels, the scale and quality of dealers have been steadily improved. Investment advice and valuation
The penetration promotion logic of the integrated stove industry continues to be verified by data. The company's product power is leading and has obvious first mover advantages in marketing and channels. As a leader, it is expected to fully benefit from the dividends of the rapid growth of the industry. It is estimated that the company's revenue from 2021 to 2023 will be RMB 2.34 billion, RMB 3.07 billion and RMB 4.01 billion respectively, with a year-on-year increase of 45.0%, 31.3% and 30.4%; The net profit was RMB 420 million, RMB 550 million and RMB 710 million, with a year-on-year increase of 53.0%, 30.6% and 29.4%. The current stock price corresponds to PE 47x, 36x and 28x. The management of the company is of high quality and strong performance growth. It gives the company a valuation of 40 times in 2022, with a target price of 54.3 yuan, covering it for the first time, and gives the company a "overweight" rating.
risk
The terminal consumption is weak, and the penetration rate is lower than expected; The entry of traditional kitchen electricity and household electricity faucets intensifies the risk of industry competition; Risk of rising raw material prices; Risk of lifting the ban on restricted shares.
