\u3000\u3 Jiangsu Eastern Shenghong Co.Ltd(000301) 055 Zhang Xiaoquan Inc(301055) )
The company issued the 2021 annual report. In 2021, the revenue was 760 million yuan, a year-on-year increase of 32.81%; Net profit deducted from non parent company was 742638 million yuan, with a year-on-year increase of 3.36%. Among them, the revenue of 21q3 / Q4 was 185 million yuan / 245 million yuan respectively, with a year-on-year increase of 32.40% / 34.63%.
New categories of kitchenware, kitchen appliances and household hardware grew rapidly, while traditional knives and scissors maintained stable growth. In terms of product categories, in 2021, the category of traditional advantageous products, knives and scissors, achieved a revenue of 526 million yuan, a year-on-year increase of 20.00%; The newly developed category of kitchenware and kitchen electricity realized an income of 149 million yuan, a year-on-year increase of 95.90%; The newly developed household hardware category achieved an income of 78.67 million yuan, a year-on-year increase of 47.77%.
Revenue from all channels maintained high growth. By channel, the distribution channel revenue in 2021 was 497 million yuan, a year-on-year increase of 30.25%; The revenue from direct sales channels was 232 million yuan, a year-on-year increase of 36.54%; The revenue from consignment channels was 23.86 million yuan, a year-on-year increase of 52.65%. The online revenue of the company’s core categories of knives and scissors is 250 million yuan, that of kitchenware and kitchen wires is 75.16 million yuan, and that of household hardware is 53.06 million yuan. The online revenue of the above three core categories accounts for 50.2% of the main business revenue. The annual revenue of domestic business was 748 million yuan, a year-on-year increase of 32.56%; The annual revenue of overseas business was 11.86 million yuan, a year-on-year increase of 50.91%.
In 2021, the company made significant progress in marketing and brand operation. The total exposure of the company’s tiktok (WeChat, jowl, micro-blog, Xiao Hong Shu, and stroll) is over 209 million, up 23 times compared with the same period. The total number of interactions was 290000, a year-on-year increase of 42 times; Up to 317 person times of cooperation have been promoted, with more than 6.61 million person times of exposure; Offline promotion exposure was 1.028 billion person times.
In 2021, the annual gross profit margin was 38.60%, with a year-on-year decrease of 2.13 PCTs. Among them, the gross profit margin of knives and scissors was 37.67%, with a year-on-year increase of -2.24pcts; The gross profit margin of kitchen appliances and kitchen appliances was 35.29%, with a year-on-year increase of + 0.65 PCTs; The gross profit margin of household hardware was 51.13%, with a year-on-year increase of -5.93pcts.
The company’s sales / management / R & D / financial expenses in 2021 were 15.43% / 6.91% / 3.01% / – 0.21% respectively, with a year-on-year change of + 0.90pcts / + 1.09pcts / – 0.50pcts / – 0.18pcts.
The company is an old brand enterprise of knife and scissors integrating design, R & D, production, sales and service. Taking advantage of its century old brand, the company continues to explore the development path of high-end, omni-channel and diversified modern hardware products, expand high-growth online channels, constantly broaden product lines, and give full play to the advantages of industrial clusters, production automation and informatization. The company is expected to continue to develop for a long time. The company’s revenue growth was in line with expectations. Due to the increase in sales expense rate due to the strengthening of brand launch, the net profit deducted from non parent company increased by 3.36% year-on-year. It is comprehensively estimated that the company’s revenue in 20222024 will be 940 million / 1.18 billion / 1.48 billion yuan. Considering the sales expenses invested by the company in the process of business expansion and the profit margin affected by the epidemic, the net profit is expected to be adjusted from 120 million and 153 million in 20222023 to 103 million / 126 million / 154 million in 20222024, compared with 27 / 22 / 18 XPE.
Risk tips: brand authorization risk, new product development and marketing risk, product quality control risk, outsourcing processing risk
