\u3000\u3 China Vanke Co.Ltd(000002) 139 Shenzhen Topband Co.Ltd(002139) )
Performance review
On the evening of March 21, 2022, the company released its 2021 annual report, realizing an operating revenue of 7.767 billion yuan, a year-on-year increase of 39.69%; The net profit attributable to the parent company was 565 million yuan, a year-on-year increase of 6.16%; The net profit deducted from non parent company was 432 million yuan, with a year-on-year increase of 13.28%, and the revenue slightly exceeded expectations.
Business analysis
The annual revenue exceeded expectations, and the rapid growth of multiple businesses went hand in hand. The annual revenue growth of the company in 21 years reached a new high in recent three years. The tool sector has entered the supply system of multiple head customers, and horizontally expanded garden tools and other products except electric tools. The market share has increased steadily, and has become the largest business of the company, with an annual revenue of 2.994 billion yuan, an increase of 43.36% at the same time; The home appliance sector actively broke through major customers and launched innovative products, with an annual revenue of 2.959 billion yuan, an increase of 37.36% at the same time; The annual revenue of new energy business was 1.241 billion yuan, an increase of 38.86%, including 881 million yuan from energy storage business and 360 million yuan from green travel business, which mainly benefited from the rapid growth of household, portable energy storage business and charging pile of new energy vehicles. The customer structure has been continuously optimized, and the company’s head customers have exceeded 100, accounting for more than 80% of its revenue.
The shortage of raw materials affects the gross profit, and the net profit is under pressure in the short term. Affected by the shortage of upstream raw materials and the transfer of some goods at high prices, the company’s annual gross profit margin fell by 3.1pp, and the horizontal comparison with the industry was in the normal range. In addition, in 21 years, the company implemented organizational reform, established more than 40 Bu organizations at the front end, and continued to increase R & D investment. During the reporting period, the sales / management / R & D expense rate increased by 0.3pp/0.07pp/0.15pp respectively, and the net investment income of the company during the superposition reporting period decreased by 204 million yuan compared with last year, The provision for impairment and equity incentive expenses increased in the fourth quarter. During the reporting period, the company’s net profit attributable to the parent company was 565 million yuan, an increase of 6.16% at the same time, slightly lower than expected. We believe that with the alleviation of the shortage of upstream raw materials and the expansion of the company’s scale effect, the short-term pressure on the net profit eased, and the medium and long-term growth trend remained unchanged.
The intelligent controller track will grow for a long time, and the company’s “four electricity and one network” continuous innovation drives high performance. In the long run, the trend of specialization in the intelligent controller industry has deepened. Driven by the continuous innovation of motor, electronic control, battery, power supply and Internet of things platform technology, the company has actively turned to the leader of intelligent controller ODM JDM. It plans to spin off its subsidiary research, control and listing, continue to focus on its main business, and is expected to maintain a compound growth of 30% in the next three years.
Profit adjustment and investment suggestions
Combined with the latest performance of the company and the increased provision for asset credit impairment, we adjusted the company’s profit forecast for 22-23 years to 861 million yuan (- 7%) / 1.12 billion yuan (- 14%), predicted 24-year revenue to 18.6 billion yuan, net profit attributable to the parent company to 1.511 billion yuan, corresponding to 16 / 12 / 9 times of PE, and maintained the “buy” rating.
Risk tips
Business synergy was less than expected, RMB exchange loss, and the spin off progress of subsidiaries was less than expected.
