\u3000\u30 Xuchang Ketop Testing Research Institute Co.Ltd(003008) 24 Shenzhen Crastal Technology Co.Ltd(300824) )
Event: in 2021, the company achieved an operating revenue of 847 million yuan, a year-on-year increase of + 20.84%, and a net profit attributable to the parent company of 108 million yuan, a year-on-year increase of + 8.11%; Among them, 2021q4 achieved an operating revenue of 304 million yuan, a year-on-year increase of + 16.69%, and a net profit attributable to the parent company of 40 million yuan, a year-on-year increase of + 23.36%.
The sales of non electric products are good, and the overseas revenue of private brands is growing rapidly. The company’s private brands have increased by 26.15% year-on-year in 21 years, accounting for 74.64% (accounting for 71.5% in 20 years); OEM / ODM was 7.5% year-on-year, accounting for 25.36% (28.5% in 20 years). 21q4 revenue was + 16.69% year-on-year, of which Beiding private brand was 28.3% year-on-year, accounting for 78.2%; OEM / ODM was – 11.9% year-on-year, accounting for 21.8%, and the revenue of private brands increased significantly.
In terms of categories, the company’s revenue of electrical products in 21 years was 440 million yuan, a year-on-year 10.1%, that of supplies and food materials was 190 million yuan, a year-on-year 92.56%, and that of toast stove, electric kettle and other products was 70 million yuan, a year-on-year 79.46%; Among them, the revenue of 21q4 electrical appliances was 170 million yuan, a year-on-year increase of 10.8%, and the revenue of supplies and food materials was 70 million yuan, a year-on-year increase of 105.8%. We believe that the rapid growth of supplies and food materials has made a major contribution to the company’s revenue; Among them, tableware, drinking utensils and related products increased by 97.33% year-on-year, and cooking utensils, food materials and other products increased by 88.03% year-on-year, simultaneously helping the company achieve balanced development of multiple categories.
From the perspective of outside China, the overseas revenue was 60 million yuan, 95.63% year-on-year, accounting for 9.29% (5.99% in 20 years). The company’s overseas revenue accelerated growth. By channel, the company achieved a revenue of 510 million yuan in China’s online channels, a year-on-year increase of + 18.18%; Offline channels achieved a revenue of 60 million yuan, a year-on-year increase of + 60.99%. The company’s diversified marketing strategy received positive feedback from the market. In offline channels, China’s offline consumption trend has been repaired. The company continues to increase investment in its own brand offline stores, adding 16 offline experience stores in Beiding in 21 years.
Raw materials and freight affect the profit level in the short term, and the sales expenses increase the investment
In 2021, the gross profit margin of the company was 49.45%, year-on-year -1.98pct, and the net profit margin was 12.81%, year-on-year -1.51pct; The gross profit margin of 2021q4 was 50.08%, year-on-year + 3.37pct, and the net profit margin was 13.1%, year-on-year + 0.71pct. The continuous rise in raw material prices, significant exchange rate fluctuations, insufficient chip supply, tight transportation capacity in the global shipping market, and significant increase in shipping costs may have a certain impact on the company’s gross profit margin.
In 2021, the company’s sales, management, R & D and financial expense rates were 25.55%, 8.09%, 3.63% and 0.57% respectively, with a year-on-year increase of + 1.69, -0.05, -0.14 and -0.15pct; In the quarter of 21q4, the rates of sales, management, R & D and financial expenses were 27.52%, 7.14%, 3.31% and 0.65% respectively, with a year-on-year increase of + 5.37, – 0.68, – 0.5 and – 1PCT. The company’s sales expense rate increased significantly, mainly due to the increase of the company’s online mall expenses due to the growth of independent brand business, and the corresponding expenses also increased significantly with the company’s strengthening of talent cultivation, brand promotion and the expansion of offline self operated stores.
New incentive scheme to ensure the development of the company
The company issued a 22-year equity incentive plan, which plans to grant 71 incentive objects 2481000 restricted shares, accounting for 1.14% of the total share capital, and the grant price is 7.7 yuan / share. Assessment objective: the revenue growth in 22 / 23 / 24 / 25 years shall not be less than 15% / 30% / 45% / 60% respectively compared with that in 21 years, and the performance growth shall not be less than 10% / 20% / 30% / 40% respectively compared with that in 21 years. Based on the current growth level of non electric products and overseas revenue of the company, we believe that the growth rate of equity incentive revenue of the company is the minimum target of the company.
Investment suggestion: the company’s revenue growth of non electric products and overseas private brands is bright, and the profit level of non electric products is high. Superimposed on the equity incentive target launched by the company, excluding the impact of short-term raw materials and shipping costs, the company is expected to grow both revenue and performance in the future. Based on the company’s annual report for 21 years, we expect the net profit of 22-24 years to be RMB 122 / 152 / 194 million (the value was RMB 130 and 170 million 22-23 years ago), and the corresponding dynamic valuation is 26.19x/21.01x/16.45x, maintaining the rating of “overweight”.
Risk tip: the sales of private brands are less than expected, the export orders are less than expected, and the rise in raw material prices and freight costs lead to a decline in profits.
