\u3000\u30 Xuchang Ketop Testing Research Institute Co.Ltd(003008) 24 Shenzhen Crastal Technology Co.Ltd(300824) )
Key investment points
Performance summary: the company released the annual report of 2021. In 2021, the company achieved a revenue of 850 million yuan, a year-on-year increase of 20.8%; The net profit attributable to the parent company was 110 million yuan, a year-on-year increase of 8.1%; Deduct non net profit of RMB 100 million, with a year-on-year increase of 11.6%. In a single quarter, Q4 company achieved a revenue of 300 million yuan, a year-on-year increase of 16.7%; The net profit attributable to the parent company was 40 million yuan, a year-on-year increase of 23.4%. The company’s Q4 performance is better than revenue, and its profitability is improved month on month.
The expansion of multiple categories and scenarios, and the continuous growth of independent brands. Benefiting from the rich product matrix, the company’s independent brand has achieved rapid growth. In 2021, the company’s independent brand achieved a revenue of 630 million yuan, a year-on-year increase of 26.2%. Specifically, the company’s electrical products achieved a revenue of 440 million yuan, a year-on-year increase of 10.1%; The operating revenue of supplies and food products reached 190 million yuan, a year-on-year increase of 92.6%, and the proportion in the business revenue of independent brands increased from 19.5% in the same period last year to 29.7%. In addition, the company’s OEM business also achieved steady growth, with an annual revenue of 210 million yuan, a year-on-year increase of 7.5%.
Q4 improved profitability. In 2021, the company’s comprehensive gross profit margin was 49.5%, with a year-on-year decrease of 2PP, which was mainly affected by the rise of raw material prices and sea freight. In 2021, the gross profit margin of the company’s OEM business and independent brand decreased by 4.4pp and 2.9pp respectively. According to the data of a single quarter, the company’s Q4 gross profit margin was 50.1%, with a year-on-year increase of 5.1pp and a month on month increase of 2PP. With the stabilization of raw material prices and the optimization of the company’s product structure, the company’s profitability in a single quarter has improved. Overall, the company’s sales expense ratio in 2021 was 25.6%, an increase of 1.7pp year-on-year; The management expense ratio was 11.7%, a year-on-year decrease of 0.2pp. Overall, the company’s net interest rate was 12.8%, a year-on-year decrease of 1.5pp.
Equity incentive shows long-term business confidence. The company issued a restricted stock incentive plan and plans to grant 2481000 restricted shares, accounting for 1.14% of the company’s share capital, which is divided into four phases. Performance assessment objectives: Based on 2021, the company’s independent brand business is required to have a revenue growth rate of no less than 15% / 30% / 45% / 60% and a performance growth rate of no less than 10% / 20% / 30% / 40% from 2022 to 2025. On the one hand, improve the company’s long-term incentive mechanism and mobilize the enthusiasm of the company’s management and core employees; On the other hand, it also shows the confidence of the company in long-term operation.
Profit forecast and investment suggestions. As a high-quality enterprise of small household appliances, the company has obvious competitive advantages in the high-end market. It is estimated that the company’s EPS from 2022 to 2024 will be 0.61/0.77/0.97 yuan respectively, maintaining the “buy” rating.
Risk tip: the price of raw materials may fluctuate sharply, and the expansion of new products is less than expected.
