\u3000\u30 Xuchang Ketop Testing Research Institute Co.Ltd(003008) 24 Shenzhen Crastal Technology Co.Ltd(300824) )
Event: the company released its annual report for 2021. The annual revenue was 847 million yuan, a year-on-year increase of 20.8%, and the net profit attributable to the parent company was 108 million yuan, a year-on-year increase of 8.1%. In Q4 of 21 years, the company realized an income of 304 million yuan, a year-on-year increase of + 16.7%, and the net profit attributable to the parent company was 40 million yuan, a year-on-year increase of 23.4%. The company plans to distribute a cash dividend of 2.5 yuan for every 10 shares. Increase 5 shares for every 10 shares to all shareholders with capital reserve.
The performance grew against the trend and the profitability led the industry.
In 2021, the total operating revenue was 847 million yuan, a year-on-year increase of 20.8%; Among them, Q4 revenue was 304 million yuan, a year-on-year increase of 16.7%. The steady revenue performance is mainly due to the continuous growth of independent brand business.
In 2021, the company’s comprehensive gross profit margin was 49.5%, with a year-on-year decrease of 2pct, which was mainly affected by the rise of raw material prices and sea freight. In 2021, the company’s OEM business and self owned brand gross profit margin decreased by 4.4pct and 2.9pct respectively. According to the data of a single quarter, the company’s Q4 gross profit margin was 50.1%, up 3.4pct year-on-year and 2.0pct month on month. Mainly due to the increase in the proportion of private brands, the overall gross profit margin increased.
The brand strength is prominent, and the domestic and foreign sales force together. In 2021, the company’s independent brand achieved a revenue of 630 million yuan, a year-on-year increase of 26.2%. Beiding overseas continued to grow, and its customer base accelerated its penetration from overseas Chinese to all consumers, with a revenue of 59 million yuan, accounting for 9.3% of its own business income, up from + 3.3pct last year. Beiding brand’s popularity and user trust at home and abroad have been continuously improved.
Multiple channels are developed simultaneously, and the customer unit price of short video channel is the highest. From the point of view of sales channels, the online sales channel is still the main sales channel, accounting for 89% of sales, of which, the revenue of the platform is +451.86%, and the average consumption per capita is 1129 yuan, which is 105% higher than the online direct sale tiktok unit price (549 yuan). In offline channels, self operated accounts for 4.12%, with a year-on-year increase of + 2.6pct. Experience stores have expanded from Shenzhen to 6 cities, and the self operated store model can be copied after preliminary verification.
The expansion of multiple categories is smooth, and the performance of non electric categories is brilliant. The revenue of electrical products reached 440 million yuan, a year-on-year increase of + 10.1%, of which the steam stew pot increased rapidly, a year-on-year increase of + 75.6%; The revenue of supplies and food materials was 190 million yuan, a year-on-year increase of + 92.6%, and the proportion of independent brands increased by 10.2pct to 29.7%. The company continues to improve its product matrix, forming four use scenarios of health preservation, drinking water, cooking and coffee, focusing on the needs of improved diet.
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 will be unlocked in 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. Demonstrate the confidence of the company in long-term operation.
Investment suggestion: as a high-quality enterprise of small household appliances, the company has obvious competitive advantage in the high-end market, continuously highlights its brand strength, smoothly expands its categories, has balanced channels, and has the initiative in product pricing. It is estimated that the company’s EPS from 2022 to 2023 will be 0.62 yuan and 0.77 yuan respectively, which will be raised to the “buy” rating.
Risk warning: price rise of raw materials and sea freight, etc.
