\u3000\u30 Xuchang Ketop Testing Research Institute Co.Ltd(003008) 24 Shenzhen Crastal Technology Co.Ltd(300824) )
Core view
Event ①: the company announced in its annual report for 2021 that it realized an operating revenue of 847 million yuan in 2021, with a year-on-year increase of 20.84%; The net profit attributable to the parent company was 108 million yuan, a year-on-year increase of 8.11%. Among them, the operating revenue in the fourth quarter was 304 million yuan, a year-on-year increase of 16.69%; The net profit attributable to the parent company was 397654 million yuan, a year-on-year increase of 23.36%. Event ②: the company plans to implement the restricted stock incentive plan in 2022. The incentive objects include 71 business and technical backbones such as the company’s directors, R & D directors and product managers. The performance evaluation target is based on 2021. The growth rate of private brand revenue from 2022 to 2025 is not less than 15% / 30% / 45% / 60% respectively compared with 2021, and the growth rate of net profit is not less than 10% / 20% / 30% / 40% respectively.
The revenue from domestic and export sales of private brands increased steadily, and the business of supplies and food materials performed well. The company’s own brand and OEM business achieved revenue of 632 million yuan and 215 million yuan respectively in 2021, with a year-on-year increase of 26% and 8%; The revenue of 2021q4 reached 237 million yuan and 66 million yuan respectively, with a year-on-year increase of 28% and 59%. The company steadily promoted category expansion around different food and beverage scenarios, and its own brands still achieved steady growth on the basis of high base. ① From the perspective of private brands by region, the domestic and export revenue of private brands in 2021q4 increased by 26% and 59% respectively year-on-year; ② The sales of electrical appliances in 2021q4 increased by 11% year-on-year, among which the revenue of steaming and stewing pot continued the rapid growth trend; The sales of 2021q4 supplies and food materials business increased by 106% year-on-year, accounting for 23% of the total revenue in the fourth quarter of a single year (a year-on-year increase of 10PCT). The high growth stems from the company’s active expansion from health preservation to cooking, coffee and other scenes. The company has successively launched enamel cast iron pot, coffee hand brewing pot, tea cup, bag tea and other new products, and the diversified product matrix is becoming more and more perfect.
The increase of raw materials and freight rates combined with the increase of marketing investment has put pressure on the profitability of the whole year, which has been improved in 2021q4. In 2021, the company’s gross profit margin and parent net profit margin were 49.45% and 12.81% respectively, with a year-on-year decrease of 2pct, mainly due to the pressure on the gross profit margin caused by the rise in the price of raw materials and the rapid rise of sea freight, while the increase in online marketing investment and the expansion of offline self operated stores led to the corresponding rise in the sales expense rate. With the steady increase in the proportion of private brand business, the profitability of the company has gradually improved. In 2021q4, the company achieved a gross profit margin of 50.08%, with a year-on-year and month on month increase of 3PCT and 2pct respectively. In the future, with the gradual implementation of domestic and export price increases, the profitability of the company still has room for improvement.
Category expansion and scene expansion were steadily promoted, and diversified channel operation continued to increase. With the ultimate industrial design ability and high-quality supply chain, the company provides product endorsement. In the future, it will continue to expand around multiple scenarios under the theme of food and drink and actively realize category expansion. The channel is based on the mode of “self management and Wuxi Online Offline Communication Information Technology Co.Ltd(300959) simultaneous development”, and actively promotes diversified marketing strategies tiktok, sales of new channels such as jitter and so on, and has been increasing rapidly. Meanwhile, the direct investment in stores has been increased. In 2021, the number of new outlets under 16 lines has reached 21 at the end of the year. The company has also actively promoted the strategy of independent brand’s going out to sea, exploring diversified channels to expand and expand all channel user contacts in overseas markets. Future growth can be expected.
Profit forecast and investment suggestions
Combined with the price change trend of raw materials and sea freight and the promotion of the company’s own brand strategy, it is predicted that the company’s net profit attributable to the parent company from 2022 to 2024 will be 135 / 170 / 204 million yuan (the original forecast from 2022 to 2023 is 153 and 189 million yuan), and the target valuation of DCF will be 23.65 yuan to maintain the rating of “overweight”.
Risk tips
Risk of new product promotion or consumer acceptance not reaching the expected level; The risk that the demand for overseas OEM / ODM orders does not meet the expectations; Risks of intensified industry competition; Risk of sharp rise in raw material costs
