\u3000\u30 Shaanxi Zhongtian Rocket Technology Co.Ltd(003009) 11 Zhejiang Entive Smart Kitchen Appliance Co.Ltd(300911) )
Key investment points:
Start from OEM and focus on the field of kitchen appliances
Zhejiang Entive Smart Kitchen Appliance Co.Ltd(300911) was founded in 2003. It is a manufacturer of integrated solutions for high-end kitchen appliances and stainless steel cabinets integrating professional R & D, production, sales and service. In 2007, the company took the lead in applying side suction and lower exhaust technology, which continued to promote the development of integrated stove industry. In 2018, the intelligent factory project with a total area of nearly 45000 square meters was officially put into operation and continued to promote the integration of "industrialization, automation, informatization and intelligence". The company was listed on Shenzhen Stock Exchange on December 3, 2020.
Establish a diversified product matrix and build a three-dimensional sales channel
Focus on integrated stoves and establish a diversified product matrix. The company continues to optimize the product structure and establish a diversified product matrix. The company mainly focuses on integrated stove products and sells range hood, gas stove, integrated sink, dishwasher and other kitchen electrical products. The company adopts the production mode of "production based on sales", focusing on independent production and supplemented by outsourcing production.
Focusing on distribution, we will continue to promote the construction of three-dimensional sales channels. The company's sales mode mainly includes distribution mode, direct sales mode and export mode, among which the distribution mode is the main sales mode at present. Offline dealer channels: the company has more than 1300 dealers, covering 31 provinces (autonomous regions and municipalities directly under the central government); In terms of Engineering channels: the company actively develops engineering channels, with more than 20 new engineering projects in the first half of 2021; Ka channels: under the all-round cooperation with Red Star Red Star Macalline Group Corporation Ltd(601828) , Easyhome New Retail Group Corporation Limited(000785) , the company also vigorously develops Ka channels such as Gome and Suning; In terms of home decoration channels: more than 500 cooperative decoration enterprises have been added; Online e-commerce channels: the company continues to increase the development of e-commerce channels, strengthen E-commerce Team Construction and talent training, and actively carry out new retail business.
Pay attention to R & D and deepen product innovation. Yitian's R & D investment is at the forefront of the industry, and R & D expenses are also increasing year by year. From 2017 to the third quarter of 2021, the company's R & D expenses were 189054 million yuan, 269473 million yuan, 314042 million yuan, 314236 million yuan and 322041 million yuan respectively, accounting for 3.94%, 4.39%, 4.79%, 4.39% and 4% of the operating revenue respectively. The increasing R & D expenses provide sufficient financial guarantee for the company's R & D work year by year.
Investment advice and profit forecast
As a new type of modern kitchen appliance, the integrated stove has a continuous high view, and the market demand is expected to be further improved. The company adheres to the guidance of market demand, actively grasps the historical opportunity of the rapid development of the integrated stove industry in recent years, effectively integrates the company's resource advantages, pays close attention to both brand construction and channel development, and the business scale is expected to be further improved. We expect that the company's EPS from 2021 to 2023 will be 1.76, 2.38 and 3.36 yuan respectively, and the corresponding PE will be 30.55, 22.57 and 16.02 times respectively. The company will be rated as "overweight" for the first time.
Risk tips
Risks of macroeconomic fluctuations; Risk of serious decline in terminal demand; The risk of channel construction falling short of expectations, etc.
