\u3000\u3 China Vanke Co.Ltd(000002) 242 Joyoung Co.Ltd(002242) )
Event: the company released its annual report for 2021, and achieved an annual operating revenue of 10.54 billion yuan, a year-on-year increase of - 6.09%; The net profit attributable to the parent company was 746 million yuan, a year-on-year increase of - 20.69%, and the net profit attributable to the parent company after deduction of non-profit was 597 million yuan, a year-on-year increase of - 12.29%; It is proposed to distribute a cash dividend of 10 yuan (including tax) for every 10 shares.
Comments:
The growth of export sales is bright, and the cooker business has become a new driving force for growth. The company's annual revenue decreased slightly year-on-year. We believe that the first reason is the large base in the same period last year (the revenue in 2021 was + 12.72% year-on-year in 2019); Second, the demand of China's small household appliances market has recovered slowly. In terms of business, in the main business of the company throughout the year, the revenue of food processing machine / nutrition cooker / Western Electric Appliance / Cooker business was 43.5/38.3/13.3/750 million yuan respectively, with a year-on-year revenue of - 17.87% / + 11.87% / - 13.49% / + 68.60% respectively. Among them, nutrition cooker products achieved good growth, and cooker products gradually became the main growth momentum of the company. In terms of sub regions, the company's domestic and export revenue in 2021 increased from - 11.73% / + 56.09% to 9.08/1.46 billion yuan respectively year-on-year, of which the proportion of export increased by 5.51 PCT to 13.83%, and the export revenue increased steadily. We believe that with the gradual recovery of the domestic market demand for small household appliances, the company's business performance is expected to improve gradually.
Profitability is under short-term pressure, and the company's expense control is strengthened. In 2021, the company's gross profit margin increased from -4.26pct to 27.79% year-on-year. If the impact of accounting standard adjustment is excluded, we estimate that the gross profit margin will decrease by about 1.5pct. Under the influence of the continuous rise of raw material prices, the company's profit performance is basically in line with expectations. The company actively carried out expense control, in which the sales and management expense rates were - 1.65pct / - 0.22pct to 14.99% / 3.33% year-on-year respectively; In addition, in order to improve the competitiveness of products, the company increased R & D efforts, so that the R & D expense rate increased from + 0.31pct to 3.39% year-on-year. Under the comprehensive impact, the net profit margin increased from -1.31pct to 7.07% year-on-year. The decline of net profit margin was slightly less than that of gross profit margin, and the cost control effect of the company was good.
Strengthen the construction of all channels, and share repurchase shows the confidence of the company. Offline: Based on the original tens of thousands of retail terminals, more than 100 shopping mall brand stores have been opened to further improve the offline sales network; Tiktok: we are constantly expanding new channels, such as strengthening cooperation with quiver and Kwai Fu, and by the end of 2021, the number of online channel users is about 25 million. In addition, the company announced during the year that it plans to repurchase shares and implement the equity incentive plan, which binds the interests of the company and core talents, which is conducive to the long-term and stable development of the company.
Investment suggestion: the leading enterprise in the small household appliance industry, and the brand strength continues to improve. Considering the slow recovery of China's small household appliance market demand and the pressure on the cost side of raw materials, we lowered the company's profit forecast for 2022 / 2023. It is estimated that the company's net profit attributable to the parent company from 2022 to 2024 will be 902 / 1012 / 1119 million yuan respectively (the original forecast value in 2022 / 2023 is 1117 / 1253 million yuan respectively), corresponding to 14 / 13 / 11 times of the current market value PE respectively, maintaining the "overweight" rating.
Risk tip: the development of new products is less than expected, the epidemic situation in China is repeated, and the price of raw materials is rising.
