\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 690 Haier Smart Home Co.Ltd(600690) )
Company performance: in 2021, the company achieved a revenue of 227.56 billion yuan, yoy + 8.5%. Excluding the impact of stripping CAOS business (Industrial Internet platform), yoy + 15.8% under the same caliber, and recorded a net profit attributable to the parent company of 13.07 billion yuan, yoy + 47.1% and EPS of 1.4 yuan. The company’s performance met expectations. Among them, the company’s Q4 single quarter event revenue was 57.59 billion yuan, yoy + 4.1%, and the net profit attributable to the parent was 3.13 billion yuan, yoy + 21.6%. The company plans to pay a dividend of 4.6 yuan (including tax) for every 10 shares, and the dividend rate of A-Shares is about 2.1%. In addition, the company will repurchase the company’s shares within the next 12 months at a price of no more than 35 yuan / share, with a repurchase scale of 1.5-3 billion yuan. The repurchased shares are mainly used for equity incentive or employee stock ownership plan.
External demand drives growth, while the upgrading of domestic demand quality pushes up the gross profit margin level: (1) affected by the epidemic, the demand for large volume and health household appliances in the United States, Europe, South Asia and other markets increases. According to GfK data, the global household appliance retail sales increased by 10% year-on-year in 2021. Driven by this factor and the active expansion of the company’s overseas market, the company’s overseas business achieved a revenue of 113.7 billion yuan and a year-on-year increase of 13%, Benefiting from the upgrading of category structure and the company’s cost reduction and efficiency control, the gross profit margin of the company’s overseas business increased slightly by 0.2 percentage points to 28.2% year-on-year against the background of the rise in the price of raw materials; (2) The company’s business in China achieved a revenue of 111.85 billion yuan, yoy + 4.3%, and achieved steady growth under the pressure of China’s real estate industry. It mainly benefited from the company’s contact network layout, digital platform and operation system construction to improve the terminal customer acquisition capacity and transformation efficiency. With the upgrading of China’s demand quality and the positive layout of the company’s high-end line, the company’s high-end line grew rapidly, In 2021, the revenue of Casati series products reached 12.9 billion yuan, more than yoy + 40%. Under the background of the rise of raw materials, the gross profit margin of China business increased by 3.1 percentage points to 34.0% year-on-year, benefiting from the increase in the proportion of high-end products.
Digital transformation, excellent cost control: the company’s annual comprehensive gross profit margin in 2021 was 31.2%, up 1.6 percentage points year-on-year. In addition to benefiting from the optimization of product structure, the digital transformation of the company’s supply chain also played a great role in promoting the improvement of operation efficiency and the disposal of low gross profit businesses. The annual sales expense rate of the company was 16.1% and the management expense rate was 4.6%. After excluding the business part of CAOS, it decreased by 1.1 percentage points and 0.5 percentage points respectively year-on-year under the same caliber, mainly benefiting from the digital transformation of the Chinese market. The financial expense ratio was 0.3%, a year-on-year decrease of 0.3 percentage points, mainly due to the optimization of debt structure and the reduction of interest expenses by converting convertible bonds into shares, repaying loans and replacing high interest rate loans.
Profit forecast and investment suggestions: we expect the net profit of the company in 2022 and 2023 to be 15.22 billion yuan and 17.38 billion yuan, yoy + 16.5% and + 14.2%, EPS to be 1.6 yuan and 1.8 yuan, P / E of A-Shares to be 14x and 12x respectively, and P / E of H shares to be 13X and 11x respectively. We are optimistic about the promotion of the company’s smart home ecological strategy and the improvement of operation efficiency. At present, the valuation is relatively reasonable, and we maintain the investment proposal of “buying”.
Risk tips: epidemic fluctuation, raw material price fluctuation, exchange rate fluctuation, overseas business operation risk
