\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 690 Haier Smart Home Co.Ltd(600690) )
Key investment points
Q4 performance growth outperformed revenue, and profitability was further recognized
1) annual performance in 2021: in 2021, the company achieved an operating revenue of 227.6 billion yuan, with a growth rate of 15.8% in the same caliber; The net profit attributable to the parent company was 13.1 billion yuan, a year-on-year increase of + 47%. 2) Q4 single quarter performance: in 2021q4, the company achieved an operating revenue of 57.59 billion yuan, a year-on-year increase of + 4.1%, and a net profit attributable to the parent company of 3.13 billion yuan, a year-on-year increase of + 21.6%. 3) The company accrued credit impairment loss of 520 million yuan, with a year-on-year increase of 350 million yuan. If this factor is excluded, the net profit of Q4 is about 3.451 billion yuan, with a year-on-year increase of + 4.4%.
China: the market share has increased in an all-round way, and the high-end brand Casati continues to increase in volume
The market share of major products continued to increase in an all-round way. In 2021, Haier China’s smart home business revenue reached 120.79 billion yuan, a year-on-year increase of + 22.2%; The operating profit was 7.456 billion yuan, a year-on-year increase of + 27.5%. The performance growth was due to the expansion of competitive advantage in the Chinese market, the high growth of casadi and the improvement of terminal customer acquisition capacity and transformation efficiency.
1) the market share of refrigerators / washing machines is still increasing. In 2021, the company’s refrigerator and washing machine realized revenue of 71.6 billion yuan and 54.8 billion yuan respectively, with a year-on-year increase of + 16% and + 13% respectively. The revenue of 2021h2 refrigerator and washing machine was 37.9 billion yuan and 29.8 billion yuan respectively, with a year-on-year increase of + 9% and + 4% respectively. According to the data of zhongyikang, the market share of the company’s offline retail sales of refrigerators and washing machines was 41.3% and 43.1% respectively, an increase of 2.1pct and 2.9pct respectively over the previous year; The market share of online retail sales was 37.8% and 40.4% respectively, up 2.7 PCT and 0.5 PCT respectively over the previous year.
2) the market share of air conditioning / kitchen electricity continues to increase. According to zhongyikang data, the offline and online market shares of air conditioning were 16.8% and 13.6% respectively, with a year-on-year increase of + 2.5pct and + 2.4pct respectively; The market share of kitchen wire was 7.1%, with a year-on-year increase of + 1.1pct.
3) improve the efficiency of channel distribution and logistics through the unified warehouse and distribution system and digital tools, and further improve the domestic market share of the company’s white power. Based on the product, brand and operation ability, the gap between dealers’ profitability and peers is expected to be further widened.
Casati, a high-end brand, leads the high-end market, and the income of high-end air conditioning and kitchen electricity is growing rapidly. 1) In the Chinese market, Casati’s sales revenue reached 12.9 billion yuan, a year-on-year increase of + 48.3%. 2) Casati’s refrigerator revenue, washing machine revenue and high-end air conditioning revenue increased significantly. Casati air conditioning’s revenue in 2021 was + 56.7% year-on-year. In 2021, the market share of Casati’s high-end air conditioner (4000 yuan + on hook, 10000 yuan + cabinet machine) reached 20.2%, with a year-on-year increase of 5.2pct. 2) Casati’s retail sales of kitchen appliances increased rapidly, and Casati’s kitchen electricity revenue in 2021 was + 95.1% year-on-year. The company grasps the blue ocean market of emerging categories of kitchen appliances. According to ovicloud, the offline retail sales of Casati dishwashers, electric ovens and electric steamers were + 203.5%, + 37.3% and + 361.2% respectively year-on-year.
Overseas: the independent brand strategy has been promoted, and the overseas layout has entered the harvest season
The company’s overseas business is growing rapidly. 1) The company’s overseas business revenue in 2021 was + 13% year-on-year; The operating profit was 5.93 billion yuan, a year-on-year increase of 48.1%; The operating profit margin reached 5.2%, with a year-on-year increase of + 1.2pct. The reasons for the continuous growth of overseas business revenue and the improvement of profit margin mainly lie in the continuous increase of the proportion of high-end product revenue, the increase of the proportion of online sales, the differentiated competitive advantage, the improvement of global supply chain layout and the improvement of manufacturing efficiency. 2) Haier adheres to high-end and scenario layout, and empowers the overseas market with the experience of Chinese layout. In 2021, the four markets of North America, Europe, Australia, New Zealand and Japan achieved revenue of 70.3 billion yuan, 19.7 billion yuan, 7 billion yuan and 3.5 billion yuan respectively, with a year-on-year increase of + 10.3%, + 19.5%, + 17.3% and – 3.4% respectively. The online revenue of high-end brands such as caf é, profile and Monogram in the North American market increased by + 40% year-on-year. 3) The company seized the opportunity of emerging market penetration, and the income in emerging markets increased rapidly. In 2021, the three markets of South Asia, Southeast Asia and Middle East Africa achieved revenue of 7.1 billion yuan, 4.7 billion yuan and 1.5 billion yuan respectively, with year-on-year growth of 30.5%, 15.0% and 22.7% respectively.
The gross profit margin increased against the trend, and the momentum of cost reduction and efficiency improvement was obvious
The company’s gross profit margin increased against the trend under the pressure of raw material cost. The company’s comprehensive gross profit margin in 2021 was 31.2%, a year-on-year increase of + 1.6pct. The company hedged the rising cost of raw materials by increasing the proportion of high-end product structure, streamlining SKUs, improving manufacturing efficiency, optimizing the layout of industrial chain and adjusting sales prices, and the gross profit margin increased against the trend.
The company reduces the cost and improves efficiency and reduces the overall rate. 1) The company’s sales expense rate, management expense rate and R & D expense rate in 2021 were 16.1%, 4.6% and 3.7% respectively, with a year-on-year increase of + 0.02pct, – 0.20pct and + 0.40pct respectively. 2) The company’s sales expense rate, management expense rate and R & D expense rate in Q4 of 21 were 18.2%, 5.0% and 3.7% respectively, with a year-on-year increase of -0.4pct, – 0.4pct and + 0.4pct respectively. 3) Digital transformation continues to improve efficiency. The company continues to promote the implementation of digital transformation platform and improve the ability of digital order distribution and supply chain efficiency; At present, the per capita number of customers received by the company’s direct sales personnel is + 38%, and the unit price of retail customers is + 12.5%.
Share repurchases were carried out steadily and dividends were paid to shareholders
The company’s stock repurchase plan is progressing steadily. 1) As of September 30, 2021, the company has repurchased 71.84 million shares through centralized bidding transactions, accounting for 0.76% of the total share capital of the company, and the paid amount is 1.994 billion yuan. 2) On March 30, 2022, the company announced that it plans to buy back 1.5-3 billion yuan of A-Shares at a price of no more than 35 yuan / share, which will be used to implement the company’s employee stock ownership plan or equity incentive, and build a long-term incentive and restraint mechanism for the shareholding of the management team. 3) According to the company’s announcement on March 30, 2022, the company plans to distribute a cash dividend of RMB 4.60 (including tax) to all shareholders for every 10 shares, with a stable return on investment.
Profit forecast and valuation
Looking forward to this year, in terms of domestic sales, with the promotion of set system and the development of kitchen electricity and air conditioning, Casati will continue its high growth momentum and lead the growth of revenue; At the same time, through digital transformation, the whole process and efficiency will be improved, and the profitability of domestic sales will be further improved. Overseas, the company improves efficiency through high-end licensing and operation, and the overseas business performance is worth looking forward to. We believe that in the next few years, the company’s global operation will usher in a harvest period, the management of domestic and foreign sales business will be improved, the operation efficiency will be improved, and the profitability will be continuously improved. At the same time, the company’s long-term brand layout through smart family and three winged bird scene has a promising future. To sum up, the company’s EPS is expected to be 1.61/1.85/2.11 yuan in 22-24 years, and the corresponding PE is 14x / 12x / 11x respectively, maintaining the “buy” rating.
Risk tips
The price rise of raw materials exceeded expectations; The demand is less than expected; Intensified market competition
