\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 690 Haier Smart Home Co.Ltd(600690) )
Event: the company released the annual report of 2021. In 2021, the company achieved a revenue of 227556 billion yuan, an increase of 8.5% over 2020; The net profit attributable to the parent company was RMB 13.7 billion, an increase of 67.1% over 2020. The company announced the annual profit distribution plan for 2021 and distributed a cash dividend of 4.60 yuan for every 10 shares. The company issued a new round of repurchase plan. The reverse repurchase of A-share shares of no more than 3 billion yuan will be used for equity incentive / employee stock ownership plan.
Comments:
In 2021, the company's performance met expectations. In 2021, the company's revenue was 227556 billion yuan, a year-on-year increase of 8.5%; Excluding the impact of the divestiture of CAOS and ririshun logistics business, the company's revenue in 2021 increased by 15.8% year-on-year according to the same caliber. The company's revenue has maintained rapid growth, mainly because: ① give full play to its advantages in high-end brand layout, complete sets of products, scenario schemes and so on, enlarge the single user value and realize the rapid growth of high-end brands; ② Rely on the leading global layout, active online channel transformation, digital marketing and the integration and coordination of global resources to continuously improve the overseas market share; ③ By upgrading and expanding the whole process digital transformation of contact network layout and market organization, the terminal's customer acquisition ability and transaction transformation efficiency are improved.
The profitability of the company has improved against the trend and the operation quality is good. (1) In 2021, the gross profit margin of the company's sales was 31.2%, with a year-on-year increase of 1.6 percentage points. Against the background of the sharp rise in the cost of upstream raw materials and parts, the company digested the cost pressure by improving the proportion of high-end products, optimizing the product structure, digital transformation of supply chain and improving operation efficiency, so as to realize the contrarian rise of gross profit margin. In terms of expenses, excluding the influence of CAOS business, the company's sales expense rate and management expense rate were optimized by 1.1 percentage points and 0.5 percentage points respectively year-on-year in 2021, mainly due to the improvement of operation efficiency and cost investment efficiency brought by China's digital transformation, as well as the rapid growth of overseas market scale and the improvement of operation efficiency. (2) In 2021, the net cash flow from the company's operating activities was 23.130 billion yuan, an increase of 5.52 billion yuan year-on-year; The cash content of net profit in 2021 is 1.75, and the operation quality is good. The net cash flow from the company's operating activities was significantly optimized year-on-year, mainly due to the rapid growth of net profit and the improvement of operating efficiency.
The growth rate of Chinese smart home business is higher than that of overseas smart home business, and the income and profitability of overseas business reach a new high. (1) In 2021, China's smart family business income was 120791 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 growth rate of the company's business in China exceeds that of the industry, mainly due to: ① the increase of market share and the further expansion of China's competitive advantage; ② Casati maintained high growth, and its revenue increased by more than 40% year-on-year in 2021; ③ Through the contact network layout (the construction of three winged bird stores), the construction of digital platform and operation system, the terminal's customer acquisition capacity and transformation efficiency have been improved. (2) In 2021, the revenue was 113725 billion yuan, a year-on-year increase of 13.0%, and the operating profit was 5.926 billion yuan, a year-on-year increase of 48.1%; The operating profit margin reached 5.2%, with a year-on-year increase of 1.2 percentage points. The company's overseas business performance is good, mainly due to: ① accelerating high-end brand creation (seven brands) in various markets, and the proportion of high-end product revenue continues to increase; ② Grasp the trend of online channels and digital marketing, continuously improve the proportion of online sales and shape differentiated competitive advantages; ③ Adhere to the construction of localized operation system, improve the layout of global supply chain and improve manufacturing efficiency, accelerate the expansion of advantages and explore new growth opportunities; ④ Through joint negotiation, layout optimization, strategic procurement and other project coordination, the company reduces the impact of shortage of parts such as shipping and chips.
The company announced a new round of repurchase plan to demonstrate confidence in future development. The company plans to use its own funds of no more than 3 billion yuan to repurchase the company's A-share shares within 12 months. The repurchased shares will be used to implement the company's employee stock ownership plan or equity incentive, so as to further improve the corporate governance structure, build a long-term incentive and restraint mechanism for the shareholding of the management team, ensure the realization of the company's long-term business objectives, promote the consistency and benefit sharing of all shareholders, and enhance the overall value of the company.
Investment suggestion: the company is one of the leading white power companies in China, with perfect overseas channels, good sales growth at home and abroad, and large imagination space for profit improvement. It is estimated that the company's EPS in 2022 / 2023 will be 1.62 yuan / 1.88 yuan respectively, and the corresponding PE will be 14 / 12 times respectively, maintaining the "recommended" rating.
Risk tip: the risk that the slowdown of macroeconomic growth will lead to the decline of market demand; The risk of price war caused by the intensification of industry competition; Price fluctuation risk of raw materials; Overseas business operation risk; Exchange rate fluctuation risk; Risk of policy change; Epidemic risk, etc.
