\u3000\u3 China Vanke Co.Ltd(000002) 242 Joyoung Co.Ltd(002242) )
Key investment points
Event: the company released its annual report for 2021. In 2021, the company realized an operating revenue of 10.54 billion yuan, a year-on-year decrease of 6.1%; The net profit attributable to the parent company was 750 million yuan, a year-on-year decrease of 20.7%; The net profit attributable to the parent company after deducting non-profit was 600 million yuan, a year-on-year decrease of 12.3%. In a single quarter, Q4 company achieved a revenue of 3.51 billion yuan, a year-on-year decrease of 15.3%; The net profit attributable to the parent company was 80 million yuan, a year-on-year decrease of 72.2%.
Export sales continued to increase. In terms of products, the company’s nutritional cookers and cookers grew well. In 2021, the company achieved revenue of 3.83 billion yuan and 750 million yuan respectively, with a year-on-year increase of 11.9% and 68.7%. While the revenue performance of food processing series and Western electrical appliances series declined against the background of weak consumption of small household appliances. In 2021, the revenue was 4.35 billion yuan and 1.33 billion yuan respectively, a year-on-year decrease of 17.9% and 13.5%. In terms of regions, the synergy between the company and sharkninja was further strengthened, with overseas sales revenue of 1.46 billion yuan, a year-on-year increase of 56.1%; Domestic revenue was 9.08 billion yuan, a year-on-year decrease of 11.7%.
Short term earnings are under pressure. Throughout the year, the company’s comprehensive gross profit margin was 27.8%, a year-on-year decrease of 4.3pp; After adjustment, the gross profit margin was 30.5%, a year-on-year decrease of 1.6pp. We speculate that it is mainly due to the rise in raw material prices. In terms of expense rate, the company’s sales expense rate was 15%, a year-on-year decrease of 1.6pp; The management expense ratio was 6.7%, with a year-on-year increase of 0.1pp; The financial expense ratio was – 0.2%, a year-on-year decrease of 0.2pp. Overall, the company’s net interest rate was 6.7%, a year-on-year decrease of 1.5pp. In the future, with the stabilization of raw material prices and the optimization of the company’s product structure, the company’s profit performance is expected to recover.
Leading in R & D and increasing the main category share. During the reporting period, the company continued to increase R & D investment, and the annual R & D expense rate was 3.4%, with a year-on-year increase of 0.3pp. The company continued to focus on the core mainstream categories, focusing on the introduction of Hongmeng Zhilian hand washing wall breaking machine y521, visual steam air fryer SF series, intelligent carbon steel kettle electric rice cooker f921, damowang wear-resistant non stick frying pan, etc; Shark brand also launched the floor washer ED200, steam electric mop T21, suction and drag integrated floor washer V5, etc. The R & D investment of the company continues to increase, and the main product technology is leading. Throughout the year, advantageous categories such as soybean milk machine, wall breaker, air fryer, noodle machine and juicer firmly occupy the first position in the market, and most other categories also rank among the top three in the industry.
Profit forecast and investment suggestions. The company continues to explore new retail business models and accelerate the development of Wuxi Online Offline Communication Information Technology Co.Ltd(300959) integration. With the recovery of China’s consumer demand and the launch of the company’s innovative products, the company’s performance is expected to grow rapidly. It is estimated that the company’s EPS from 2022 to 2024 will be 1.07 yuan, 1.22 yuan and 1.38 yuan respectively. The compound growth rate of performance in the next three years will be 12.4%, and the rating will be lowered to “hold”.
Risk warning: the price of raw materials may fluctuate sharply, the market competition intensifies, and the sales of small household appliances are less than expected
