\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 690 Haier Smart Home Co.Ltd(600690) )
Event: in 2021, Haier Smart Home Co.Ltd(600690) achieved an operating revenue of 227556 billion yuan, a year-on-year increase of + 8.50%, and a net profit attributable to the parent company of 13.067 billion yuan, a year-on-year increase of + 47.10%. Excluding the impact of stripping CAOS, the company’s revenue in 2021 was + 15.8% year-on-year; Excluding the impact of stripping CAOS and privatization of Haier appliances, the net profit attributable to the parent company was + 37% year-on-year. Q4 company achieved an operating revenue of 57.593 billion yuan, a year-on-year increase of + 4.12%, and a net profit attributable to the parent company of 3.132 billion yuan, a year-on-year increase of + 21.29%.
Comments:
How to view the overseas income surpassing China first?
In 2021, Haier Smart Home Co.Ltd(600690) overseas and other regions (businesses) exceeded the operating revenue of the mainland for the first time, and the operating revenue of the mainland accounted for 49.2% of the company’s operating revenue. Overseas smart home business achieved an operating revenue of 113725 billion yuan, a year-on-year increase of + 13.0%, an operating profit of 5.926 billion yuan, a year-on-year increase of + 48.1%, and a new record in revenue and profitability. Haier has been in overseas layout for many years. Local licensing and local factory investment mode is conducive to brand integration into the local consumer market. With the help of Haier’s global technology, operation and supply chain platform, it can effectively evade the impact of unfavorable factors such as trade barriers. In 2021, under the multiple adverse effects of high cost of raw materials, high freight rates and large fluctuations in exchange rate, Haier’s overseas layout advantages were highlighted. We believe that the overseas market will become the most important source of the company’s growth in the future.
How to view the change of the company’s profitability?
By increasing the proportion of high-end + optimizing the product structure + optimizing the efficiency of the supply chain, the company successfully digested the cost pressure of raw materials and parts, and further increased the gross profit margin to 31.23% in 2021, with a year-on-year increase of + 1.55pct.
In terms of expense ratio, Q4 sales / management / R & D / financial expense ratio was -0.43 / – 0.36 / + 0.39 / + 0.58pct year-on-year respectively. Although the company strictly controlled the sales and management expenses, it still increased the investment in R & D expenses. The R & D expenses of Q4 company reached 2.153 billion yuan, with a year-on-year increase of + 16%. With the increase of gross profit and proper cost control, the company achieved a net interest rate of 5.81%, with a year-on-year increase of + 0.41pct, and the net interest rate of Q4 decreased slightly to 5.47%, with a year-on-year decrease of -0.5pct. We believe that the digital transformation effect of the company is remarkable, and the operation capacity and cost investment efficiency of organizations outside China are expected to be further improved.
How to view the sustainability of Haier’s development?
1) global share enhancement: Haier’s R & D, supply chain capabilities + local brand licensing appeal promotes Haier’s overseas market share. In Japan, the Middle East and Africa, Eastern Europe, Latin America and other regions, Haier still has a 5~20 point gap compared with the first brand in the city, and the market can increase greatly.
2) systematization drives user value: the three-level strategy of high-end brand, scene brand and ecological brand, Casati fully integrates with the three winged bird, caters to the characteristics of prepositional, scene and complete sets of Chinese household appliance consumption, improves customer order value and leads the development direction of Chinese household appliance market in the future.
3) develop strengths and make up weaknesses to create new categories: the company arranges new categories such as clothes dryers, cleaning appliances and new kitchen appliances to bring sustainable growth driving force to the company.
4) establish a recycling plant for recycling, dismantling and recycling household appliances and promote the demand for renewal based on the concept of sustainability: the first interconnected plant in the green recycling industry built by Haier will be put into operation in 22 years. After being put into operation, 2 million old household appliances can be disassembled every year, which will boost the renewal consumption of household appliances while realizing the “carbon neutral” green plant.
Profit forecast and investment rating: we expect the company’s revenue in 22-24 years to be 251387/280488/309740 billion yuan, a year-on-year increase of + 10.5 / + 11.6 / + 10.4%; The net profit attributable to the parent company was 15.233/17.501/21.38 billion yuan, a year-on-year increase of + 16.6 / + 14.9 / + 22.2%, corresponding to 13.9 / 12.1 / 9.9 times of PE, maintaining the “buy” rating.
Risk factors: the cost of raw materials has risen sharply, the development of overseas markets is less than expected, the demand of high-end markets is less than expected, the education and promotion of packaged / scenario products is less than expected, the exchange rate fluctuates greatly, and the overseas epidemic repeatedly leads to insufficient export demand
