\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 690 Haier Smart Home Co.Ltd(600690) )
Event: the company achieved revenue of 227.56 billion yuan in 2021, yoy + 8.5% (the same caliber after excluding the influence of CAOS, yoy + 15.8%); Net profit of 13.22 billion yuan, yoy + 16.7%; The net profit attributable to the parent company is 13.07 billion yuan, yoy + 47.2% (excluding the impact of CAOS and privatization of Haier appliances, the same caliber is yoy + 37.0%). Converted into 2021q4, the revenue in a single quarter was 57.59 billion yuan, yoy + 4.1%; The net profit was 3.15 billion yuan, yoy-4.6%; The net profit attributable to the parent company was 3.13 billion yuan, yoy + 21.6% (excluding the impact of privatization of Haier electric appliances, we calculated that the same caliber yoy-6.1%; if the year-on-year increase of credit impairment loss is added back, the year-on-year growth rate is about 3%). In 2021q4, Haier’s foreign revenue maintained stable growth. Under the adverse environment of high raw material prices and RMB appreciation, the company’s gross profit margin remained stable, and the rate of sales and management expenses continued to be optimized, showing strong pressure resistance. We believe that driven by high-end and globalization, the logic of Haier’s long-term sustained growth in revenue and performance is clear, and its operating efficiency is expected to be continuously optimized.
Haier China’s revenue maintained a steady growth trend in the single quarter of Q4: Haier’s revenue from China’s smart family and other businesses in the single quarter of Q4 was yoy + 6%. In 2021h2, the business of China’s household appliances continued to grow, and the revenue of China’s refrigerators / washing machines / air conditioners / kitchen appliances / water appliances yoy + 15.1% / + 11.0% / + 11.5% / + 1.2% / + 22.9%. Affected by the statement of CAOS, the revenue of other business segments of Haier in 2021h2 is yoy-77.8%, which is a drag on the growth rate of China.
Under the influence of RMB appreciation, Haier’s overseas revenue continued to grow in Q4 single quarter: Haier’s overseas revenue in Q4 single quarter was yoy + 2%. After excluding the influence of RMB appreciation, the growth rate of overseas revenue was about 9%. By region, in 2021h2, Haier’s revenue in North America / Europe / Japan / South Asia / Southeast Asia / ANZ / Middle East Africa is yoy + 2.2% / + 8.9% / – 5.6% / + 16.3% / + 5.7% / + 2.0% / + 18.6%. Haier’s overseas market share has continued to improve and its growth rate is ahead of its peers. In comparison, 2021q4 Whirlpool (China) Co.Ltd(600983) revenue yoy + 0.3%, Electrolux revenue yoy + 4.3%.
China’s high-end brand yoxay + achieved a growth of 12.9 billion yuan in 2021. We estimate that Casati’s revenue growth rate in Q4 is about 25% ~ 30%, maintaining a rapid growth trend. In the US market, the company’s high terminal brand Monogram / caf é / GE Profile grew by more than 40% in 2021. The proportion of high-end brands of the company continues to increase, which is expected to drive the continuous optimization of gross profit margin.
Haier’s cost compression ability is strong, and its gross profit margin in 2021q4 is flat year-on-year: Haier’s gross profit margin in 2021q4 is 34.3% in a single quarter, basically flat year-on-year. The price of Q4 raw materials remains high. The company has better hedged the pressure of raw material price rise through product structure optimization, price increase and supply chain efficiency improvement.
Affected by exchange and impairment, the profitability of Q4 declined year-on-year: Haier’s net interest rate in Q4 was 5.5%, year-on-year -0.5pct. The company’s profitability decreased year-on-year. Specifically, 1) Q4 RMB appreciated more, and the company’s financial expense rate was + 0.6pct year-on-year; 2) The company continued to increase R & D investment, and the R & D expense rate in Q4 was + 0.4pct year-on-year; 3) Based on the principle of prudence, Haier Q4 accrued credit impairment loss of 380 million yuan in a single quarter, an increase of 330 million yuan year-on-year. It is worth noting that the company’s sales expense rate and management expense rate continue to be optimized. In Q4, the sales expense rate is -0.4pct year-on-year and the management expense rate is -0.4pct year-on-year. The company’s operating efficiency continues to improve.
The company increased its efforts to prepare goods, and the cash flow from operating activities in Q4 decreased year-on-year: the net cash flow from Haier’s operating activities in Q4 was 9.77 billion yuan, a year-on-year decrease of – 2.12 billion yuan. We believe that the inventory of Q4 company was + 10.42 billion yuan year-on-year mainly because Haier increased its stock preparation. In addition, the company’s Q4 advance receipts were + 2.97 billion yuan year-on-year, reflecting that the downstream demand is still relatively strong.
Investment suggestion: Haier is the leader in the global development of Chinese household electrical appliance enterprises. It has a perfect brand, channel and supply chain layout overseas, and there is a large room for overseas profit margin improvement. In addition, the company deepened digital transformation and helped China’s home appliance business increase revenue and reduce expenditure through high-end, systematic and scene sales models. It is estimated that the company’s EPS from 2022 to 23 will be 1.59/1.83 yuan respectively.
Risk tip: RMB appreciation; The intensification of industry competition leads to the improvement of profit margin less than expected
