\u3000\u3 China Vanke Co.Ltd(000002) 372 Zhejiang Weixing New Building Materials Co.Ltd(002372) )
The performance grew steadily, and the growth rate of Q4 revenue exceeded expectations. In 2021, the company realized an operating revenue of 6.39 billion yuan, a year-on-year increase of 25.1%, a net profit attributable to the parent company of 1.22 billion yuan, a year-on-year increase of 2.6%, deducting the net profit not attributable to the parent company of 1.19 billion yuan, a year-on-year increase of 3.3%, EPS of 0.77 yuan / share, and plans to pay 6 yuan per share (tax included). The profit growth rate is lower than the income growth rate, mainly due to the impact of the rise in the price of raw materials, as well as the joint efforts of investment fund Dongpeng, which led to a decrease in investment income of 94.72 million yuan and an increase in, Excluding the impact of investment income and equity incentive expenses, the net profit attributable to the parent company was + 16.9% year-on-year, maintaining a steady growth on the whole. In Q4 alone, the revenue reached 2.36 billion yuan, a year-on-year increase of + 25.3%, a month on month increase of + 44%, and the net profit attributable to the parent company was 450 million yuan, a year-on-year increase of - 1.7%, a month on month increase of + 25.4%. Under the background of obvious slowdown in downstream demand, the growth rate of revenue exceeded expectations, which mainly benefited from the company's increased market expansion and new business expansion, as well as the better implementation of price increase.
The retail business grew rapidly against the trend, and the expansion of waterproof and water purification was accelerated. In 2021, the annual sales volume of pipes reached 298000 tons, with a year-on-year increase of + 12.3%, of which PPR / PE / PVC achieved revenue of 3.09/17.2/1.02 billion yuan respectively, with a year-on-year increase of + 27.6% / + 5.8% / + 38.4%, accounting for 48.3% / 26.9% / 15.9%, and the gross profit margin was 55.2% / 31.3% / 11.9% respectively, with a year-on-year increase of - 1.2pct / - 4.5pct / - 11.2pct, of which: 1) the rapid growth of PPR revenue was mainly due to the sinking and penetration of channels, comprehensively improving the market share; 2) The rapid growth of PVC revenue was mainly due to the increased promotion and the sharp rise in the price of raw materials, which pushed up the price. However, due to the fierce competition in the engineering market, the price increase failed to keep pace with the increase of raw materials, resulting in a significant decline in the gross profit margin. At the same time, the expansion of new categories has achieved remarkable results, with a revenue of 410 million yuan, a year-on-year increase of + 80.1%, accounting for 6.4% of the revenue, a year-on-year increase of + 1.98pct. Concentric products such as waterproof and water purification have increased rapidly, and the matching rate of products has increased.
Excellent cash flow performance and steady improvement of business quality. In 2021, the company realized a net cash flow of 1.59 billion yuan from operating activities, a year-on-year increase of + 18.4%, which mainly benefited from the good control of accounts receivable. The engineering business side company always adhered to the principle of "risk control first", actively cultivated high-quality customers and high-quality projects, and achieved healthy development; During the reporting period, the turnover rates of accounts receivable and Inventory were 19.8 and 4.2 respectively, compared with 18.4 and 3.9 in the same period of last year, and the operation quality improved steadily.
Risk warning: the completion of the real estate is not as expected; The price of raw materials has risen sharply; New business expansion is less than expected
Investment suggestion: with deep cultivation and reform, the leading competitive advantage of home decoration pipeline continues to be consolidated. As the leading enterprise of home decoration pipeline, the "buy" company has obvious advantages in brand, channel and technical service. The "two wheel drive" of retail Engineering is advancing steadily, and the competitiveness of the main business of pipeline continues to be expanded. At the same time, new businesses such as waterproof and water purification are expanding rapidly under the concentric circle strategy. In January 2022, it acquired 100% equity of fastflow limited, It is expected to further improve the water supply and drainage product chain, accelerate the international layout and consolidate the competitive advantage. It is estimated that the EPS of 22-24 years will be 0.95/1.10/1.27 yuan / share respectively, and the corresponding PE will be 21.5/18.6/16.1x, maintaining the "buy" rating.
