\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 690 Haier Smart Home Co.Ltd(600690) )
Core view
Event: the company released its annual report for 2021, and achieved an annual operating revenue of 227556 billion yuan, a year-on-year increase of + 8.50%; The net profit attributable to the parent company was 13.067 billion yuan, a year-on-year increase of 47.10%, and the net profit attributable to the parent company after deduction was 11.831 billion yuan, a year-on-year increase of 83.21%.
Comments:
The business performance exceeded expectations, and the overseas layout ushered in the harvest period. Excluding the influence of CAOS business, the company’s revenue in 2021 was + 15.8% year-on-year, up from + 23.4% in 2019. On the one hand, the reason for the high increase in revenue came from the steady growth of the main business of traditional ice washing, on the other hand, “Casati + three winged bird” achieved a breakthrough in the sales of high-end and complete sets of products. By category, the company’s revenue of refrigerators / washing machines / air conditioners / kitchen appliances / water appliances in the whole year was 71.57/547.6/375.3/352.4/12.47 billion yuan respectively, with a year-on-year increase of + 16.30% / + 13.02% / + 25.11% / + 12.38% / + 26.52%, of which the business of air conditioners and water appliances achieved rapid growth. In terms of sub regions, in the company’s main business in 2021, the revenue from China and overseas increased by + 4.30% / + 13.20% to 111.85/114.73 billion yuan respectively year-on-year, of which the proportion of export increased by 2.09pct to 50.42%. In overseas markets, the annual revenue growth of North America / Europe / ANZ / South Asia / Southeast Asia / Japan markets was + 10.3% / + 19.5% / + 17.3% / + 30.5% / + 15.0% / – 3.4% respectively. The synergy of the company’s global business appeared, driving the rapid development of overseas markets.
Expenses were continuously optimized and profitability was steadily improved. In the face of multiple pressures from the sharp rise in the price of bulk raw materials, the cost of parts and components and sea freight, the company’s annual gross profit margin remained + 1.55pct to 31.23% year-on-year. The increase in gross profit margin was due to the company’s increase in the proportion of high-end products and the disposal of low gross profit businesses. On the other hand, the company also digested the cost pressure by improving the operation efficiency through the digital transformation of the supply chain. Excluding the influence of CAOS, the company’s sales and management expense rates in 2021 are – 1.1pct / – 0.5pct to 16.06% / 4.59% respectively. Under the comprehensive influence, the company’s net profit margin is + 1.51pct to 5.74%, and the profitability is steadily improved.
The revenue of high-end Casati exceeded 10 billion, and the three winged bird improved the competitiveness of the scene scheme. In 2021, Casati’s Chinese market achieved a revenue of 12.9 billion yuan, about + 40% year-on-year, breaking the 10 billion mark for the first time. At the same time, the three winged bird continued to strengthen the construction of contacts. By the end of the year, 1317 scene stores had been built, covering more than 1100 building materials markets in China, driving the sales of high-end and intelligent complete sets by + 62% / + 15% year-on-year.
It is recommended to maintain the “high-end investment and lead the enterprise” rating in the future. The company accelerated the transformation of smart home of Internet of things, focused on high-end brands and continuously improved its product power. We fine tuned the company’s profit forecast for 2022 / 2023. It is estimated that the net profit attributable to the parent company in 20222024 will be 15.675/17.696/19.914 billion yuan respectively (the original forecast value in 2022 / 2023 is 15.08/16.94 billion yuan respectively), corresponding to 14 / 12 / 11 times of the current market value PE respectively, maintaining the “buy” rating.
Risk tip: the channel reform is not as expected, the epidemic situation in China is repeated, and the price of raw materials is rising.
