\u3000\u30 China Baoan Group Co.Ltd(000009) 21 Hisense Home Appliances Group Co.Ltd(000921) )
Event: the company released its annual report for 2021, and achieved an annual operating revenue of 67.563 billion yuan, a year-on-year increase of + 39.6%; The net profit attributable to the parent company was 973 million yuan, a year-on-year increase of - 38.4%. If the third consolidated statement is excluded, the company achieved an operating revenue of 62.449 billion yuan, a year-on-year increase of + 29.1%, and a net profit attributable to the parent company of 1.128 billion yuan, a year-on-year increase of - 28.6%.
Comments:
Business performance is under pressure, and overseas income has increased steadily. In terms of business, the revenue of all categories of the company has achieved stable growth, of which the revenue of HVAC and ice washing business has reached 30.403/23.018 billion yuan respectively, with a year-on-year increase of + 30.0% / + 23.0% respectively. In terms of sub regions, in 2021, the company's revenue from China and overseas increased by + 28.8% / + 58.2% to 37.602/23.160 billion yuan respectively year-on-year, of which the proportion of export revenue increased by 4.2pct to 34.3%. According to industry online, in 2021, the company's export volume of air conditioners and refrigerators was + 37.1% / + 7.4% year-on-year respectively. The competitiveness of overseas business was enhanced and the export revenue increased steadily. In the whole year, the growth rate of the company's performance has declined. We believe that first, due to the impact of consolidated statement III, the management expenses have increased sharply; Second, it is subject to the loss of the company's household air conditioning business; Third, the price rise of bulk raw materials puts pressure on the cost side of the company. In the future, with the enhancement of the synergy between the three power companies, the company's global brand strength is expected to be further improved, driving the gradual improvement of profitability.
The high price of raw materials has reduced the company's profit margin. Affected by the high price fluctuation of raw materials and the double pressure of rising sea freight, the company's gross profit margin in 2021 was - 4.4pct to 19.7% year-on-year. In order to pass on the cost pressure, the company actively carried out expense control. During the whole year, the expense rate was - 1.6pct to 16.3% year-on-year, of which the expense rates of sales, management and R & D were - 2.9pct / + 0.7pct / + 0.3pct to 11.4% / 2.0% / 2.9% respectively. The comprehensive impact on the company's annual net profit margin was - 2.4pct to 3.5% year-on-year. The decline of net profit margin was less than that of gross profit margin. The effect of expense control of the company was good.
Make efforts in the field of air conditioning compressor and heat management to reshape the new driving force of enterprise growth. Through the business integration of Sandian, the company has completed the expansion to the automotive air conditioning compressor, automotive air conditioning and other vehicle thermal management system industries, and is expected to continue to benefit in the field of new energy vehicles in the future. In addition, the company will continue to increase sports marketing, or take advantage of the opportunity as the official sponsor of the 2022 Qatar world cup to further enhance the global brand strength.
Investment suggestion: the extension business will gradually make efforts to help the release of performance flexibility and maintain the "overweight" rating. Considering the high volatility of raw material prices and the time required for the company to integrate Sandian holdings, 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 1.54/18.2/1.99 billion yuan respectively (the original forecast value in 2022 / 2023 is 1.63/1.86 billion yuan respectively), corresponding to 10 / 9 / 8 times of the current market value PE respectively, maintaining the "overweight" 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.
