\u3000\u3 China Vanke Co.Ltd(000002) 032 Zhejiang Supor Co.Ltd(002032) )
Key investment points
Event: the company released its annual report for 2021. In 2021, the company achieved a revenue of 21.59 billion yuan, a year-on-year increase of 16.1%; The net profit attributable to the parent company was 1.94 billion yuan, a year-on-year increase of 5.3%; Deduct non net profit of RMB 1.86 billion, with a year-on-year increase of 16.5%. In Q4, the company achieved a revenue of 5.92 billion yuan, a year-on-year increase of 11.9%; The net profit attributable to the parent company was 700 million yuan, a year-on-year decrease of 8.2%.
Channel reform + category expansion, and revenue grew steadily. In terms of domestic sales, the company’s online channel transformation strategy was successfully implemented, the online product sales structure was continuously optimized, and the company’s domestic sales revenue increased steadily. In 2021, the company’s domestic sales revenue reached 14.26 billion yuan, a year-on-year increase of 10.8%. During the “double 11” period in 2021, Zhejiang Supor Co.Ltd(002032) brand achieved a total sales volume of 1.68 billion, a number of single products of various categories ranked first in the sales of their respective categories, and the profits of various categories increased significantly. In terms of export, thanks to the transfer of SEB orders, the company’s export revenue has achieved rapid growth. The annual export revenue was 7.33 billion yuan, a year-on-year increase of 27.9%. In 2022, the company expects the amount of related party transactions with SEB to be 7.55 billion yuan, an increase of 10.1% year-on-year. Accordingly, we expect the company’s export sales to maintain steady growth in 2022.
The expected profit is better. In 2021, the company’s comprehensive gross profit margin was 23%, a year-on-year decrease of 3.4pp. We believe that the sharp rise in the price of raw materials, the fluctuation of RMB exchange rate and the rise of international logistics freight have a negative impact on the performance of the company’s gross profit margin. In terms of expense ratio, the company’s sales expense ratio was 8.8%, a year-on-year decrease of 2.6pp; The management fee rate was 3.9%, a year-on-year decrease of 0.1pp. Overall, the company’s net interest rate was 9%, a year-on-year decrease of 0.9pp. Considering the renegotiation of export orders and the continuous optimization of product structure in domestic sales, it is expected that the cost pressure of the company will be relieved and the profit performance will gradually improve.
Channel transformation and efficiency upgrading. The company accelerated the channel reform and further improved the marketing efficiency. In terms of online channels, the company continued and increased the construction of “one inventory” mode of e-commerce, realized the unified warehouse distribution of self operated and dealer goods, improved the channel capital turnover efficiency and effectively alleviated the capital pressure of dealers. The company continued to implement the strategy of e-commerce promoting new and expensive products, increased the sales proportion of high gross profit products, promoted the customer unit price of products, and successfully improved the profitability of online channels. In terms of offline channels, the company strengthened the refined operation of stores and promoted the improvement of store floor efficiency. At the same time, the company continued to promote the development strategy of three or four markets, accelerated the comprehensive cooperation with e-commerce platforms such as jd.com, tmall.com and Suning in the sinking market o2o channels, and sought new revenue growth points.
Profit forecast and investment suggestions. It is estimated that the EPS from 2022 to 2024 will be 2.91/3.27/3.67 yuan respectively. Considering that the company, as a leading enterprise of small household appliances, has perfect channel layout and rich product matrix. With the improvement of domestic demand and the repair of export profits, the company is expected to operate steadily and maintain the “hold” rating.
Risk warning: the risk of raw material price or sharp fluctuation, and the risk that the market demand is less than expected.
