\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 690 Haier Smart Home Co.Ltd(600690) )
Key investment points
Event: the company released its annual report for 2021. In 2021, the company achieved a revenue of 227.56 billion yuan, a year-on-year increase of 8.5%; The net profit attributable to the parent company was 13.07 billion yuan, a year-on-year increase of 47.1%. After excluding the impact of privatization of Haier appliances and disposal of CAOS, the revenue under the same caliber increased by 15.8% and the net profit attributable to the parent company increased by 37% year-on-year; Deduct non net profit of RMB 11.83 billion, with a year-on-year increase of 83.2%. In a single quarter, Q4 company achieved a revenue of 57.59 billion yuan, a year-on-year increase of 4.1%; The net profit attributable to the parent company was 3.13 billion yuan, a year-on-year increase of 21.3%; The net profit attributable to the parent company after deducting non profits was 2.78 billion, with a year-on-year increase of 17.3%. The company plans to pay dividends of 4.6 yuan for every 10 shares, totaling 4.32 billion yuan, with a dividend rate of 33.1%; In addition, the company plans to repurchase 1.5-3 billion yuan of company shares at a price of no more than 35 yuan / share.
China has a rich product matrix and its market share continues to increase. In terms of Chinese business, during the reporting period, the company further expanded its competitive advantage in the Chinese market, continuously increased the share of various industries, and promoted the income of Chinese family intelligence business to 120.79 billion yuan, a year-on-year increase of 22.2%; The operating profit was 74.6%, with a year-on-year increase of 24.5%. The overall share of the company’s home appliance business in the Chinese market reached 25.1%, up 2.3pp year-on-year. According to zhongyikang data, the offline market share of the company’s refrigerators, washing machines and water heaters reached 41.3% / 43.1% / 28.1%, up 2.1/2.9/3.5pp year-on-year respectively; The proportion of online listing reached 37.8% / 40.4% / 30.7%, with a year-on-year increase of 2.7/0.5/3.4pp respectively, achieving Wuxi Online Offline Communication Information Technology Co.Ltd(300959) double first.
Casati maintained high growth, and new categories opened new channels for growth. Casati, the company’s high-end brand, has established more than 1000 three winged bird stores to drive hardware sales through the scene, help Casati’s product unit price rise to 2.4 times of the industry, and the high-end market share exceeds 40%, promoting Casati’s revenue of 12.9 billion yuan during the reporting period, with a year-on-year increase of more than 40%. During the reporting period, the company’s new categories opened a new channel for growth. The revenue of clothes dryers and dishwashers increased by 203% / 90% year-on-year respectively. The floor washing machine has become a popular product of double 11. It is expected that the new categories may continue to maintain high-speed growth.
Overseas developed high-end markets, controlled costs and reduced fees, and steadily increased profits. In terms of overseas business, during the reporting period, the company’s overseas business realized a revenue of 113.73 billion yuan, a year-on-year increase of 13%; The operating profit was 5.93 billion yuan, a year-on-year increase of 48.1%; The operating profit margin reached 5.2%, with a year-on-year increase of 1.2pp. The main reasons for the rapid growth of overseas business and the improvement of profit margin are: (1) accelerating high-end brand creation in various markets, and the proportion of high-end product revenue continued to increase. During the reporting period, the proportion of high-end market in North America and Europe increased by 2.6/5pp year-on-year respectively; (2) The proportion of online sales continued to increase; (3) Adhere to the construction of localized operation system and improve manufacturing efficiency by controlling cost and reducing cost.
Profitability increased steadily. In the context of rising raw material and shipping prices, the company hedged the adverse effects by optimizing the product structure, increasing the proportion of high-end products and digital reform, and the gross profit margin increased instead of decreasing. During the reporting period, the company’s comprehensive gross profit margin was 31.2%, with a year-on-year increase of 1.6pp. In terms of expense ratio, affected by the continuous promotion of digital transformation in the Chinese market and the improvement of overseas operation efficiency, the company’s sales expense ratio and management expense ratio are 16.1% / 4.6% respectively. After excluding the influence of CAOS, the same caliber decreased by 1.1/0.5pp year-on-year respectively; The financial expense ratio was 0.3%, a year-on-year decrease of 0.3pp. Overall, the company’s net interest rate was 5.8%, up 0.4pp year-on-year. According to the data of a single quarter, the gross profit margin of Q4 was 34.3%, unchanged year-on-year; Affected by credit impairment losses and exchange, the net interest rate of Q4 was 5.5%, a year-on-year decrease of 0.5pp.
Profit forecast and investment suggestions. It is estimated that the EPS from 2022 to 2024 will be 1.64/1.88/2.12 yuan respectively. Considering that the company, as a white power leader, has a smooth high-end construction, and its overseas expansion has entered the harvest period, it will maintain the “buy” rating.
Risk tip: the price of raw materials may fluctuate sharply, the expansion of new products is less than expected, and the overseas expansion is less than expected.
