\u3000\u3 China Vanke Co.Ltd(000002) 372 Zhejiang Weixing New Building Materials Co.Ltd(002372) )
Q4's revenue grew faster than expected, and the leader's anti risk ability was prominent
The company released its annual report for 2021 on the evening of March 30. In 21 years, the company achieved operating revenue of 6.388 billion yuan, a year-on-year increase of + 25.13%, and net profit attributable to parent company of 1.223 billion yuan, a year-on-year increase of + 2.58%. Q4 achieved revenue / net profit attributable to parent company of 2.361450 billion yuan in a single quarter, a year-on-year increase of + 25.32% / - 1.74%. Q4 still achieved high growth against the trend in the case of poor industry demand and high base, exceeding our and market expectations, The growth rate of net profit attributable to the parent company in Q4 is mainly due to the decline of Dongpeng's investment income and equity incentive expenses. If two factors are excluded, the profitability of the company remains high, and the leading value and anti risk ability are prominent. We expect the net profit attributable to the parent company in 22-24 years to be RMB 1.50/18.1/2.19 billion respectively, maintaining the "buy" rating.
The core business grew steadily, and the new business expansion achieved remarkable results
In the past 21 years, the company's three traditional main businesses of 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% respectively, with a year-on-year increase of + 0.95pct / - 4.92pct / + 1.53pct. The retail business achieved rapid development against the trend, and the sales in the western, central and South China markets increased by more than 30% year-on-year. In the past 21 years, the company continued to promote new business development such as waterproof and water purification. Other products achieved an income of 410 million yuan, a year-on-year increase of + 80.8%, accounting for 6.42% of the revenue, a year-on-year increase of + 1.98 PCT, and the effect of new business development was prominent. The gross profit margin of PPR / PE / PVC in 21 years was 55.15% / 31.33% / 11.88% respectively, with a year-on-year increase of -1.15pct / - 4.48pct / - 11.20pct. The sharp decline in the gross profit margin of PVC was mainly due to the sharp rise in the price of raw materials, but due to the fierce market competition, the price increase of product sales failed to keep pace with the rise of raw materials.
The ability of cost control has increased, and the cash cow is worthy of its name
The overall gross profit margin of the company in 21 years was 39.79%, with a year-on-year decrease of 3.71 PCT, and the expense rate of the company in 21 years was 16.81%, with a year-on-year decrease of -1.27 PCT, of which the sales / management / R & D / financial expense rate was -1.29 / + 0.07 / - 0.17 / + 0.11 PCT respectively, and the net profit margin of the company in 21 years was 19.23%, with a year-on-year decrease of 4.19 PCT. in addition to the fluctuation of raw materials, the investment income also had a certain impact on the net profit margin. In 21 years, the company's net operating cash flow inflow was 1.594 billion yuan, with a cash to cash ratio of 113.42%, a year-on-year increase of + 1.28 PCT, with excellent performance.
Optimistic about b-end and C-end dual wheel drive and maintain the "buy" rating
We believe that the impact of fine decoration will gradually weaken in the future, and the company will continue to increase the sinking of channels in peripheral areas. The company's retail business is expected to continue to maintain a rapid growth trend in the past 22 years. In the medium and long term, with the gradual increase of the demand for stock houses, the long-term growth of the company's retail business can be expected; By actively connecting with high-quality customers and projects and adopting differentiated competition strategy, the engineering end company is expected to maintain steady growth. The "concentric circle" strategy further enables the company's long-term growth potential. We expect the company's net profit attributable to the parent company to be RMB 1.50/18.1/2.19 billion in 22-24 years. At present, the comparable company has the same expectation of pe24.5 billion for the corresponding 22-year wind 6 times. Considering that the company has obvious advantages in retail brand + channel + service and smooth new business development, the company is recognized as 28 times PE for 22 years, corresponding to the target price of 26.32 yuan, maintaining the "buy" rating.
Risk tip: the demand growth is lower than expected, the rise of raw material cost is higher than expected, and the expansion of waterproof & water purification business is lower than expected.
