\u3000\u3 China Vanke Co.Ltd(000002) 032 Zhejiang Supor Co.Ltd(002032) )
Event: Zhejiang Supor Co.Ltd(002032) published the annual report of 2021. The company achieved revenue of 21.59 billion yuan in 2021, yoy + 16.1%; Achieved a performance of 1.94 billion yuan, yoy + 5.3%. After conversion, Q4 achieved a revenue of 5.92 billion yuan in a single quarter, yoy + 11.9%; Achieved performance of 700 million yuan, yoy-8.2%. We believe that the results of the company's online channel transformation and product sales structure optimization are gradually released, and Q4 revenue is growing steadily; The pressure of raw material cost appears, and Q4 profitability is under pressure in the short term.
Accelerated changes in domestic sales channels and optimization of online product structure: Q4 China's kitchen small household appliance industry has a low prosperity, but we judge that Zhejiang Supor Co.Ltd(002032) domestic sales revenue has increased steadily, mainly because its online channel transformation strategy has gradually achieved results. Tiktok promotes the "one chip" of the electricity supplier and the flagship store direct transformation, and strengthens the construction of new channels such as jitter and Kwai, and the online channel operation capability continues to improve. In addition, the company increased investment in long tail products, and gradually increased the amount of air fryer, health pot, multi-functional pot and other products. The company announced that Gmv on the double ten line will increase by 16% in 2021. According to the data of business consultant, the sales volume of Q4 Zhejiang Supor Co.Ltd(002032) kitchen small household appliances Amoy platform is yoy + 6.3%, which is significantly better than the growth rate of the industry (- 1.7%). Looking forward to the follow-up, the company continues to expand online channels, superimpose the recovery of offline channels, and the company's domestic sales revenue is expected to achieve rapid growth.
Export sales continue to benefit from SEB order transfer: the demand for small household appliances in European and American markets is still high, and SEB group's global orders continue to be transferred to Zhejiang Supor Co.Ltd(002032) . H2 in the context of tight maritime transport capacity, Zhejiang Supor Co.Ltd(002032) export sales still increased by 5.6%. SEB's annual report shows that SEB's Q4 revenue in North America and Western Europe is yoy + 15.7% / + 5.9%. Overseas demand is strong. The company expects the related party transaction amount of goods sold to SEB to be 7.55 billion yuan in 2022, an increase of 1.6% over the actual amount of the previous year. According to the announcement data, the export volume of Zhejiang Supor Co.Ltd(002032) related party transactions in 2022q1 increased by about 10%. The company's export revenue is expected to maintain stable growth.
Q4 cost pressure continues and profitability is under pressure: Q4 Zhejiang Supor Co.Ltd(002032) gross sales difference is -4.3pct year-on-year, and net interest rate is -2.6pct year-on-year. The company's profitability has declined, mainly because the prices of bulk raw materials such as aluminum, stainless steel and copper are at a high level, and the company has great cost pressure. It is worth mentioning that the company promoted the direct operation of DTC's official flagship store, optimized the product structure and effectively responded to the cost pressure of raw materials. In 2021, the gross profit margin decreased by only 0.4 PCT year-on-year. Subsequently, with Zhejiang Supor Co.Ltd(002032) completing the re pricing of related party transactions with SEB, and the effect of direct marketing transformation and product structure optimization of flagship store continues to be reflected, the profitability of the company is expected to be repaired.
Q4 net operating cash flow in a single quarter increased slightly year-on-year: Zhejiang Supor Co.Ltd(002032) Q4 net operating cash flow inflow 14.5% 800 million yuan, yoy + 1.3%, the company's operating cash flow is relatively stable. At the end of 2021, the balance of accounts payable and contract liabilities of the company was yoy + 15.9% / + 5.0%, indicating that the bargaining power of the company in the upstream and downstream of the industrial chain was enhanced.
Investment suggestion: Zhejiang Supor Co.Ltd(002032) is the dominant brand of small kitchen appliances in China, and the brand influence remains in the lead. In the long run, the company's product structure and sales channels continue to be optimized, and continue to benefit from the global order transfer of the parent company SEB group, and its revenue and performance are expected to maintain rapid growth. It is estimated that the company's EPS from 2022 to 2024 will be 2.78/3.19/3.72 yuan respectively, maintaining the investment rating of buy-a. the six-month target price is 61.07 yuan, equivalent to 22 times the dynamic P / E ratio in 2022.
Risk tip: the price of raw materials has risen sharply, the RMB has appreciated sharply, and the competition pattern has deteriorated
