\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 690 Haier Smart Home Co.Ltd(600690) )
Event:
The company released its 2021 annual report: the revenue in 2021 was 227.6 billion yuan (YoY + 9%). If excluding the impact of the stripping of CAOS and ririshun logistics business, the company's revenue in 2021 increased by 16% and 23% respectively compared with 2020 and 2019. In 2021, the company achieved a net profit of 13.2 billion yuan, an increase of 17% and 7% over 2020 and 2019; In 21 years, the net profit attributable to the parent company was 13.1 billion yuan, a year-on-year increase of 47%. Haier's profit distribution plan for 2021 is to pay out 4.6 yuan (including tax) for every 10 shares, and the cash dividend ratio is 33%; At the same time, the company launched a repurchase plan, which plans to repurchase 1.5-3 billion A-Shares at no more than 35 yuan / share, and no more than 85.71 million shares (accounting for 0.91% of the current total share capital). The repurchased shares are used for employee stock ownership plan or equity incentive, so as to further improve the corporate governance structure and build a long-term incentive and restraint mechanism for the shareholding of the management team.
Comments:
The retail share of all industries increased across the board, and Casati's brand revenue increased by + 40% year-on-year. In terms of regions, China's revenue in 2021 was 120.8 billion yuan (+ 22%), and the business growth was mainly due to the innovation of complete sets of products + the guidance of high-end brands. The retail share of various industries increased across the board: the revenue of refrigerators was 41.7 billion yuan (+ 21%), and the share of offline retail sales increased by 2.1 percentage points to 41.3%; China's washing machine division achieved a revenue of 30.7 billion yuan (+ 18%), and the share of offline retail sales reached 43.1% (+ 2.9 PCTs); The air conditioning business adheres to the efficient retail mode and medium and high-end route, realizing a revenue of 32.2 billion yuan (+ 26%), and the proportion of offline / online retail sales is 16.8% / 13.6% respectively, with a year-on-year increase of 2.5/2.4 percentage points. Overseas, the company achieved revenue of 113.7 billion yuan (+ 13%) in 21 years, including 70.3/197/7 billion yuan in the United States / Europe / ANZ market, with a year-on-year RMB caliber of + 10% / + 20% / + 17%, which is far better than that of the local industry. In terms of brands, Casati's net income reached 12.9 billion yuan in 2021, with a year-on-year increase of more than 40%, and it maintained a leading edge in the high-end market; North American high-end brands monogram, CAF é and geprofile increased their revenue by more than 40%. The three winged bird scene brand has improved the single user value by creating a smart home solution integrating home appliances and home decoration, and has built a total of 1317 scene stores, covering more than 1100 building materials markets in China.
Under the same caliber, the gross profit margin rose against the trend and the operating net cash increased rapidly. In the whole year, the company's gross profit margin was 31.2% (+ 1.6pcts), of which the gross profit margin of 21q4 was flat year-on-year. The increase of gross profit margin was mainly due to the increase of high-end proportion, optimization of product structure, digitization of supply chain and disposal of low gross profit businesses. Under the same caliber, the annual sales expense rate and management expense rate are optimized by 1.1pcts and 0.5pcts respectively compared with those in 2020. The decrease of expense rate is mainly due to the optimization of organization operation efficiency and expense delivery efficiency + the rapid growth of overseas market scale. In 2021, the company's net operating cash was 17.6 billion yuan (+ 18%), with a significant year-on-year increase, mainly due to the rapid growth of net profit and the improvement of operating efficiency, "four reconstruction" and digital operation. In 2021, the company's net business cycle was 13.4 days, an increase of 5.4 days year-on-year, with its own cash of 38.4 billion yuan and sufficient operating safety cushion. In the long run, Haier's internal digital transformation improves operational efficiency and external user experience through scenario schemes. While adhering to high-end brand creation + localized operation overseas, Haier gradually optimizes the overall operational efficiency through scale effect improvement + refined operation.
Profit forecast, valuation and rating: the leading brand of household appliances in the world maintains the "buy" rating. Haier is positioned as the world's leading brand of household electrical appliances. Through seven brand strategies, Haier provides solutions for a better life for smart families, and privatizes its H-share subsidiary to significantly improve governance efficiency. Considering the downward trend of overseas demand and the repeated epidemic in China, the net profit attributable to the parent company in 20222023 was reduced to 14.8/17.4 billion yuan (down - 2.1% / - 1.0% respectively compared with the original forecast), and the new forecast was that the net profit attributable to the parent company in 2024 was 20.3 billion yuan, with the current price corresponding to PE of 14, 12 and 10 times, maintaining the "buy in" rating.
Risk tip: the demand for overseas durable consumer goods is declining, and the price of raw materials is high for a long time.
