\u3000\u30 Xuchang Ketop Testing Research Institute Co.Ltd(003008) 24 Shenzhen Crastal Technology Co.Ltd(300824) )
Event: Recently, the company released its 2021 annual report.
In 2021, the company achieved a total operating revenue of 847 million yuan, a year-on-year increase of 20.84%; The net profit attributable to the parent company was 108 million yuan, a year-on-year increase of 8.11%; The net profit attributable to the parent company after deduction was 101 million yuan, with a year-on-year increase of 11.6%. At the end of the reporting period, the basic earnings per share was 0.5 yuan / share; The weighted average return on net assets was 15.98%. Relying on its excellent R & D and design level and under a complete production system, the company has a stable overseas OEM / ODM business. At the same time, its independent brand is positioned in China's high-end small household appliance market, with excellent product creativity and quality, user stickiness and brand influence.
Key investment points:
Independent brands contributed to revenue growth in large quantities, and the expansion of diversified categories was steadily promoted. According to the data of the disclosed annual report, the company's independent brand "Beiding buydeem" achieved an operating revenue of 632 million yuan in 2021, with a year-on-year increase of 26.15%. Compared with the OEM / ODM business, its scale proportion increased by 3.14 PCT to 74.64%, and its revenue contribution continued to grow. According to the classification of product types, the revenue of electrical appliances, supplies and food materials was 444 million yuan (year-on-year + 10.11%) and 188 million yuan (year-on-year + 92.56%) respectively, of which the latter accounted for more than 10 percentage points and nearly 30%. While maintaining its advantages in its main electrical business, the company actively explores the multi-dimensional needs of downstream users in various scenarios, and continues to promote the diversified and balanced development of peripheral products and services, especially in the category of cooking appliances and ingredients, which has promoted the growth of the company's revenue scale and user stickiness. Therefore, with the gradual enrichment of the company's product matrix under its own brand in the future, its profitability and brand influence may be further improved.
The results of dual end collaborative development are obvious, and the refined operation promotes the continuous improvement of brand competitiveness. The company's channel sales adopts the mode of "self-supporting + double line development", takes paying attention to user experience as the premise, adheres to multi-level expansion of interaction with consumers, and constantly strengthens its recognition and follow of the brand. In terms of channels, "Beiding buydeem" achieved online / offline revenue of 511 million yuan / 63 million yuan in 2021, with a year-on-year increase of 18.18% / 60.99%. With the steady growth of online channel revenue, the company has increased its investment in physical stores and achieved high growth of offline revenue. Among them, the annual revenue of 21 experience stores under the brand line (16 new in 2021) increased by 233.8% year-on-year, and the proportion of revenue increased by 2.62pct to 4.12%. Although the expansion of stores may indirectly lead to the increase of the company's sales expense rate by 1.69pct in 2021, with the promotion of the company's refined operation and the positive effect of the touch advantage of offline stores on online channel sales, it is expected that the speed of converting early investment into profit may be gradually accelerated, and the effect of dual line development will be continuously released.
The equity incentive plan shows the confidence of the management and is optimistic about the continuous growth of the company's independent brand performance. According to the 2022 restricted stock incentive plan disclosed by the company, the incentive objects mainly include more than 70 core managers and business backbones of the company. At the same time, taking 2021 as the base, the company makes higher requirements for its own brand in the next four years that the operating income is not less than 15% / 30% / 45% / 60% and the net profit is not less than 10% / 20% / 30% / 40%. The implementation of the plan is expected to enhance the consistency of management on the company's operating benefits, improve the corporate governance structure and fully mobilize the enthusiasm of employees. At the same time, under the current upward pressure of raw material prices and shipping costs, high performance requirements may help the company to promote the optimization of product structure and maintain the level of gross profit margin.
For the first time, give the company a "buy" investment rating. It is estimated that the company's diluted EPS from 2022 to 2024 will be 0.60/0.81/0.99 yuan respectively, calculated according to the closing price of 18.93 yuan on March 31, and the corresponding PE will be 31.5/23.3/19.1 times. In 2021, facing the complex environment at home and abroad, the company was able to quickly adjust its response strategies and achieve double growth of revenue and profit under the high base in the same period of last year. Considering the steady progress of the company in product category expansion and channel diversification layout, we are optimistic about the contribution of the company's independent brand to its overall performance growth in the future. Therefore, through comprehensive analysis, the company is given a "buy" investment rating.
Risk warning: the sales of new products are less than expected; The cost of raw materials and shipping continued to rise; The RMB exchange rate fluctuates sharply; Industry competition intensifies.
