\u3000\u3 China Vanke Co.Ltd(000002) 032 Zhejiang Supor Co.Ltd(002032) )
Event:
On March 31, 2022, Zhejiang Supor Co.Ltd(002032) issued the annual report of 2021. In 2021, the company realized an operating revenue of 21.585 billion yuan (+ 16.07%); The net profit attributable to the parent company was 1.944 billion yuan (+ 5.29%). In 2021q4, the company achieved a revenue of 5.92 billion yuan (+ 11.87%), and a net profit attributable to the parent company of 703 million yuan (- 8.16%).
Export sales revenue grew rapidly, and the revenue side grew steadily in 2021q4. 1) Quarter by quarter: the company achieved a revenue of 5.92 billion yuan (+ 11.87%) in the single quarter of 2021q4, mainly due to the upward movement of the price center caused by the increase of the company's product sales and the optimization of the sales structure, which promoted the growth of revenue. 2) In terms of business, the revenue of the company's electrical appliances and cookware business grew rapidly in 2021, reaching 14.641 billion yuan and 6.702 billion yuan respectively, with a year-on-year increase of + 13.37% and + 21.72% respectively. 3) In terms of regions, the domestic sales revenue reached 14.26 billion yuan (+ 10.80%) in 2021. The successful implementation of online transformation strategy and the change of product structure jointly promoted the growth of domestic sales revenue of the company; Export sales revenue reached 7.326 billion yuan (+ 27.91%), achieving rapid growth, mainly due to the continuous transfer of orders from SEB group to the company.
The rise in raw material prices has led to short-term pressure on profitability. 1) The gross profit margin of 2021q4 company is 15.42% (-13.62pct), which is mainly due to: a) the pressure on the cost side caused by the rise in the price of raw materials; b) The change of accounting standards leads to the adjustment of transportation expenses from sales expenses to operating costs. 2) The net profit margin of 2021q4 company is 11.88% (-2.55pct), and the main reason why the decrease of net profit margin is less than the gross profit margin is that the sales expense rate has decreased significantly due to the change of accounting standards. The sales expense rate of 2021q4 company is 0.78% (-9.29pct).
The repurchased shares are intended to be used for equity incentive to demonstrate the company's business confidence. On March 31, 2022, the company announced that it plans to buy back A-share public shares of the company with no less than 469 million yuan and no more than 937 million yuan, and the repurchase price is no more than 57.96 yuan / share. It is estimated that the upper limit of the number of shares to be repurchased is 16173600 shares, accounting for about 2% of the total share capital of the company, of which 3 million shares are intended to be used for equity incentive in the future, bind the interests of management and employees, and help realize the company's long-term business objectives.
Expand channels and promote new products at the same time, break the circle marketing and improve brand awareness. Product side: the company launched new products such as oil gathering series frying pan, far-infrared electric rice cooker and the industry's first suction and drag integrated hand washing free vacuum cleaner, and actively promoted the expansion of cooking utensils, small kitchen appliances, cleaning appliances and other categories. Kwai channel side: 1) online, the company has continuously increased the "tiktok" mode of the electricity supplier, and has actively opened up new growth channels for the new social networking platform. Currently, the platform has been dominant in such areas as shaking hands and fast hands, and the main market share of the major commodities in 2021 has been the first. 2) Offline, the company accelerated the cooperation with e-commerce platforms in the o2o channel of the sinking market, and laid out and developed the third and fourth tier markets. Marketing side: Launch IP co branded products with stars and British Museum to improve brand awareness through broken circle marketing.
We will continue to improve the channel layout, and the export business is expected to maintain a rapid growth trend. It will be covered for the first time and given a "buy" rating. The continuous expansion of the company's online channels and the implementation of the offline three or four level market layout are expected to promote the continuous growth of the company's revenue. The integration and coordination with SEB group will also help the company maintain the rapid growth trend of overseas business, cover it for the first time and give a "buy" rating. We predict that the net profit attributable to the parent company from 2022 to 2024 will be RMB 2.328/26.65/2.990 billion, corresponding to EPS of RMB 2.88/3.29/3.70, and the current share price corresponding to PE of 18.55/16.21/14.44 times.
Risk tips: repeated covid-19 epidemic, price fluctuation of raw materials, exchange rate fluctuation, intensified market competition, tight shipping capacity, etc.
