\u3000\u3 China Vanke Co.Ltd(000002) 242 Joyoung Co.Ltd(002242) )
Core view
Event: the company announced in its annual report for 2021 that it realized an operating revenue of 10.54 billion yuan in 2021, a year-on-year decrease of 6.09%; The net profit attributable to the parent company was 746 million yuan, a year-on-year decrease of 20.69%. Among them, the operating revenue in the fourth quarter was 3.509 billion yuan, a year-on-year decrease of 5.27%; The net profit attributable to the parent company was 824426 million yuan, a year-on-year decrease of 72.16%.
The domestic sales of core categories such as food processing machines and nutritional cookers are under pressure, and the income of cooking utensils has increased rapidly. By category, the company's income from food processing machines, nutrition cookers and Western electrical appliances in 2021 was 4.354 billion yuan, 3.832 billion yuan and 1.325 billion yuan respectively, with a year-on-year increase of - 18%, 12% and - 13%. Under the pressure of high base, domestic sales are under pressure; At the same time, the company actively promoted diversified layout. The annual revenue of cooker series was 752 million yuan, up 69% year-on-year, and the proportion in total revenue increased 3PCT to 7% year-on-year. By region, the company achieved revenue of 9.004 billion yuan and 1.43 billion yuan at home and abroad respectively in 2021, with a year-on-year increase of - 9% and 53%; The overseas business grew rapidly, among which the OEM income of foodI series reached 1.188 billion yuan, a year-on-year increase of 60%, accounting for about 83% of the overseas income. The synergy between the company and its related party shark Ninja continued to play. According to the announcement of related party transactions, the company expects the amount of related party transactions with shark Ninja to reach 1.35 billion in 2022, with a year-on-year increase of about 14%, and the export is expected to grow steadily.
The rise in the price of raw materials has led to pressure on profitability, and marketing and R & D continue to increase. In 2021, the company achieved a gross profit margin of 27.79%, with a year-on-year decrease of about 4pct (including the impact of reclassification of transportation expenses to the cost side of about 2.5pct); The net interest rate attributable to the parent company was 7.07%, a year-on-year decrease of 1PCT. In the fourth quarter alone, the company's gross profit margin and parent net profit margin were 23.49% and 2.35% respectively, with a year-on-year decrease of 10PCT and 5pct respectively; Excluding the impact of accounting standard adjustment, the gross profit margin of 2021q4 under comparable caliber decreased by 2pct year-on-year, mainly due to the pressure on profits caused by the rise in the price of raw materials; In 2021q4, the sales expense rate and R & D expense rate increased by about 3PCT and 1PCT respectively year-on-year. The company's investment in marketing promotion and research and innovation continued to strengthen.
Category expansion, grasp the market demand and continue to expand the three-dimensional channel network. The company will continue to promote product innovation, actively expand the product line layout of small kitchen appliances, cooking utensils, clean appliances and water appliances according to the pain points of consumer demand, grasp the rapid growth trend of emerging category demand, and promote the younger transformation of Jiuyang brand. Channel will continue to improve the content of the voice and other content e-commerce fine marketing strategy, to achieve precise touch consumers, and actively adapt to the trend of flow fragmentation under the line, through the brand stores, cross-border tiktok and other formats to expand the three-dimensional network of channel boundaries.
Profit forecast and investment suggestions
Combined with the prosperity of domestic and export demand of kitchen appliances and the price trend of raw materials, it is predicted that the net profit attributable to the parent company from 2022 to 2024 will be RMB 833 / 943 / 1062 million (previously predicted to be RMB 1171 / 1333 million from 2022 to 2023). According to the valuation of 17 times P / E ratio in 2022 given by the comparable company, the corresponding target price is RMB 18.47, maintaining the rating of "overweight"
Risk tips
Insufficient R & D and innovation capability leads to the category expansion progress not reaching the expectation; Industry competition intensifies; Risks of significant changes in China US trade policies
