driven by the “housing economy”, Bear Electric Appliance Co.Ltd(002959) whose value soared once was accidentally caught on fire in the cooperative warehouse, resulting in a loss of more than 50 million yuan
A few days ago, Bear Electric Appliance Co.Ltd(002959) (hereinafter referred to as ” Bear Electric Appliance Co.Ltd(002959) “) announced that it had received the information document from the cooperative warehouse Hunan Zhongcang Supply Chain Management Co., Ltd. (hereinafter referred to as “Zhongcang supply chain”), which specifically stated that the warehouse of Zhongcang supply chain located in the comprehensive bonded zone of Jiuhua Economic Development Zone, Xiangtan City, Hunan Province caught fire at about 9:40 on April 1, resulting in the damage to the company’s inventory. After the fire, the local fire department quickly arrived at the scene to carry out rescue. At present, the fire has been extinguished without causing any casualties. The cause of the fire accident is being investigated and verified.
On April 7, Bear Electric Appliance Co.Ltd(002959) Taobao’s official flagship store customer service said that the delivery was not affected at present.
cooperative warehouse fire
Bear Electric Appliance Co.Ltd(002959) said in the announcement that according to preliminary statistics, the damaged goods entrusted by the company to the Zhongcang supply chain to keep and provide delivery services are worth about 55 million yuan. Through the emergency deployment of inventory products, the company makes this fire accident have little impact on the recent sales and delivery, and does not affect the normal production and operation of the company. At present, all businesses of the company are carried out normally. The company will start relevant claim and claim settlement procedures, and urge third-party service providers to strengthen safety management to prevent similar accidents from happening again.
In addition, Zhongcang supply chain also said that it has taken out property insurance from the insurance company, which has accepted it. At present, the fire loss is being assessed, and promised to bear full liability for the losses caused by Bear Electric Appliance Co.Ltd(002959) in this accident.
On April 7, the reporter of the international finance news called Bear Electric Appliance Co.Ltd(002959) on the progress of the accident investigation and whether it had an impact on the delivery, but the phone was never answered. Subsequently, the reporter asked Bear Electric Appliance Co.Ltd(002959) Taobao’s official flagship store as a consumer, and its customer service said that the delivery was not affected at present.
Public information shows that Bear Electric Appliance Co.Ltd(002959) was born in March 2006. It is an enterprise specializing in the R & D, design, production and sales of creative small household appliances. Its main products are egg cookers, electric steamers, yogurt machines and electric stewing cups. It is known as the creator of “cute household appliances” and was officially listed on the Shenzhen Stock Exchange on August 23, 2019. According to its official website, the company has established a three-level R & D system, 10 R & D teams, more than 300 R & D personnel, developed more than 100 new products every year, and said that the average revenue growth rate in the past five years has reached more than 37%.
Judging from the performance of Bear Electric Appliance Co.Ltd(002959) , it has indeed maintained excellent growth performance in the past five years. According to the data, from 2016 to 2020, Bear Electric Appliance Co.Ltd(002959) achieved revenue of 1.054 billion yuan, 1.647 billion yuan, 2.041 billion yuan, 2.688 billion yuan and 3.66 billion yuan; The net profits were 715359 million yuan, 147 million yuan, 186 million yuan, 268 million yuan and 428 million yuan respectively.
However, after entering 2021, Bear Electric Appliance Co.Ltd(002959) ‘s performance showed signs of decline. According to the latest financial report, Bear Electric Appliance Co.Ltd(002959) 2021 achieved a revenue of about 2.365 billion yuan in the first three quarters, a year-on-year decrease of 5.32%, and a revenue of about 731 million yuan in the third quarter, a year-on-year decrease of 6.29%; The net profit in the first three quarters was about 189 million yuan, a year-on-year decrease of 41.29%, and the net profit in the third quarter was about 49.965 million yuan, a year-on-year decrease of 26.25%.
It seems that the insurance company will not bear all the losses caused by the shortage of supply in the insurance chain this year, but the insurance company will not bear all the losses caused by the shortage of supply in the insurance chain this year
performance and share price are under pressure
Nevertheless, the fire incident has once again increased the attention of the outside world to Bear Electric Appliance Co.Ltd(002959) and many investors are worried about the decline of its performance.
Liu buchen told reporters that in 2021, almost all small household electrical appliance enterprises experienced a decline in performance or lack of growth momentum, mainly due to the industrial surge in the small household electrical appliance industry in 2020, which has not been seen for many years, pulling the performance base to a high level, while the demand of the small household electrical appliance market turned down in 2021, making it difficult for enterprises to achieve sustainable growth, “As far as Xiaoxiong (electric appliance) is concerned, as an emerging small household appliance enterprise, although its brand image is relatively young, its product power is still slightly insufficient compared with its peers such as stone, Ecovacs Robotics Co.Ltd(603486) , Xinbao and so on. Once the market situation becomes tighter, it is inevitable that it will take the lead in falling down.”
It is worth mentioning that it is not difficult to find that the performance has changed from increase to decrease, and Bear Electric Appliance Co.Ltd(002959) ‘s share price has also fallen continuously after soaring. In 2020, Bear Electric Appliance Co.Ltd(002959) share price climbed all the way from about 50 yuan in early January to 160.93 yuan / share, the highest in July of that year, with an increase of more than 200%, and the market value once exceeded 25 billion yuan. However, since then, it has fluctuated downward. As of the closing on April 7, its share price has fallen from a high to 44.27 yuan / share, down more than 70% compared with the previous high share price. At present, the market value is about 6.924 billion yuan.
“The soaring share price of Xiaoxiong (electric appliance) before July 2020 is related to the better overall market of small household appliances at that time, while the general decline of small household appliance stocks after 2021 is related to the decline of market confidence; from the overall environment of small household appliances, there is still good growth space in the future, but it is difficult to have a sharp rise like that in 2020.” Liu buchen said.
The reporter noted that on March 28, Bear Electric Appliance Co.Ltd(002959) once issued a repurchase report, saying that the company plans to use its own funds of RMB 80-120 million to repurchase some of the company’s shares in the form of centralized bidding transaction. The type of repurchased shares is A-share shares issued by the company, and the price of repurchased shares does not exceed 55 yuan / share. According to the repurchase amount and the repurchase ceiling price, the number of repurchased shares is expected to be 14545 Guangdong Guangzhou Daily Media Co.Ltd(002181) 800 shares, It accounts for about 0.93% – 1.39% of the total issued share capital of the company.
Bear Electric Appliance Co.Ltd(002959) said that the specific number of shares repurchased is subject to the actual number of shares repurchased at the expiration of the repurchase period or after the implementation of the repurchase. The repurchase period is within 12 months from the date when the board of directors deliberates and approves the share repurchase plan. The shares repurchased this time will be used to implement the company’s equity incentive plan and / or employee stock ownership plan, so as to further improve the company’s governance structure and further establish and improve the company’s long-term incentive mechanism, Motivate the management team, ensure the realization of the company’s long-term business objectives and shareholders’ interests, and enhance the overall value of the company.
In Liu buchen’s opinion, “for Xiaoxiong, how to cultivate the development of innovative products and how to further improve the brand’s sense of science and technology and fashion is an urgent task. If Bear Electric Appliance Co.Ltd(002959) can change from a marketing oriented enterprise to an innovation oriented enterprise in the next two years, there will be good development, otherwise there will be insufficient development or momentum in the future.”
