\u3000\u3 China Vanke Co.Ltd(000002) 677 Zhejiang Meida Industrial Co.Ltd(002677) )
Key investment points
Event: in 2021, the company achieved a revenue of] 2.16 billion yuan, with a year-on-year increase of 22.2%; The net profit attributable to the parent company was 660 million yuan, a year-on-year increase of 22.3%; Deduct non net profit of 640 million yuan, with a year-on-year increase of 17.2%. In a single quarter, Q4 company achieved a revenue of 630 million yuan, a year-on-year increase of 6%; The net profit attributable to the parent company was 210 million yuan, a year-on-year increase of 2.6%; The net profit attributable to the parent company after deducting non-profit was 200 million, a year-on-year decrease of 5.1%. In addition, the company plans to distribute cash dividends of RMB 6.6 per 10 shares, totaling RMB 430 million, with a dividend rate of 64.1%.
The annual revenue performance increased steadily, and the growth rate of Q4 slowed down. During the reporting period, under the background that the retail volume and retail volume of the integrated stove industry increased by 28% / 41% year-on-year respectively, the company continued to increase technological innovation and product iterative upgrading, accelerate the construction of diversified marketing channels and dual brand operation strategy, and promote the stable growth of business performance. From Q4 alone, the fourth quarter is the key period of kitchen electricity sales. In 2020, the company’s Q4 revenue accounted for 35%, with a large base, and the growth rate of Q4 company slowed down due to the repeated epidemic in the second half of the year and the cold impact of real estate.
Wuxi Online Offline Communication Information Technology Co.Ltd(300959) integrated development and accelerated channel reform. During the reporting period, the company strengthened the construction of diversified channels and laid out Ka channels in multiple directions offline. During the reporting period, the company added more than 330 chain home appliance stores and 195 chain building materials stores; Further improve the distribution channels and promote the sinking of channels and the expansion of terminal outlets. During the reporting period, the company added more than 300 first-class dealers and 380 terminal stores. Online, the company increased investment in e-commerce promotion and marketing, carried out in-depth operation, and doubled the growth of online business. In addition, driven by the company’s further strengthening cooperation with real estate and home decoration companies, the company’s engineering channels grew rapidly.
Profitability improved month on month. During the reporting period, under the influence of the rise in the price of raw materials, the company’s comprehensive gross profit margin was 51.7%, a year-on-year decrease of 1.1pp. In terms of expense rate, the company’s sales expense rate was 11.2%, unchanged year-on-year; The rate of administrative expenses was 6.5%, a year-on-year decrease of 0.1pp; The financial expense ratio was – 0.7%, with a year-on-year increase of 0.5pp. Overall, under the company’s cost control and fee reduction, the annual net interest rate was 30.7%, unchanged year-on-year. In a single quarter, the gross profit margin of Q4 was 50.8%, a year-on-year decrease of 4.6pp and a month on month increase of 1pp; The net interest rate was 33.9%, with a year-on-year decrease of 1.1pp and a month on month increase of 2.5pp. The profitability improved month on month and the recovery trend was obvious.
Profit forecast and investment suggestions. It is estimated that the EPS from 2022 to 2024 will be 1.15/1.31/1.50 yuan respectively. Considering that the company is one of the high-quality enterprises of integrated stoves, it is expected to fully enjoy the industry dividend and maintain the “buy” rating.
Risk warning: the price of raw materials may fluctuate sharply and the expansion of new products is less than expected.
