\u3000\u3 China Vanke Co.Ltd(000002) 677 Zhejiang Meida Industrial Co.Ltd(002677) )
Event: Zhejiang Meida Industrial Co.Ltd(002677) released the 2021 annual report. The company achieved a revenue of RMB 2.164 billion in 2021, a year-on-year increase of + 22.19%; The net profit attributable to the parent company was 665 million yuan, a year-on-year increase of + 22.28%; The non net profit deducted was 635 million yuan, a year-on-year increase of + 17.21%. Among them, the revenue in 2021q4 was 630 million yuan, a year-on-year increase of + 6.00%; The net profit attributable to the parent company was 214 million yuan, a year-on-year increase of + 2.63%; The non net profit deducted was 197 million yuan, a year-on-year increase of – 5.15%. At the same time, the company plans to distribute a dividend of 426 million yuan (including tax) to all shareholders, with a dividend rate of 64.15%.
The industry maintained a high outlook, and the company accelerated the upgrading of product structure. According to the data of Aowei cloud, the overall retail volume / retail volume of the integrated stove Market in 2021 were 3.04 million sets / 25.6 billion yuan respectively, with a year-on-year increase of 28% / 41% respectively. Under the high-profile atmosphere of the industry, the company continued to upgrade its product structure, mainly promoting an integrated cooker for steaming and baking, and cooperated with tmall spirit to add voice control function to the integrated cooker products. In 21 years, the company’s income from integrated stoves / cabinets was 1.968 billion yuan / 59 million yuan respectively, with a year-on-year increase of 24.89% / 35.67% respectively.
The profitability is relatively stable, and the cost control is active and effective. Gross profit margin: under the pressure of rising raw material costs, the company’s gross profit margin fell 1.07pct to 51.69% year-on-year in 21 years. Rate side: the company’s expenses are well controlled, with small changes in various rates. The sales expense rate / management expense rate / R & D expense rate in 21 years are 11.22% / 6.45% / 3.16% respectively, with a year-on-year increase of 0pct / – 0.11pct / + 0.09pct. Net profit side: under strong cost control, the company’s net interest rate has increased slightly, and the company’s net interest rate has increased by 0.02pct to 30.72% in the same period in 21 years. In terms of cash flow: the net operating cash flow of the whole year was 619 million yuan, a slight decrease of 2.41% year-on-year, mainly due to the increase of advertising expenses due to the increase of brand publicity in the short term.
Promote the diversification of channels and strengthen the operation of dual brands. From the perspective of channels, the company accelerated the diversified transformation of channels. In terms of dealer channels, the company cultivated large merchants and improved the output capacity of single stores. In 21 years, the company added more than 300 first-class dealers / terminal stores / 380, and the cumulative number of first-class dealers / terminal stores reached more than 1900 / 2800; In terms of Ka channels, the company added 330 / 195 / 320 chain appliance stores / building materials market / sinking channel stores respectively. By the end of 2021, the company had accumulated more than 2500 stores in Ka stores; In terms of home decoration channels, we cooperated with well-known home decoration companies, and actively carried out the construction of community store channels in the first and second tier cities. The number of stores opened throughout the year reached more than 80. From the perspective of brand, the double brand operation has been strengthened. The company has improved the brand awareness of tianniu through a series of activities such as opening tmall flagship store, naming high-speed railway special train and launching new media advertising. In 2021, tianniu brand added 68 first-class dealers, opened 55 terminal stores, signed 300 contracts and opened 150 stores.
Profit forecast and investment suggestions. We estimate that the net profit attributable to the parent company from 2022 to 2024 will be RMB 786 million, RMB 934 million and RMB 1108 million respectively, with a year-on-year growth rate of 18.3%, 18.8% and 18.5%, maintaining the “buy” investment rating.
Risk tip: raw material price fluctuation, real estate market fluctuation and intensified market competition.
