\u3000\u3 China Vanke Co.Ltd(000002) 959 Bear Electric Appliance Co.Ltd(002959) )
Event: in 2021, the company achieved an operating revenue of 3.606 billion yuan, a year-on-year increase of – 1.46%, and a net profit attributable to the parent company of 283 million yuan, a year-on-year increase of – 33.81%; Among them, 2021q4 achieved an operating revenue of 1.242 billion yuan, a year-on-year increase of + 6.83%, and a net profit attributable to the parent company of 94 million yuan, a year-on-year increase of – 11.13%. Based on 156444000 shares, the company distributed a cash dividend of 6.00 yuan (including tax) to all shareholders for every 10 shares.
The growth rate of other small electric appliances is bright, and the pot type is growing steadily
In terms of categories, the revenue growth rate of electric / electric / pot / pot / western electric appliances / small household appliances / other small household appliances in 21 years was – 31% / – 19% / 13% / 12% / 2% / 1% / 96%. Other small household appliances grew at a high speed, and the just needed category pot and pot and the company’s advantageous category pot grew steadily. From the perspective of 21h2, the revenue growth rate of electric / electric / pot / pot / Western appliances / small household appliances / other small household appliances was – 25% / – 14% / 15% / 5% / 4% / – 5% / 137%. The growth rate of other small household appliances was bright in the second half of the year, and pot and pot products increased steadily. In the 21st year, the company launched many products such as nursing, mother and baby, and non electric products (cookware, tableware, etc.), which significantly increased the revenue of other small household appliances.
Upgrading the product structure, increasing the gross profit, increasing the proportion of self-supporting and expanding expenses
In 2021, the gross profit margin of the company was 32.78%, year-on-year + 0.35pct, and the net profit margin was 7.86%, year-on-year -3.84pct; The gross profit margin of 2021q4 was 29.88%, year-on-year + 5.24pct, and the net profit margin was 7.6%, year-on-year -1.54pct. By category, the gross profit margin of electric / pot / pot / western electric appliances / small household appliances in 21 years was – 3 / – 0.2 / – 0.2 / + 0.9 / + 2.8pct respectively year-on-year, and that of 21h2 electric / pot / pot / western electric appliances / small household appliances was – 0.2 / + 2.2 / – 0.7 / + 1.9 / + 6.4pct respectively year-on-year. The gross profit margin of small household appliances increased significantly. In addition, the company has upgraded its product structure in 21 years, launched some high-end products and improved the overall average price level.
The company’s sales, management, R & D and financial expense rates in 2021 were + 3.31, + 0.28, + 0.73 and -0.04pct respectively year-on-year; In the quarter of 21q4, the rates of sales, management, R & D and financial expenses were + 6.79, – 0.7, + 0.23 and – 0.2pct respectively year-on-year. The company’s sales expense ratio increased significantly, mainly due to the increase in the proportion of self operated and the decrease in the proportion of distribution. The company increased its brand marketing investment in emerging channels and continued to expand its brand influence. From the perspective of breakdown items, the company’s market promotion fee investment increased by 49% year-on-year.
Investment suggestion: on the revenue side, the company actively promotes the steady growth of rigid demand categories. At the same time, the growth rate of the company’s emerging categories is good, and there is still a lot of room for development in the future. On the profit side, the company adjusts the channel structure and launches new products at high prices to stabilize the overall gross profit margin. If the pressure on the cost side is relieved, it is expected to significantly improve the overall profit level. The company gradually eliminates the impact of high base, and the growth rate is expected to return to normal in the future. Based on the company’s annual report, we appropriately reduced the growth rate of revenue, and as the increase in the proportion of direct sales will increase relevant expense investment, we increased the proportion of gross profit margin and expense investment. It is estimated that the net profit in 22-24 years will be 350 million yuan, 430 million yuan and 500 million yuan respectively (the value was 410 million yuan and 520 million yuan before 22-23 years), corresponding to the dynamic valuation of 19x, 16x and 13X respectively, maintaining the “buy” rating.
Risk warning: the sales of new products are less than expected; Fluctuation risk of raw materials; Macroeconomic fluctuation risk, etc
