\u3000\u3 China Vanke Co.Ltd(000002) 959 Bear Electric Appliance Co.Ltd(002959) )
Event: in 2021, the company realized 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%. Q4 company 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%.
Q4 business improved month on month, and the proportion of income from other small household appliances such as mother and child care increased rapidly. Throughout the year, the revenue of Q1 ~ Q4 companies increased by + 22.66 / – 25.72 / – 6.29 / + 6.83% year-on-year in a single quarter, and the revenue of Q4 turned positive.
In terms of products, in 2021, the company’s operating revenue of pot / pot / Western style / electric / electric heating / small household appliances / other small household appliances was RMB 767 / 6.28 / 6.11 / 5.97 / 3.30 / 4.07 / 228 million respectively, and 21h2 was + 15.19 / + 4.73 / + 3.67 / – 25.33 / – 13.76 / – 4.96 / + 136.91% year-on-year respectively. In terms of product structure, the revenue of 21h2 pot / pot / Western style / electric / electric / small household appliances / other small household appliances accounted for 22.61/17.00/17.05/14.91/8.59/11.60/7.48% respectively, which was + 2.67 / + 0.35 / – 5.37 / – 1.53 / – 0.80 / + 4.28pct year-on-year compared with 20h2 respectively. The revenue of pot and other small household appliances such as mother and child care increased the most rapidly, with a significant increase in the proportion.
In terms of regions, the company’s foreign income in 21 years was 3.376230 billion yuan respectively, with a year-on-year increase of – 2.16 / + 9.92%, and that of 21h2 was + 1.52 / + 2.04% respectively.
In terms of sales mode, online sales mode accounted for 90.09%, with a year-on-year rate of -0.84pct, and the annual Wuxi Online Offline Communication Information Technology Co.Ltd(300959) revenue was -2.37 / + 7.63% respectively year-on-year
Adjust the product structure and price, alleviate the cost pressure, increase the investment of promotion expenses and seize the new platform. In 2021, the company achieved a gross profit margin of 32.78%, a year-on-year increase of + 0.35pct, and Q4 achieved a gross profit margin of 29.88%, a year-on-year increase of + 5.23pct. If the adjustment of transportation cost accounting standards is considered, the gross profit margin of Q4 will be improved by about 2.62pct. We believe that the reason for the improvement of the company’s Q4 profit is that the company has actively adjusted the product sales structure and price. The average price of Taobao / JD Q4, a personal care product with a significant increase in the proportion of revenue in 21 years, is + 35.16 / + 27.85% year-on-year respectively. Other categories have also been promoted and repriced to alleviate the cost pressure.
In terms of products, the gross profit margin of pot / pot / Western style / electric appliances in 2021 was + 2.21 / – 0.74 / + 1.93 / – 0.23pct year-on-year respectively, and the gross profit margin of small household appliances in 21 years was + 2.77pct year-on-year. In terms of regions, affected by multiple adverse factors such as raw materials, shipping and exchange rate fluctuations, the overseas gross profit margin of 21h2 further decreased by 11.91pct to 14.62%, while the H2 gross profit margin in the Chinese market was + 3.65pct year-on-year.
In terms of expense ratio, the company’s sales / management / R & D / financial expense ratio in the past 21 years was + 3.31 / + 0.28 / + 0.73 / – 0.04pct year-on-year respectively, and the expense ratio of Q4 company was + 6.79 / – 0.70 / + 0.23 / – 0.20pct year-on-year respectively. The substantial increase in sales expenses is mainly due to the increase in the proportion of self operated and the increase in market promotion expenses. In 21 years, the company’s market promotion expenses increased by 48.58% year-on-year, accounting for + 2.89 pct of revenue year-on-year. The company tiktok, plump, Xiao Hong and other emerging social platforms to carry out joint marketing activities, to achieve multi-dimensional exposure of the brand, enhance brand influence. The rise of costs and the increase of expense rate have significantly reduced the company’s profitability. In 2021, the company’s net profit margin on sales was 7.86%, year-on-year -3.84pct, and Q4 company achieved a net profit margin of 7.60%, year-on-year -1.54pct.
The net cash generated from operating activities decreased and the turnover efficiency decreased.
1) at the end of the period, the company’s cash + other current assets totaled 721 million yuan, a year-on-year increase of – 29.17%, mainly due to
The decrease of net cash flow from operating activities in 21 years; As the accounts receivable had not reached the settlement period, the total amount of notes and accounts receivable was 127 million yuan, a year-on-year increase of – 11.88%; The total inventory was 616 million yuan, with a year-on-year increase of + 15.88%, of which the raw materials / goods in stock were + 23.77 / + 31.58% year-on-year respectively; The total contract liabilities at the end of the period amounted to 40 million yuan, a year-on-year increase of – 33.57%, mainly due to the decrease of the company’s advance receipts.
2) from the perspective of turnover, the turnover days of the company’s inventory / accounts receivable / accounts payable were + 15.1 / + 1.3 / + 10.1 days year-on-year respectively. The company alleviated the pressure of inventory and accounts receivable by pressing money upstream, which reflected the company’s industrial position to a certain extent.
3) due to the decline in the scale of the company’s operating income, the net cash flow from the company’s operating activities in 2021 was 171 million yuan, a year-on-year increase of – 85.83%, and the net operating cash in Q4 was 439 million yuan, a year-on-year increase of – 21.19%.
Adjust the product matrix and structure, seek new growth, and develop new brands of clean environmental appliances. The company focuses on developing new categories of products such as personal care, mother and baby, adjusting the company’s product matrix, providing new growth points and optimizing product profitability. In the second half of the year, the company launched C02 suction and drag integrated floor washing machine through the high-end Brandt brand to distribute to clean environment appliances. In 2021, Baolang appliance realized an operating revenue of 1.02 million yuan. We believe that in the future, the company will continue to launch high-end clean environment appliances through the Brandt brand to promote the sustainable development of multi brand and multi category.
Profit forecast and investment rating: we believe that in the face of the increasing competition in the small household appliance market, the company will actively invest in the cost, seize the emerging social platform, adjust the sales model, continuously launch new categories and SKUs, and realize the upgrading and construction of the brand. In the long run, it will further consolidate the dominant position of the company. If the intensive investment in the early stage of the new platform ends, the company’s future sales expenses will return to normal, and its profitability may be significantly improved. We estimate that the company’s operating revenue in 22-24 years will be RMB 4.070/47.43/5.470 billion, with a year-on-year increase of + 12.9/16.5/15.3%, and the net profit attributable to the parent company in 22-24 years will be RMB 345432/505 million, with a year-on-year increase of + 21.8/25.3/16.9%, corresponding to pe19.9% 50 / 15.56/13.31 times. The company is currently at the bottom of the two-year historical valuation. It is optimistic about the growth space of the small household appliance industry for a long time and maintains the “buy” rating.
Risk factors: the macroeconomic downturn leads to the downturn of terminal demand, the launch of new products of the company is less than expected, the development of overseas markets is less than expected, and the price of raw materials remains high
