\u3000\u3 China Vanke Co.Ltd(000002) 959 Bear Electric Appliance Co.Ltd(002959) )
Core view
Event: the company released its annual report for 2021, and achieved an annual operating revenue of 3.606 billion yuan, a year-on-year increase of - 1.46%; The net profit attributable to the parent company was 283 million yuan, a year-on-year increase of - 33.81%; The net profit attributable to the parent company after deducting non profits was 258 million yuan, a year-on-year increase of - 34.84%; It is proposed to distribute a cash dividend of 6.0 yuan (including tax) for every 10 shares.
Comments:
The operating performance of the whole year was under pressure, and the Q4 performance improved month on month. The company's annual performance declined. First, the base of the same period last year was large (the company's revenue and net profit attributable to the parent company in 2021 were + 34.15% / + 5.60% respectively compared with 2019). Second, the demand for small household appliances in China recovered slowly. By category, the company's revenue of pot / pot / Western style / electric / electric heating was RMB 767 / 6.28 / 6.11 / 597 / 330 million, with a year-on-year increase of + 12.56% / + 11.50% / + 1.81% / - 31.03% / - 18.84% respectively. Pot and pot products achieved good growth. Electric products were subject to intensified market competition and did not perform as expected. In terms of single quarter, the company achieved a revenue of 1.242 billion yuan in Q4, a year-on-year increase of + 6.83%, and the growth rate was positive month on month (Q3, a year-on-year increase of - 6.29%); The net profit attributable to the parent company was 94 million yuan, with a year-on-year decrease of - 11.13%, which was narrowed month on month (Q3 single quarter year-on-year - 26.25%), and the operating performance of Q4 single quarter was improved.
The increase in the proportion of self operated led to a decline in profit margin. With the sharp rise in raw material prices, the company's annual gross profit margin remained + 0.35pct to 32.78%, mainly due to the company's control over upstream suppliers and the continuous optimization of product structure. The annual sales, management and R & D expense ratio of the company was + 3.31pct / + 0.28pct / + 0.72pct to 15.34% / 3.63% / 3.60% respectively. The increase in the sales expense ratio was mainly due to the increase in the self operated proportion of the company. Under the comprehensive influence, the annual net interest rate of the company was - 3.84pct to 7.86% year-on-year.
Share repurchase shows confidence and production capacity is expected to be released gradually. At the beginning of 2022, the company announced that it planned to use RMB 80-120 million to buy back the company's shares for the implementation of equity incentive or employee stock ownership plan, highlighting the company's confidence in long-term development. The company's smart small household appliance manufacturing base project has been put into operation in early 2021, and the production capacity is expected to be gradually released. In addition, the company plans to raise 536 million yuan for the construction of smart small household appliances (phase II). This project is not only conducive to the company's further expansion of production capacity, but also the new automation and assembly production process improvement will help the company improve production efficiency.
Investment suggestion: the leading enterprise of creative small household appliances continues to improve its product strength and maintain the "buy" rating. As a leading enterprise in creative small household appliances, the company has always adhered to product innovation and strong brand power. With the recovery of the small household appliance market, the company's profitability is expected to rebound. Considering the disturbance of the "covid-19" epidemic and the pressure of raw materials, we lowered the company's profit forecast. It is estimated that the company's net profit attributable to the parent company from 2022 to 2024 will be 352 / 423 / 486 million yuan respectively (originally predicted to be 444 / 532 million yuan from 2022 to 2023), and the corresponding PE of the current market value will be 19 / 16 / 14 times respectively, Maintain the "buy" rating.
Risk tip: the development of new products is less than expected, the epidemic situation in China is repeated, and the price of raw materials is rising.
