\u3000\u30 Shaanxi Zhongtian Rocket Technology Co.Ltd(003009) 11 Zhejiang Entive Smart Kitchen Appliance Co.Ltd(300911) )
Product technology-based, integrated stove leading marketing overweight and then set sail, covering for the first time, and giving a "buy" rating
The company is deeply engaged in product technology research and development of integrated stoves. Relying on bottom technologies such as side suction, lower exhaust and lower fan, the company continues to promote product differentiation and achieve innovation leadership. Facing the marketing weakness, the company actively attracts talents and innovates the mechanism, focuses on increasing marketing investment, accelerates channel upgrading, brand construction and improvement of after-sales system, and is optimistic that after the company's marketing overweight, the company will usher in a new round of high performance growth under the upgrading trend from integrated stove single product to set system integration. We expect the net profit attributable to the parent company from 2021 to 2023 to be 208 / 280 / 389 million yuan, corresponding to EPS of 1.92/2.59/3.60 yuan respectively. The current share price corresponds to PE of 30.6/22.7/16.4 times. It is covered for the first time and given a "buy" rating.
With low permeability and high scenery, the integrated stove industry has broad growth space
Integrated stoves solve the pain points of traditional smoke stoves. They have gone through three stages: Ring suction lower row, side suction lower row and side suction modularization. The form tends to mature. With the improvement of consumer awareness, the penetration rate of integrated stoves has increased from 2.1% in 2015 to 12.0% in 2021. The industry has ushered in a period of rapid development. In 2021, the retail sales of China's integrated stove industry reached 25.6 billion yuan, with a year-on-year increase of 40.7%, outperforming the traditional smoke stove industry. Compared with the brand concentration of traditional smoke stoves, there is still a large room for the brand improvement of the head of integrated stoves. Steaming and baking integrated / independent integrated stoves continue to sell well, and the proportion of high-end products continues to increase, which promotes the industry to enter the bonus period of structural upgrading. With the continuation of category upgrading, the industry has broad growth space.
The advantages of product R & D are significant, and the shortcomings of channel marketing are made up
(1) product R & D end: focusing on integrated stoves, adhering to the concept of "sales generation, R & D generation and reserve generation", and relying on deep underlying technology, we have successively built dishwasher integrated stoves S7, the industry's first independent integrated stoves S8 for steaming and baking, the industry's first cloud intelligent integrated stoves d5z, the world's first "ice steaming integrated" intelligent cooking housekeeper S9 and Yitian integrated cooking and washing center, leading through product differentiation. (2) Channel end: offline channels gradually improve the quality of dealers by raising the threshold and empowering the system, recruit big businessmen, speed up the development of the first and second tier markets, and actively develop Ka, home decoration and engineering channels through talent introduction, team formation and new special models; Based on the drainage positioning, the online channel cooperates with the rapid development of offline through the superposition of the policy of the same model and the same Commission. (3) Brand marketing: increase advertising investment and layout of online emerging grass planting channels, comprehensively improve the brand under the transformation and upgrading of stores and the opening of a new logo, and pay attention to the construction of the after-sales system of "Yitian service brother", which is expected to form a word-of-mouth effect.
Risk warning: rising risk of raw materials; Market competition intensifies risks; Channel expansion is less than expected risk.
