\u3000\u3 China Vanke Co.Ltd(000002) 959 Bear Electric Appliance Co.Ltd(002959) )
Performance summary: the company released the annual report of 2021. During the reporting period, the company achieved a revenue of 3.61 billion yuan, a year-on-year decrease of 1.5%; The net profit attributable to the parent company was 280 million yuan, a year-on-year decrease of 33.8%; The net profit attributable to the parent company after non deduction was 260 million yuan, a year-on-year decrease of 34.8%. In a single quarter, Q4 company achieved a revenue of 1.24 billion yuan, a year-on-year increase of 6.8%; The net profit attributable to the parent company was 99.423 million yuan, a year-on-year decrease of 11.1%; The net profit attributable to the parent company after non deduction was 88.307 million yuan, a year-on-year decrease of 7.1%. The company plans to distribute 6 yuan (including tax) for every 10 shares.
The company’s performance is better than that of the industry. The weak demand for small kitchen appliances in China, combined with the impact of 20-year high base, has led to a decline in industry sales in 21 years. According to the total data of AVC omni-channel promotion, the sales of small kitchen appliances in 21 years was 51.4 billion yuan, a year-on-year decrease of 14.1%, including online sales of 35.64 billion yuan, a year-on-year decrease of 9.7%, and offline sales of 15.72 billion yuan, a year-on-year decrease of 22.7%. Under the background of weak prosperity of the industry, the company’s revenue also presents a certain pressure, but its business performance is significantly better than that of the industry, and shows a trend of improvement quarter by quarter. In terms of quarterly split, the company’s revenue in the second and third quarters of 21 years decreased by 68.3% and 34.4% respectively year-on-year. In the fourth quarter, the company’s revenue began to pick up, with a year-on-year increase of 6.8%.
Product structure optimization, diversified products and stable revenue. The company adheres to the product diversification strategy. In 2021, the revenue of small kitchen appliances / small household appliances / other small household appliances accounted for 81.3% / 11.3% / 6.3% respectively, with a year-on-year decrease of – 3.8pp / + 0.3pp/3.1pp respectively. The revenue of small kitchen appliances decreased by 5.9% year-on-year, while the revenue of small household appliances / other small household appliances increased by 1.3% / 96.1% year-on-year respectively. The multi category strategy has gradually taken effect. In terms of the breakdown of small kitchen appliances, the revenue of electric / electric / pot / pot / Western appliances accounted for 16.6% / 9.2% / 21.3% / 17.4% / 17.0% respectively. The revenue decline was mainly caused by the revenue decline of electric / electric appliances by 31.0% / 18.9% respectively, while the revenue of pot / pot / Western appliances increased by 12.6% / 11.5% / 1.8% year-on-year.
Gross profit margin declined slightly and profitability was under pressure. During the reporting period, the company’s comprehensive gross profit margin was 32.8%, down 0.3pp year-on-year, of which Q4 gross profit margin was 29.9%, up 5.2pp year-on-year and down 4.1pp month on month. The continuous rise of raw material prices has had a certain impact on the company’s gross profit margin, but the company has smoothed the pressure on raw material prices by optimizing product structure and increasing the proportion of self-employed enterprises. In terms of expenses, the company’s sales expense ratio was 15.3%, with a year-on-year increase of 3.3pp; The management expense ratio was 2.6%, with a year-on-year increase of 0.3pp; The R & D expense rate is 3.6%. Increased by 0.7pp year-on-year. Overall, the company’s net profit margin was 9.1%, a year-on-year decrease of 5pp, and its profitability was under pressure.
Profit forecast and investment suggestions. With the mitigation of external factors, the company’s operation has gradually improved. In the long run, the small household appliance industry has a broad space, the company’s product structure continues to be optimized and its comprehensive competitive strength continues to be strengthened. It is expected that the EPS will be 2.16 yuan, 2.69 yuan and 3.25 yuan respectively from 2022 to 2024, maintaining the “hold” rating.
Risk warning: the price of raw materials may fluctuate sharply, and the terminal sales are less than expected.
