\u3000\u3 Shengda Resources Co.Ltd(000603) 195 Gongniu Group Co.Ltd(603195) )
Event: the company issued the annual report of 2021. During the reporting period, the company achieved a revenue of 12.385 billion yuan, a year-on-year increase of 23.22%; The net profit attributable to the parent company was 2.78 billion yuan, a year-on-year increase of 20.18%; The basic earnings per share is 4.63 yuan / share. Among them, the company achieved a revenue of 3.372 billion yuan in the fourth quarter, a year-on-year increase of 16.13%; The net profit attributable to the parent company was 574 million yuan, a year-on-year decrease of 19.65%.
The gross profit margin is under pressure due to the pressure of raw materials and the launch of new products. During the reporting period, the company’s comprehensive gross profit margin was 36.95%, a year-on-year decrease of 3.17%. Among them, the single quarter gross profit margin in the fourth quarter of 2021 was 32.27%, down 9.31% year-on-year and 8.67% month on month. The company’s gross profit margin has declined, mainly because: 1) the prices of the company’s main raw materials plastics and copper remain high, and the hedging effect of the company has weakened. 2) The gross profit margin of the company is relatively low, and the company is in the promotion stage of traditional products.
The effect of expense control was obvious, and the net interest rate decreased year-on-year. During the reporting period, the company’s expenses improved significantly, and the expense rate was 11.07%, a year-on-year decrease of 2%. Among them, the sales expense ratio was 4.52%, a year-on-year decrease of 0.63%; The rate of administrative expenses was 3.45%, a year-on-year decrease of 0.83%; The financial expense ratio was – 0.71%, with a year-on-year decrease of 0.35%; The R & D expense ratio was 3.8%, a year-on-year decrease of 0.19%. In terms of net profit margin, limited by the decline of gross profit margin, the net profit margin of the company during the reporting period was 22.45%, a year-on-year decrease of 0.57%. Among them, the net profit margin of 21q4 in a single quarter was 17.02%, a year-on-year decrease of 7.58% and a month-on-month decrease of 7.56%.
The intelligent electrician lighting business has developed steadily and performed well in subdivided categories. During the reporting period, the company’s electrical connection / intelligent electrician lighting / digital accessories business achieved revenue of RMB 64.13/55.51/373 million respectively, with a year-on-year change of 15.58% / 36.9% / – 10.79% respectively. In the intelligent electrical lighting business, the revenue of wall switch and socket products increased by 29.55% year-on-year, the revenue of LED lighting products increased by 38.53% year-on-year, and the revenue of intelligent ecological products such as Yuba, intelligent door lock and intelligent clothes dryer increased by 139.56% year-on-year.
Comprehensively promote the integration of channels, offline and online collaboration and complementarity. In terms of C-end channels, the company continues to expand channels, and has established more than 750000 hardware channel sales points, more than 120000 professional decoration and lighting sales points and more than 250000 digital accessories sales points. In terms of b-end channels, the company has in-depth cooperation with more than 120 well-known decoration enterprises and platforms such as Shengdu, Yezhifeng and shell. The outlets of decoration enterprises cover more than 10000, and the sales revenue increased by 175.2% year-on-year in 2021. In terms of online channels, the company effectively developed dozens of online authorized dealers to promote the brand in an all-round way. During the reporting period, the company’s converters and wall products maintained the first market share in tmall, and the sales revenue of e-commerce channels increased by 31.82% year-on-year.
Investment suggestion: the company continues to deepen the channel layout, continuously innovate products with user needs as the core, steadily grow traditional businesses, promote the development of new energy and intelligent ecological emerging businesses, and is optimistic about the future growth of the company. It is expected that the company will achieve eps5 in 2022 / 23 / 24 45 / 6.28 / 7.3 yuan, corresponding to 23x / 20x / 17x PE, maintaining the “recommended” rating.
