\u3000\u3 Shengda Resources Co.Ltd(000603) 195 Gongniu Group Co.Ltd(603195) )
Events
1) on April 11, the company released its 2021 annual report. In 2021, the company achieved a revenue of 12.39 billion yuan, a year-on-year increase of + 23.2%; The net profit attributable to the parent company increased by 20.2% year-on-year to 2.78 billion yuan. Among them, 4q company's revenue / net profit attributable to the parent company were + 16.1% / - 19.7% year-on-year respectively. The dividend plan is to pay out 24 yuan (including tax) for every 10 shares.
2) the company disclosed the stock incentive plan and plans to grant a total of 1.55 million restricted shares to 670 core employees at a price of 65.46 yuan per share. The three-phase unlocking condition is that the revenue or net profit from 2022 to 2024 is not lower than the average level of the corresponding first three fiscal years and not lower than 110% of the average level of the first two fiscal years.
3) the company plans to use 200300 million yuan to repurchase at no more than 203 yuan / share for equity incentive in the future.
Business analysis
Steady growth of electrical connection business and bright growth of lighting business: from the perspective of business, in 2021, the company's electrical connection / intelligent electrician lighting / digital accessories business increased by + 15.6% / + 36.9% / - 10.8% year-on-year to RMB 6.41/55.5/370 billion respectively, of which the revenue of 21h2 business increased by + 4.3% / + 20.5% / - 11.3% year-on-year. The electrical connection business is expected to rely on the expansion to the field of industrial terminal power distribution and new energy, and the growth rate of 4q is expected to increase month on month. The lighting business in the intelligent electrical lighting business is expected to grow by more than 40% in H2, and the intelligent ecological products such as Yuba and intelligent door locks are expected to grow by more than 150% in H2. In terms of sub channels, the b-end and e-commerce performed well, with revenue of + 175.2% / 31.8% year-on-year respectively. In particular, the b-end channel company has rapidly developed the home decoration and tooling market. At present, it has established stable cooperation with more than 120 well-known decoration enterprises, covering more than 10000 outlets. The home decoration channel is becoming an important driving force for the growth of the company.
4q's gross profit margin is under pressure, and the expense rate control is excellent: the company's gross profit margin in 21 years is - 3.2pct to 37.0% year-on-year, of which 4q's gross profit margin is - 9.3pct to 32.3% year-on-year, mainly due to the high price of 4q raw materials and the weak hedging effect of the company compared with the first three quarters, and the proportion of new products with low gross profit margin of the company is increased. It is expected that after that, with the gradual decline of raw material prices and the deepening of intelligent manufacturing, the profitability of the company is expected to be gradually repaired. In terms of expense rate, the sales expense rate of 4q is - 0.5pct to 4.8% year-on-year, and the management expense rate is - 1.6pct to 3.0% year-on-year. The results of BBS business management system are reflected.
The stock incentive plan lays the foundation for growth, and the new category + new channel drive is worth looking forward to: Although the unlocking conditions of the stock incentive plan correspond to the growth target is not high, it can better bind the core team, and the company has also clearly established the two tracks of intelligent ecology and new energy as the future development direction. Relying on the extreme product power, new categories such as main lights and charging guns / piles can grow with the expansion of more new channels.
Profit forecast and investment suggestions
We expect the company's EPS to be 5.55/6.49/7.49 yuan in 22-24 years, and the current share price corresponding to PE is 23 / 20 / 17 times respectively. In view of the company's new business growth and low valuation, it is raised to the "buy" rating.
Risk tips
Poor channel expansion at end B; Poor expansion of new categories; The price of raw materials has risen sharply.
