\u3000\u3 Shengda Resources Co.Ltd(000603) 195 Gongniu Group Co.Ltd(603195) )
Event: Gongniu Group Co.Ltd(603195) published the annual report of 2021. The company achieved revenue of 12.38 billion yuan in 2021, yoy + 23.2%; Achieved a performance of 2.78 billion yuan, yoy+20.2%. After conversion, the revenue of 2021q4 in a single quarter was 3.37 billion yuan, yoy + 16.1%; Achieved a performance of 570 million yuan, yoy-19.7%. Bull Q4 revenue maintained a rapid growth trend, and its performance was under pressure under cost pressure. The company issued share repurchase plan and equity incentive plan to maintain a long-term incentive mechanism for the management.
The intelligent electrical business continued to expand, driving the stable growth of bull's revenue: the revenue growth of bull Q4 in the single quarter was Q3 + 11.0pct month on month, and the revenue of bull Q4 in 2021q4 increased by 34.4% compared with 2019q4. By product, the revenue of 2021h2 electrical connection products / intelligent electrician lighting products / digital accessories products is yoy + 4.3% / + 20.5% / - 11.5%. The company focuses on the front decoration link, and the intelligent electrical lighting category (including wall socket, LED lighting and other products) is growing rapidly. In 2021, the income of bull wall socket was yoy + 29.6%, an increase of 19.2% compared with 2019; LED lighting revenue yoy + 38.5%, an increase of 27.6% compared with 2019. The company gave full play to its brand and channel advantages, incubated and launched intelligent ecological products such as Yuba, intelligent door lock, intelligent clothes dryer and intelligent curtain machine. In 2021, the revenue of other products was yoy + 139.6%.
The profitability of bull Q4 declined in the single quarter: the net profit margin of bull 2021q4 in the single quarter was 17.0%, with a year-on-year increase of -7.6pct and a month on month increase of q3-7.6pct. Specifically, the decline of the company's profitability is mainly affected by the gross profit margin. In Q4, the company's gross profit margin was -9.3pct year-on-year. Q4 gross profit margin decreased significantly year-on-year and month on month, mainly due to: 1) increased cost pressure; 2) The company's product structure has changed, and Yuba, intelligent door lock, intelligent curtain and other categories with relatively low gross profit margin have increased rapidly.
The company issued the share repurchase plan and equity incentive plan: the company plans to repurchase the company's shares in the form of centralized bidding with its own funds of 200 million yuan to 300 million yuan, all for the implementation of equity incentive, and the repurchase price shall not exceed 203 yuan / share. The company issued the draft equity incentive plan, which plans to grant 1.55 million restricted shares to 670 incentive objects, accounting for 0.3% of the total share capital, and the grant price is 65.46 yuan / share. The performance assessment target of the 1st / 2nd / 3rd lifting of sales restriction period is that the income or net profit in 2022 / 2023 / 2024 is not lower than the average level of the previous three fiscal years and not lower than 110% of the average level of the previous two fiscal years. It is estimated that the expenses to be amortized from 2022 to 2025 will be 41.536 million yuan / 36.743 million yuan / 14.378 million yuan / 3.195 million yuan. In 2021, the company's restricted stock incentive fee was 41.09 million yuan. It is expected that the equity incentive fee in 2022 will be basically the same as that in 2021.
Investment suggestion: as the leader of converter and wall opening, the company will continue to deepen the channel layout and enrich the SKUs of each production line, which is expected to increase the market share in more subdivided fields and achieve long-term stable growth. We expect the Bulls' EPS to be 5.06/6.04 yuan from 2022 to 2023, maintaining the Buy-A investment rating.
Risk tip: the sharp rise in the price of raw materials leads to the decline of profitability
