\u3000\u3 Shengda Resources Co.Ltd(000603) 195 Gongniu Group Co.Ltd(603195) )
Event: in 2021, the operating revenue reached 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%, and the net profit attributable to the parent company after deducting non profits was 2.632 billion yuan, a year-on-year increase of + 18.48%.
Comments:
The intelligent electrical lighting business grew beautifully, and the cost of raw materials disturbed Q4 profit. From the perspective of single quarter, the company's Q4 single quarter revenue was 3.372 billion yuan, a year-on-year increase of + 16.13%, the net profit attributable to the parent was 574 million yuan, a year-on-year increase of - 19.65%, and the net profit attributable to the parent after deduction was 537 million yuan, a year-on-year decrease of - 20.07%. The decline of profit side was mainly due to the weakening of hedging effect due to the continuous high operation of raw material cost. In terms of business, the company's electrical connection / intelligent electrical lighting / digital accessories products achieved an operating revenue of RMB 6.413 billion / 55.51/373 million respectively in 2021, with a year-on-year increase of + 15.58% / + 36.90% / - 10.79% respectively. Among them, the growth rate of intelligent electrical lighting products is beautiful. Specifically, wall switch socket / LED lighting / other and intelligent ecological products are + 29.55% / + 38.53% / + 139.56% respectively.
Affected by the cost of raw materials, the gross profit margin declined, and the effective net profit margin of expense control remained stable. In the second half of the year, the company's gross profit rate rose to -0.57% to -1.0% in the second half of the year, which was further affected by the company's raw material cost and management fee structure, but the year-on-year increase rate of - 35.02% to -0.0% in the second half of the year, which was further driven by the year-on-year increase in the company's gross profit rate of -1.07% to -0.57% in the second half of the year, The decline in net profit margin was less than that in gross profit margin, and the level of net profit margin remained basically stable.
Hardware / decoration / digital / e-commerce channels are coordinated and complementary, and the b-end channel is growing rapidly. The company has established two marketing systems: TOC and tob. Among them, the C-end decoration channel has successfully developed more than 18000 terminal outlets; The development of e-commerce channels was smooth, and the annual sales revenue was + 31.82% year-on-year, of which the market share of converter and wall switch socket remained the first. In terms of b-end channels, the company actively develops the business of decoration enterprises, engineering projects and real estate hardbound houses. In terms of home decoration business, the company has established solid cooperation with more than 120 national and regional well-known decoration enterprises and platforms such as shell, and the outlets of decoration enterprises cover more than 10000. The annual b-end channel sales revenue was + 175.20% year-on-year.
Investment suggestion: category development and channel construction should be carried out at the same time, and the scale effect should be released. The profit can be improved by superposition of price increase and landing. We maintain the profit forecast. It is estimated that the net profit attributable to the parent company from 2022 to 2024 will be RMB 3.4 billion / 4.60 billion respectively, corresponding to the current market value PE of 22 / 19 / 16x respectively, maintaining the "buy" rating.
Risk tip: the expansion of new business is less than expected, the real estate market fluctuates, and the price of raw materials fluctuates
