\u3000\u3 China Vanke Co.Ltd(000002) 959 Bear Electric Appliance Co.Ltd(002959) )
Key investment points:
Performance summary: the company released the annual report of 2021, realizing an operating revenue of 3.606 billion yuan, a year-on-year increase of – 1.46%; The operating cost was 2.424 billion yuan, a year-on-year increase of – 1.98%. The net profit attributable to the parent company was 283 million yuan, a year-on-year increase of – 33.81%. The company achieved a revenue of 1.24 billion yuan in Q4 of 2021, 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 increase of – 11.1%.
The company performed well in the fourth quarter and adhered to product diversification and Innovation: Quarterly, the revenue of Q1 / Q2 / Q3 / Q4 company was 9.1/7.3/7.3/1.24 billion yuan, with a year-on-year increase of + 23% / – 26% / – 6% / + 7% respectively. The decline in q2-q3 revenue growth was mainly due to the high base and product price rise in the same period in 2020, which restrained some demand, and Q4 revenue growth gradually recovered. It was mainly due to the demand for optional consumer goods such as dryers, humidifiers and heaters driven by seasons. In terms of products, the revenue of kitchen / living / other small household appliances was 2.933 billion yuan, 4.07 billion yuan and 228 million yuan respectively, with a year-on-year increase of – 5.9% / + 1.5% / + 96.55% respectively. In 2020, the sales volume of kitchen small household appliances benefited from the “home economy”, which increased significantly. After most of the “from scratch” demand in 21 years has been met, the sales volume declined. Other small household appliances mainly include personal care and mother and baby small appliances, which increased rapidly. The company is committed to the innovation of new small household appliances, In the future, personal care and mother and baby small household appliances will also become a new track cultivated by the company. In recent years, the online and offline sales channels of the company have been more and more concentrated, and the online and offline sales channels account for a large proportion of the main sales revenue of the company. In recent years, the online and offline sales channels of the company have been developed, and the online and offline sales channels account for a large proportion of the main sales revenue of the company.
The gross profit margin increased slightly and the sales expenses increased: the company’s comprehensive gross profit margin in 21 years was 32.78%, with a year-on-year increase of +0.35%. The continuous rise in the price of raw materials had a certain impact on the company’s gross profit margin, but the company actively sought change, and reduced the pressure of raw material price increase by optimizing the product structure, expanding new channels and increasing the proportion of self support. On the expense side, the sales / management / R & D rate increased from + 3.3 / + 0.3 / + 0.7pct to 15.3% / 3.6% / 3.6% year-on-year. The increase in sales expenses was mainly due to the increase in the proportion of self operated and the decrease in the proportion of distribution in this period.
Investment suggestion: Bear Electric Appliance Co.Ltd(002959) while consolidating the advantages of small kitchen appliances, actively expand the business of living and personal care small appliances, improve the construction of online channels and develop offline sales channels. Although the overall competition in the small appliance market is fierce, there are many kinds of creative small appliances and great market potential. We believe that the company still has room for growth in the future through the research and development of innovative products. It is estimated that the company will realize an operating revenue of RMB 3.943/43.36/4.829 billion from 2022 to 2024, a net profit attributable to the parent of RMB 366/4.05/472 million, and EPS of RMB 2.34/2.59/3.01/share respectively. The company will be given a “recommended” rating of 22-24 times PE in 2022, corresponding to a reasonable price range of RMB 51.48-56.16.
Risk tip: the price of raw materials fluctuates and the market competition is fierce.
