\u3000\u3 Bohai Water Industry Co.Ltd(000605) 336 Zhejiang Sanfer Electric Co.Ltd(605336) )
Event:
On April 13, 2022, Zhejiang Sanfer Electric Co.Ltd(605336) released the annual report of 2021. In 2021, the company realized an operating revenue of 978 million yuan (+ 36.93%); The net profit attributable to the parent company was 247 million yuan (+ 26.95%). In 2021q4, the company achieved a revenue of 291 million yuan (+ 18.73%), and a net profit attributable to the parent company of 63 million yuan (- 9.85%).
The volume and price of integrated stove business increased, and the revenue increased rapidly in 2021q4. 1) Quarter by quarter: the company achieved a revenue of 291 million yuan (+ 18.73%) in the single quarter of 2021q4, with a rapid growth mainly due to the expansion of the company’s distribution channels and the help of popular products. 2) In terms of business: in 2021, the company’s integrated stove product revenue was 904 million yuan (+ 34.58%), accounting for 92.44% of the total revenue, mainly due to the double increase in the volume and price of the company’s integrated stove business due to the introduction of a variety of medium and high-end products. According to the data of ovicloud, in 2021, the online sales volume of the company’s integrated stove reached 35600 (+ 42.50%), and the average price was 10645 yuan (+ 22.34%); The revenue of other kitchen supplies was 48 million yuan (+ 35.47%), accounting for 4.91% of the total revenue, achieving a high growth rate.
Rising raw material prices put pressure on profitability. 1) Gross profit margin: the gross profit margin of 2021q4 company is 45.24% (- 3.56pct), mainly due to the rise in the price of raw materials. 2) Net profit margin: the net profit margin of 2021q4 company is 21.51% (-6.82pct), and the decrease of net profit margin is greater than the gross profit margin. The main reason is that the company no longer enjoys the relief of social security policies related to the epidemic, resulting in the increase of management expenses. The rate of sales / management / R & D expenses in 2021q4 is 13.55% / 4.10% / 5.41% respectively, with a year-on-year decrease of -1.25 / + 2.64 / + 0.59pct respectively.
Deepen the diversified channel layout, and the big business plan helps the rapid development. 1) Offline channels: establish a “benchmarking club” to promote large businesses and empower small businesses. It is planned to build dealers’ terminal retail sales in provincial capital, prefecture level and county-level cities to reach 100 million, 50 million and 10 million respectively in the next three years, so as to help the development of the company; The company continues to expand the dealer model, adding and transforming more than 300 exclusive stores of shuaifeng’s fourth generation image stores and nearly 50 stores in the primary and secondary markets in 2021; 2) Online channel: through the independent establishment of JD e-commerce department and participation in the “spark” plan, carry out multi-dimensional cooperation with JD; 3) Home decoration channels: there are more than 700 home decoration cooperation outlets with Hunan Qiansi and other places; 4) Ka channel: enter Jingdong household appliances, Jingdong kitchen and bathroom, Jingdong five-star appliances, Suning.Com Co.Ltd(002024) and local Ka stores of household appliances; 5) Project Channel: regional projects in Henan, Jiangxi and Shandong have been completed successively.
Promote new products + expand categories at the same time, improve the product matrix, and gradually release the capacity of digital intelligent factory. 1) Product end: launch the intelligent integrated stove t6-8b. The product is the first integrated stove equipped with tmall fire shadow module, which can be used as a smart home control terminal; Continuously expand the categories horizontally, successively support a series of products such as sink, dishwasher and cabinet, and gradually promote the customization of the whole kitchen and the whole house. 2) Production side: the digital intelligent factory project will further release the production capacity of integrated stoves in 2022. At the same time, the “production line project of high-end kitchen supporting products” will also add some production capacity of dishwashers and cabinets.
The channel side continued to expand, superimposed the improvement of the product side and the release of production capacity at the production side, jointly driven the performance growth, covered for the first time, and was rated as “buy”. With the continuous layout of the company’s diversified channels and the gradual improvement of the product matrix, and with the continuous release of the production capacity of the smart factory, the company’s performance is expected to continue to grow rapidly, cover for the first time, and give a “buy” rating. We predict that the net profit attributable to the parent company from 2022 to 2024 will be 319 / 405 / 527 million yuan, corresponding to EPS of 2.25 / 2.85 / 3.71 yuan, and the current share price corresponding to PE of 10.95/8.64/6.63 yuan.
Risk tips: repeated covid-19 epidemic, fluctuations in the real estate market, fluctuations in the price of main raw materials, intensified competition in the integrated stove market, and less than expected new product research and development.
