\u3000\u3 Shengda Resources Co.Ltd(000603) 195 Gongniu Group Co.Ltd(603195) )
Key investment points
Performance summary: the company released] the annual report of 2021, and achieved revenue of 12.38 billion yuan (+ 23.2%) in 2021; The net profit attributable to the parent company was 2.78 billion yuan (+ 20.2%); The net profit deducted from non parent company was 2.63 billion yuan (+ 18.5%). Among them, 21q4 company achieved an operating revenue of 3.37 billion yuan (+ 16.1%); The net profit attributable to the parent company was 570 million yuan (- 19.7%).
Affected by the rise of raw materials, the gross profit margin fell, the cost control advantage was prominent, and the profitability was stable. Affected by the sharp rise in raw materials, the company's overall gross profit margin in 2021 was 37% (- 3.2pp), of which the gross profit margin in Q4 was 32.3%, down 9.3pp year-on-year, mainly due to the impact of the rise in raw materials on profits after the expiration of the company's raw material hedging. In terms of products, the gross profit margin of electrical connection products is 33% (- 6.2pp), that of intelligent electrical lighting products is 42.0% (- 1.1pp), and that of digital accessories products is 27.0% (+ 4.6pp). In terms of expense ratio, the overall rate of the company in 2021 was 11.1% (- 2PP), of which the sales / management / R & D / financial expense ratio was 4.5% / 3.5% / 3.8% / 0.7% respectively, with a year-on-year increase of - 0.6 / - 0.8 / - 0.2 / - 0.4 respectively. In other income, the government subsidy increased by 260 million. Under the combination, the net interest rate of the company reached 22.5%, with a year-on-year decrease of 0.6pp, and the profitability remained stable.
Fist products grew steadily, and new categories increased rapidly. In terms of products, the company's converter products achieved a revenue of 6.41 billion yuan in 2021, a year-on-year increase of 15.6%, accounting for 51.8% (a decrease of 3.4 percentage points). As the core business of the company, electrical connection products maintain steady growth relying on brand advantages and hardware channel advantages. Intelligent electrical lighting products achieved a revenue of 5.55 billion yuan, a year-on-year increase of 36.9%, and the proportion of revenue increased from 40.3% to 44.8%, mainly because the company increased the expansion of decoration channels to drive the volume of new products. Among them, the wall opening business increased by 29.6%, and the LED lighting business increased by 38.5%. In terms of new products, the company incubated and launched intelligent ecological products such as Yuba, intelligent door lock, intelligent clothes dryer and intelligent curtain machine, with a year-on-year increase of 139.6% in revenue in 2021. In 2021, the company's digital accessories products achieved a revenue of 370 million yuan, a year-on-year decrease of 10.8%, which was mainly affected by the new product launch cycle and the change of Wuxi Online Offline Communication Information Technology Co.Ltd(300959) flow, and the business scale of digital accessories products shrank accordingly.
Comprehensively promote the integration of channels and lean marketing, and further accelerate the expansion of all channels. Focusing on the change of consumers' purchase demand, the company continued to promote marketing reform, further established the two marketing systems of TOC and tob, and defined the collaborative and complementary strategy of offline hardware channels, decoration channels, digital channels and online e-commerce channels. Under the trend of b-end channel in the industry, the company has deeply cultivated the head customers of b-end and established solid cooperation with more than 120 national and regional well-known decoration companies and platforms such as Shengdu, Yezhifeng and shell. The outlets of decoration enterprises cover more than 10000. In 2021, the sales revenue of b-end channel increased by 175.2% year-on-year. Online e-commerce channels and overseas online channels are also constantly embracing new trends and exploring new platforms. The proportion of the company's overseas revenue has increased from 1.9% to 2.3%.
Profit forecast and investment suggestions. It is estimated that the company's EPS from 2022 to 2024 will be 5.44 yuan, 6.32 yuan and 7.32 yuan respectively, and the corresponding PE will be 23 times, 20 times and 17 times respectively. Considering the firm traditional business barriers and bright growth of new products, the second growth curve is gradually cultivated and the "hold" rating is maintained.
Risk tip: the risk of sharp fluctuations in raw material prices and intensified market competition.
