\u3000\u3 Bohai Water Industry Co.Ltd(000605) 336 Zhejiang Sanfer Electric Co.Ltd(605336) )
Event: Zhejiang Sanfer Electric Co.Ltd(605336) published the annual report of 2021. The company achieved revenue of 980 million yuan in 2021, yoy + 36.9%; Achieved a performance of 250 million yuan, yoy + 27.0%. Converted into the company's Q4 single quarter revenue of 290 million yuan, yoy + 18.7%; Achieved a performance of 62.613 million yuan, yoy-9.8%. We believe that with the launch of high-end new products in the future, the profitability of the company is expected to be repaired.
The sales of integrated stoves increased rapidly: according to the industrial research, the sales volume of shuaifeng integrated stoves in 2021 was about 180000 units, with a year-on-year increase of about 28%. Combined with the data of Aowei cloud network, the market share of the sales volume of integrated stoves in 2021 was 6%, which was basically the same year-on-year. From the perspective of product structure, we believe that the sales of shuaifeng integrated steaming and baking stove and independent integrated steaming and baking stove account for 60% in 2021. Throughout the year, the ex factory price of shuaifeng integrated stove in 2021 is 5021 yuan / set, yoy + 5.5%. According to the announcement, in 2022, shuaifeng will also release a variety of integrated steaming and baking stoves and independent integrated steaming and baking stoves. We believe that the company's development of high-end categories is conducive to establishing brand image and improving profitability.
Main revenue contributed by dealer channels: according to the main channels, the channel revenue of shuaifeng dealers in 2021 was 890 million yuan, yoy + 37.7%, accounting for about 91% of the total revenue; The e-commerce channel revenue was 65.782 million yuan, yoy + 16.8%, accounting for about 7% of the total revenue. In 2021, the number of dealers and terminal stores of the company increased, boosting offline sales.
Expand the number of stores and improve the operation level: in 2021, shuaifeng added and transformed more than 300 outlets dominated by specialty stores. By the end of 2021, the company had nearly 1300 dealers and more than 1600 sales terminals. According to the announcement, in 2022, the company plans to add and transform 300 image stores to improve the operation quality of terminal stores.
Decline in Q4 net profit margin: according to the announcement, the net profit margin of shuaifeng Q4 was 21.5%, with a year-on-year increase of -6.8pct, mainly due to: 1) the rise of raw material prices and the company's Q4 gross profit margin was -3.6pct year-on-year; 2) Due to the increase of management salary and depreciation expenses, and the company no longer enjoys the social security policy relief caused by the epidemic, the Q4 management expense rate is + 2.6pct year-on-year; 3) R & D investment increased, and Q4 R & D expense rate was + 0.6pct year-on-year. Looking forward to the next few quarters, considering that shuaifeng will launch a variety of medium and high-end integrated stoves, we expect the profitability of the company to improve.
Investment suggestion: Zhejiang Sanfer Electric Co.Ltd(605336) is an advantageous brand of integrated stoves in China. The product structure is gradually optimized, and the company is also expanding its new products. We expect that shuaifeng's EPS from 2022 to 2023 will be 1.58/2.00 yuan respectively (considering the conversion of shares), and the six-month target price will be 31.60 yuan, corresponding to 20 times PE in 2022, maintaining the investment rating of buy-a.
Risk tip: the price of raw materials has risen sharply and the competition pattern has deteriorated
