\u3000\u3 Bohai Water Industry Co.Ltd(000605) 555 Ningbo Dechang Electrical Machinery Made Co.Ltd(605555) )
The month on month improvement trend of Q4 net interest rate has been shown, and the large volume of EPS brushless motor can be expected to maintain the "buy" rating
In 2021, the company's revenue was 2.84 billion yuan (+ 37.6%), and the net profit attributable to the parent company was 300 million yuan (- 1.1%). Among them, Q4's revenue was 620 million yuan (- 7.3%), and the net profit attributable to the parent company was 80 million yuan (- 27.0%). In 2021, the company is mainly affected by raw materials and exchange rate. We believe that the price of raw materials has tended to fall. With the steady growth of the main business of vacuum cleaner + customers, the continuous expansion of new categories of small household appliances and the mass production of high gross margin automobile motors, the company is expected to maintain rapid growth of revenue and continuous improvement of net profit margin. We maintain the profit forecast for 20222023 and add the profit forecast for 2024. It is estimated that the net profit attributable to the parent company in 20222024 will be 409 / 602 / 725 million yuan, corresponding to EPS of 2.15/3.17/3.82 yuan respectively. The current share price corresponds to PE of 13.6/9.3/7.7 times, maintaining the "buy" rating.
The floor washing machine drives the steady growth of the main OEM industry of vacuum cleaner, and the large volume of diversified small household appliances and automobile motors can be expected
(1) environmental household appliances: in 2021, the business revenue of floor washing machine was 1.22 billion (+ 40.3%), and the business revenue of vacuum cleaner dryer was 950 million yuan (+ 29.8%). The new business of garden tools expanded smoothly and is expected to usher in mass production in 2022. (2) The business income of hair care appliances was 440 million yuan (+ 25.2%), and successfully expanded new categories such as humidifiers, contributing to the growth of income. (3) EPS brushless motor business income is RMB 04 million. In 2021, it cooperated with sever, ZF, Nextel and other leaders of EPS Tier1 system to carry out the research and development of a variety of motor samples. At the same time, it deeply connected with SAIC, Chery, great wall, Chang'an, Byd Company Limited(002594) and other independent brand vehicle enterprises, and realized 13 model project fixed points. It is expected to realize the cumulative sales volume of 23 million units in the future. According to the average price of RMB 300 per unit, the sales volume is expected to reach 690 million; At present, there are still more than 30 models of projects to promote, and the volume of automobile motor business can be expected.
The gross profit margin is under pressure due to the influence of raw materials and exchange rate, and the improvement trend of net profit margin in 2021q4 gradually appears
The gross profit margin in 2021 was 19.3% (- 7.7pcts), which was mainly affected by raw materials and exchange rate fluctuations. The gross profit margin in 2021q4 was 23.8%, up 7.5pcts month on month. The price of raw materials tended to fall. Driven by high gross profit margin businesses such as automobile motors and floor washers, the improvement trend of gross profit margin will continue. In 2021, the sales / management / R & D / financial expense ratio was - 0.0 / + 0.6 / - 0.1 / - 2.7pct year-on-year respectively, and the overall expense ratio decreased by 2.2 PCTs during the period, which was mainly driven by the decrease of exchange profit and loss and interest expenditure in financial expenses and the increase of interest income. In 2021, the net interest rate was 10.6% (- 4.1pcts), and the net interest rate of 2021q4 was 13.2%, up 5.1pcts month on month. The improvement trend is expected to continue.
Risk tips: changes in tariff policies; Price fluctuation of raw materials; EPS motor business development was less than expected.
