\u3000\u3 Bohai Water Industry Co.Ltd(000605) 336 Zhejiang Sanfer Electric Co.Ltd(605336) )
In 2021, the company achieved a revenue of 978 million yuan, yoy + 36.93%, and a net profit attributable to the parent company of 247 million yuan, yoy + 26.95%; Among them, 21q4 achieved a revenue of 291 million yuan, yoy + 18.73%, and the net profit attributable to the parent company was 63 million yuan, yoy-9.85%.
Key points supporting rating
The industry boom was strengthened, and the annual revenue increased rapidly. According to the data of ovicloud, the market scale of integrated stoves in 2021 is 3.04 million units, yoy + 28%; The retail sales reached 25.6 billion yuan, yoy + 41%, and the industry maintained a high outlook. 1) On the product side, the proportion of steaming and baking independent and steaming and baking integrated series continues to increase. Among them, X1 Gemini series won the first sales volume on tmall / jd.com platform during the double 11. 2) On the channel side, based on the distribution channels, the company continued to promote the construction of diversified channels. In 2021, the company had nearly 1300 dealers and 1600 + sales terminals, including more than 300 new and transformed outlets. It actively established and introduced large dealers and improved the comprehensive service capacity of small dealers. The establishment of jd.com e-commerce department, the addition of jd.com self operated stores, and the participation in the “spark” plan have enabled tmall platform to continue its efforts. Tiktok, Jingdong, jitter, WeChat and other platforms for long live multi live broadcast, Amway grass to achieve sales promotion transformation, 2021 electricity providers C revenue growth of 16.84%. The company has comprehensively carried out diversified channel layout in home decoration channels, Ka channels and engineering channels, which will help the company increase.
The cost of raw materials rose and the cost input increased, putting pressure on the performance of 21q4. In 2021, the gross profit margin of the company was 46.24%, year-on-year -2.96 PCT, and the net profit margin was 25.22%, year-on-year -1.98 PCT. 21q4 gross profit margin was 45.24%, year-on-year -3.56pct, and net profit margin was 21.51%, year-on-year -6.82pct. Under the background of rising raw material prices, the company’s advertising expenses increased, the salary and depreciation expenses of management personnel increased, and the social security policy relief caused by the epidemic will no longer be enjoyed in 2021. 21q4’s sales expense / management expense / R & D expense ratio was 13.55% / 4.10% / 5.41% respectively, with a year-on-year increase of -1.25pct / + 2.63pct / + 0.59pct.
Valuation
The integrated stove industry is in the channel of rapid increase in penetration, the company’s new production capacity is gradually released, the product structure is continuously optimized, and the revenue is growing steadily; Considering the cost pressure of raw materials and the company’s expense side investment, we expect the company’s EPS to be 2.20 yuan / 2.79 yuan / 3.47 yuan respectively from 2022 to 2024, corresponding to the P / E ratio of 11.9 times / 9.4 times / 7.6 times, maintaining the buy rating.
Main risks of rating
Risk of single product structure; The risk of intensified market competition; Raw material price fluctuation risk, etc.
