\u3000\u30 Xuchang Ketop Testing Research Institute Co.Ltd(003008) 94 Marssenger Kitchenware Co.Ltd(300894) )
Event: on April 14, 2022, Marssenger Kitchenware Co.Ltd(300894) issued the 2021 annual report. In 2021, the company realized an operating revenue of 2.319 billion yuan, a year-on-year increase of + 43.65%; The net profit attributable to the parent company was 376 million yuan, a year-on-year increase of + 36.53%. Q4 company achieved an operating revenue of 721 million yuan, a year-on-year increase of + 18.29%; The net profit attributable to the parent company was 102 million yuan, a year-on-year increase of – 14.43%. It is proposed to pay a cash dividend of RMB 3 per 10 shares, with a dividend rate of 32.34% and a dividend rate of 0.85%.
The annual revenue increased rapidly and the market share increased rapidly. The company’s annual revenue increased sharply in 21 years, and the growth rate was still about 5 percentage points higher than that in 19 years. In terms of products, the company’s revenue of integrated stove products in 21 years was 2.039 billion yuan, a year-on-year increase of + 45.33%, accounting for about 90% of the total revenue; The revenue of sink and dishwasher products was 132 million yuan, a year-on-year increase of + 24.53%. In the 21st year, the integrated stove industry continued to maintain a high growth rate, while the Marssenger Kitchenware Co.Ltd(300894) growth rate was significantly higher than the industry average, and the market share continued to rise. According to industry online, the share of Marssenger Kitchenware Co.Ltd(300894) city in the whole year of 21 was + 1.5pct year-on-year, especially highlighting the company’s ability and toughness under the market background of significantly intensified industry competition. In addition, in the past 21 years, the company has continuously promoted the construction of online and offline channels, consolidated its existing advantages and developed steadily online. For seven consecutive years, the online sales volume has ranked first in the integrated stove industry, and the online share has increased to 23.4%, leading the second place by 12.1%; More than 200 offline distributors have been added, and about 2000 distribution stores have been established in total.
The profitability has declined due to the impact of raw materials, and the cost rate structure has been optimized. The gross profit margin in 2021 was 46.11%, with a year-on-year increase of -5.47pct; The net interest rate was 16.16%, year-on-year -0.89pct. Q4 gross profit margin was 42.98%, year-on-year -10.40pct; The net interest rate was 14.12%, with a year-on-year increase of -5.51pct. We estimate that the gross profit margin of Q4 is about 2 percentage points affected by the change of accounting standards, and the decline of profit margin is mainly affected by the sharp rise of raw material costs in 21 years. From the perspective of expense rate, various expense rates have been optimized in 21 years: without considering the change of caliber, the annual sales, management and R & D expense rates are divided into 21.84%, 3.73 and 3.19%, respectively -3.94, – 0.86 and -0.41pct year-on-year; Q4 sales, management and R & D expense rates were divided into 21.32, 3.08 and 2.80%, respectively -2.59, – 1.35 and -0.29pct year-on-year.
The operating capacity was significantly improved and the operating cash flow was significantly improved. 1) In 21 years, the company’s cash + other current assets totaled 1.006 billion yuan, a year-on-year increase of – 10.37%; Contract liabilities + other current liabilities totaled 263 million yuan, a year-on-year increase of + 65.69%, reflecting that there will be considerable income to be released in the future; Notes and accounts receivable totaled 73 million yuan, a year-on-year increase of + 1.95%; In order to cope with the rise of raw materials, the company properly prepared goods in advance. The inventory at the end of 21 was 239 million yuan, a year-on-year increase of + 13.46%. 2) From the perspective of turnover, the company’s inventory turnover days were -11.57 days and accounts receivable turnover days were -2.78 days year-on-year, which were significantly improved. 3) The net operating cash flow of the company in the past 20 years was 607 million yuan, a year-on-year increase of + 42.25%; Q4 net operating cash flow was 315 million, a year-on-year increase of + 48.44%.
Issuing convertible bonds to accelerate the landing of production capacity. In 2012, Q1 company issued the prospectus of convertible bonds, and planned to issue convertible bonds to unspecified objects. The total amount of funds raised will not exceed 604 million yuan, which will be used to invest in the construction of intelligent kitchen power production base. The project will form the production capacity of 120000 integrated stoves, 100000 dishwashers, 50000 gas water heaters and 20000 kitchen supporting appliances. We believe that the investment and construction of the project will further expand the company’s production capacity, strengthen the company’s “kitchen system” and develop its competitive advantage, which is conducive to the continuous improvement of the company’s sales volume and market share, and the company’s profitability will be further optimized under the scale effect.
Profit forecast: the integrated stove industry has a broad long-term market space. The company seizes the market development opportunity, actively invests in brand publicity, R & D, channel construction, capacity breakthrough and other aspects, continuously improves its market position and has strong long-term competitiveness. We estimate that the company’s operating revenue in 22-24 years will be RMB 3.131/4.040/4.945 billion respectively, with a year-on-year increase of + 35.1% / + 29.0% / + 22.4% respectively; The net profit attributable to the parent company was 507 / 652 / 791 million yuan, with a year-on-year increase of + 34.9% / + 28.7% / + 21.3% respectively, corresponding to 28.03/21.78/17.95 times of PE.
Risk factors: the price of raw materials continues to rise, the competition in the integrated stove industry intensifies, the policy changes in the downstream real estate industry, the company’s new product launch is less than expected, the company’s channel development is less than expected, and the epidemic situation in China is repeated.
