\u3000\u3 China Vanke Co.Ltd(000002) 444 Hangzhou Great Star Industrial Co.Ltd(002444) )
The company issued the 2021 annual report. In 2021, the revenue was 10.92 billion yuan, a year-on-year increase of 27.80%; The net profit attributable to the parent company was 1.270 billion yuan, a year-on-year decrease of 5.93%. Among them, the revenue of 21q1 / Q2 / Q3 / Q4 was RMB 1.980 billion / 2.469 billion / 3.230 billion / 3.240 billion respectively, with a year-on-year change of + 49.94% / – 1.25% / + 31.56% / + 42.88%.
As the strategic focus of the company, cross-border e-commerce continued to maintain rapid growth, gradually launched the power tool product line, and the revenue scale exceeded US $100 million for the first time. The company has carried out large-scale innovation on power tools, especially lithium battery power tools, successfully developed a large number of cost-effective products, and put them into cross-border e-commerce channels for trial production and trial sales. In the online market, the company innovated and developed a 20V lithium battery platform and gradually launched a full range of power tool products.
By product line, in 2021, the sales revenue of the company’s hand tools business was 6.553 billion yuan, a year-on-year increase of 14.52%; The sales revenue of power tools business was 1.021 billion yuan, a year-on-year increase of 453.77%; The sales revenue of laser measuring instruments was 889 million yuan, a year-on-year increase of 73.13%; The sales revenue of storage box business was 2.371 billion yuan, a year-on-year increase of 152.36%.
In terms of sub brands, the company’s own brand revenue was 3.837 billion yuan, a year-on-year increase of 46.06%; The company’s ODM business revenue was 7.026 billion yuan, a year-on-year increase of 19.58%.
In terms of regions, the income of the Americas was 7.535 billion yuan, a year-on-year increase of 23.76%; European revenue was 2.399 billion yuan, a year-on-year increase of 50.17%.
Gross profit margin: in 2021, the annual gross profit margin was 25.12%, a year-on-year decrease of 5.51pcts. Among them, the gross profit margins of 21q1 / Q2 / Q3 / Q4 were 30.00% / 28.62% / 27.48% / 17.13% respectively, with a year-on-year decrease of 4.36pcts/5.07pcts/7.42pcts/3.35pcts.
Expense ratio: the company’s sales / management / R & D / financial expense ratio in 2021 was 5.43% / 6.28% / 2.84% / 0.59% respectively, with a year-on-year change of + 0.07pcts / + 0.42pcts / – 0.03pcts / -0.74pcts.
Net profit attributable to parent: in 2021, the net profit attributable to parent was 1.270 billion yuan, a year-on-year decrease of 5.93%, and the net interest rate attributable to parent was 11.63%, a year-on-year decrease of 4.17 PCTs; The net profit deducted from non parent company was 1.074 billion yuan, a year-on-year decrease of 12.98%, and the net interest rate deducted from non parent company was 9.83%, a year-on-year decrease of 4.61pcts.
Cash flow: the cash flow from operating activities in 2021 was 19 million yuan, compared with 771 million yuan in the same period last year; The cash flow from investment activities was -1.213 billion yuan, compared with -399 million yuan in the same period last year.
Profit forecast and Valuation: at present, the company faces great pressure from exchange rate changes, raw materials and shipping, resulting in the low net interest rate in 2021, especially 2021q4. We expect that with the change of the external environment, the net interest rate from 2022 to 2024 will gradually improve to the normal level around 2019. From 2022 to 2023, the company’s operating revenue is expected to be 12.504 billion yuan / 13.744 billion yuan, and the net profit is expected to be 1.796 billion yuan / 2.033 billion yuan. Due to changes in the global external macro environment, the company’s operating revenue is expected to be 13.104 billion yuan / 15.724 billion yuan / 18.869 billion yuan, and the net profit is expected to be 1.555 billion yuan / 19.98 billion yuan / 2.582 billion yuan, corresponding to the current market value of 11 / 8 / 6 XPE.
Risk tips: exchange rate fluctuation risk, raw material price fluctuation risk, shipping capacity risk, the expansion of new electric tools is less than expected, and the performance after M & A is less than expected
