\u3000\u30 Xuchang Ketop Testing Research Institute Co.Ltd(003008) 94 Marssenger Kitchenware Co.Ltd(300894) )
Event: Marssenger Kitchenware Co.Ltd(300894) released the annual report of 2021. In 2021, the company achieved 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%; In 2021q4, the revenue in a single quarter was 721 million yuan, a year-on-year increase of 18.29%, and the net profit attributable to the parent company was 102 million yuan, a year-on-year decrease of 14.43%. The company distributed a cash dividend of RMB 3 (including tax) to all shareholders for every 10 shares, with a total cash dividend of RMB 122 million.
The company’s annual revenue growth exceeded that of the industry. In 2021, the company’s revenue increased by 43.65% year-on-year, of which Q4 increased by 18.29% year-on-year, and the growth rate slowed down month on month. In terms of products, the revenue of integrated stoves is the main source of revenue of the company. In 2021, the operating revenue of integrated stoves was 2.039 billion yuan, with a year-on-year increase of 45.33%, higher than that of other businesses, and the revenue accounted for 87.92%. In terms of growth rate, the company’s integrated stoves performed better than the industry. According to the data of ovicloud, the retail sales of integrated stoves increased by 41% year-on-year in 2021. The company’s revenue from washing products and other products increased by 24.53% and 40.50% year-on-year, accounting for 5.7% and 6.38% respectively. From the perspective of sales model, the proportion of the company’s online channel sales increased. In 2021, the amount of online sales was 969 million yuan, an increase of 53.03% year-on-year, and the proportion of sales increased by 2.56 PCT to 41.80%. According to ovicloud, the market share of the company’s online sales in 2021 was 23.35%, ranking first in the industry.
The cost rate was optimized and the net interest rate decreased slightly. In 2021, the gross profit margin of the company’s sales was 46.11%, a year-on-year decrease of 5.47pct, mainly due to the sharp rise in the price of raw materials and the adjustment of accounting standards. The gross profit margin of integrated stove products was 46.37%, down 6.29pct from the same period last year. In 2021, the company’s sales, management, finance and R & D expenses changed by 25.68% / 37.84% / – 161.06% / 28.14% year-on-year, and the expense rates were 21.84% / 3.73% / – 0.81% / 3.19% respectively, with a year-on-year change of -3.13 / – 0.16 / – 0.36 / – 0.39pct. We believe that the main reason for the large change in the sales expense rate is the adjustment of accounting standards. The reason for the large change in financial expenses is the increase in interest income caused by the increase in the company’s bank deposit balance. During the reporting period, the company’s interest income was 20.47 million yuan, a year-on-year increase of 109.5%. Overall, the net interest rate of the company in 2021 was 16.16%, a year-on-year decrease of 0.89pct.
Online and offline “two wheel drive” ensures the sustainable development of business. The company implements the channel diversification strategy, vigorously promotes the laying of distribution stores nationwide, and continues to maintain the advantages of e-commerce platform. In terms of offline channels, as of the end of the reporting period, the company has established about 2000 terminal distribution stores, and has achieved full coverage in key cities. The company makes continuous efforts online through e-commerce network channels. Taking full advantage of the high traffic advantages of tmall, jd.com and Suning, the company continues to expand its dominant position in the e-commerce channel industry through Wuxi Online Offline Communication Information Technology Co.Ltd(300959) mutual drainage. In 2021, the company continued to increase the construction of emerging channels such as engineering channels, packaging channels, Ka channels and sinking channels, providing a strong driving force for the company’s performance growth. Among them, the sinking channels actively arranged by the company include Jingdong store, tmall premium products, Suning retail cloud, etc.
Issuing convertible bonds to further enhance production capacity. The issue of convertible bonds issued by the company to unspecified objects in 2021 has been deliberated by the municipal Party Committee on the gem of Shenzhen Stock Exchange. The total amount of funds raised this time does not exceed 604 million yuan, accounting for 43.92% of the company’s net assets at the end of September 2021. The raised funds will be used for the construction project of intelligent electrical appliance production base and the expansion of the production capacity of integrated stoves, dishwashers, gas water heaters and kitchen supporting appliances. It will form an annual production capacity of 120000 integrated stoves, 100000 dishwashers, 50000 gas water heaters and 20000 kitchen supporting appliances, meet the company’s increasing production capacity and sales demand year by year, and continuously enhance the company’s profitability.
Investment advice. In the context of the rapid growth of the integrated stove industry, we believe that the company has certain advantages in products, channels and marketing, and its performance is expected to achieve super industry growth. It is estimated that the net profit attributable to the parent company from 2022 to 2024 will be 497, 666 and 779 million yuan, and the corresponding EPS will be 1.22, 1.64 and 1.92 yuan, maintaining the “recommended” rating.
Risk warning. The risk of intensified industry competition, the risk of price changes of raw materials, and the risk that the penetration rate is lower than expected.
