\u3000\u3 China Vanke Co.Ltd(000002) 084 Guangzhou Seagull Kitchen And Bath Products Co.Ltd(002084) )
Event: on April 15, Guangzhou Seagull Kitchen And Bath Products Co.Ltd(002084) issued the 2021 annual report. In 2021, the company achieved an operating revenue of 4.126 billion yuan, a year-on-year increase of 23.52%; The net profit attributable to the parent company was 86 million yuan, a year-on-year decrease of 43.75%; The net profit attributable to the parent company after deducting non-profit was -06 million yuan, a year-on-year decrease of 105.42%. In 2021q4, the company realized an operating revenue of 1.072 billion yuan, a year-on-year increase of 4.86%; Net profit attributable to parent company -30 million yuan; The net profit attributable to the parent company after deduction of non-profit is – 97 million yuan.
The “double cycle” strategy continued to be promoted, and the growth rate of hardware leading and ceramic tile categories was beautiful
In 2021, the company’s traditional core categories achieved high growth, and the revenue of hardware leading products reached 2.547 billion yuan, a year-on-year increase of 28.92%, accounting for 61.74%; The income of ceramic tile products was 809 million yuan, a year-on-year increase of 63.11%, accounting for 19.61%. Specifically, 1) the export orders of leading hardware products continued to be full, mainly due to the better consumption of household products in European and American countries during the epidemic. One belt, one road, is to continue to push forward the “double cycle” plan, relying on the growth base of export business to put the new capacity into the domestic market and the international market in the same direction, so as to reduce the impact of Sino US trade friction. In the past 21 years, the company continued to increase the investment in Vietnam faucet manufacturing center, supported the construction process of the new Patton factory and the upgrading and reconstruction project of the original idle workshop in Datong Nai, and has completed the first cabinet shipment at present. 2) In terms of ceramic tile business, champion tiles performed strongly, with a revenue of 547 million yuan in 21 years, a year-on-year increase of 63.98%. Seagull champion optimized and upgraded the manufacturing plant and equipment, helped the champion’s ceramic tile products achieve higher quality and more complete specifications, and further met the market demand of medium and high-end ceramic tiles. Suzhou’s new Hg2 large rock slab intelligent production line will be fully launched and put into operation, which is conducive to optimizing product structure and expanding production capacity.
Forward looking layout of the packaged bathroom industry and rapid development of smart home business
The company continued to upgrade its transformation strategy, and continuously expanded the scope of the packaged sanitary ware industry chain. By successively acquiring four-dimensional sanitary ware, Suzhou Youchaoshi, seagull furunda, yakopol, Guangdong Youchaoshi, seagull champion and Datong Nai, the company vigorously developed its own brand business of customized packaged sanitary ware, cabinet and smart home. 1) In terms of the whole decoration business, the operating revenue was 599644 million yuan in 2021. It has two brands of Chaoshi and furunda, and four intelligent manufacturing bases in Qingdao, Suzhou, Zhuhai and Jiaxing. The product types cover SMC, color steel sector, ceramic tile and other types. In the future, it will be expanded to residential, TOC, EPC, commercial office and other track businesses. 2) In terms of smart home, smart home products achieved an operating revenue of 179 million yuan in 21 years, with a year-on-year increase of 46.60%. In the 21st year, Zhuhai Edison, the holding subsidiary, issued 3395700 ordinary shares and raised 15.62 million yuan to increase investment in R & D and production. The development of smart home business is expected to achieve a breakthrough.
Short term profitability under pressure, “three refinement and two modernizations” strategy to strengthen expense management
In 2021, the company’s comprehensive gross profit margin was 18.25%, down 5.66 PCT year-on-year, mainly due to the rise in the prices of raw materials such as copper and zinc. At present, the traditional categories with low gross profit margin still account for a relatively high proportion. With the gradual promotion of the layout of smart home and decoration channels, the gross profit margin is expected to improve. In 2021, the company’s net profit margin was 1.06%, down 4.09pct year-on-year. The decline in net profit margin was mainly due to the decline in the company’s gross profit margin and the company’s provision for bad debts of 107 million yuan for Evergrande’s accounts receivable and bills. In terms of expenses during the period, the company continued to promote the “three refinements and two modernizations” strategy (i.e. streamlining organization, streamlining personnel, lean production, informatization and industrialization), and achieved remarkable results in cost control. During the 21 years, the cost rate was 14.69%, a year-on-year decrease of 3.00pct, and the sales / management / R & D / financial cost rates were 5.00%/5.25%/3.31%/1.13%, respectively -0.94/-0.83/-0.06/-1.17pct.
Investment suggestion: through prospective acquisition, the company actively promotes the layout of the whole industrial chain with assembled kitchen and bathroom as the core, and continues to build China’s international double cycle development pattern. With the acceleration of digital transformation, capacity expansion and full category coordination, the company’s revenue scale and profitability are expected to gradually improve. We estimate that the operating revenue of Guangzhou Seagull Kitchen And Bath Products Co.Ltd(002084) 20222024 will be RMB 5.072 billion, RMB 6.068 billion and RMB 7.122 billion, with a year-on-year increase of 22.94%, 19.64% and 17.37%; The net profit attributable to the parent company was RMB 242 million, RMB 337 million and RMB 421 million, with a year-on-year increase of 182.65%, 39.26% and 24.92%. The corresponding PE was 11.7x, 8.4x and 6.7x, and the investment rating of Buy-A was given.
Risk warning: repeated epidemic risk; The expansion of packaged sanitary ware is less than the expected risk; Risk of rising raw material prices.
