\u3000\u30 China Baoan Group Co.Ltd(000009) 21 Hisense Home Appliances Group Co.Ltd(000921) )
In the first quarter of 2022, both revenue and profit achieved steady and high growth. The company's 2022q1 revenue +31% to 18.3 billion yuan, the parent company's net profit +22% to 270Million yuan, and the deduction of non profit +39% to 190million yuan. Revenue continued the rapid growth since the fourth quarter, and profitability was significantly improved compared with 2021q4.
In the household appliance business, it is expected that the speed of air conditioning and ice washing will be increased, but the overall situation is still stable. Referring to the monitoring data of domestic and foreign shipments and domestic sales terminals, it is expected that the sales of household air conditioners will achieve a growth rate of 35% + in 2022q1, of which the growth rate of export sales is expected to be greater than that of domestic sales, or thanks to the company's active acquisition of export orders in 2021, the strength of domestic marketing and the synergy of the central air force; On the other hand, due to the relatively high base, the revenue growth in 2022q1 is expected to slow down to the single digit level according to the shipment and terminal data; The growth rate of central air conditioner is expected to be slower than that of household air conditioner, but it is still in a high growth state. According to the change of share, it is inferred that the growth rate of Hisense brand is higher than that of Hitachi brand. New energy is also expected to continue the growth trend since Q4 according to the backward promotion of income growth. In 2022q1, under the pressure of base, the company still achieved benign growth of revenue by actively seizing share and making concerted efforts.
The profitability is improved through multi-dimensional development. In 2022q1, the gross profit margin of the company increased by 3.0pct on a year-on-year basis from - 2.2pct to 18.5%, but the gross profit margin increased by 3.0pct on a month on month basis from 21q4. The improvement in gross profit margin may come from the balanced production implemented by the company in the field of air conditioning since 2021q4, which has significantly improved in finished product reserve, active control of raw materials and central air coordination. At the same time, the terminal price of household air washing has maintained a positive increase since 2022. In terms of expense rate, the effect of the company's positive efficiency improvement shows that the gross sales difference in Q1 is + 0.4pct year-on-year, of which the management expense rate slightly increased by 1.1pct to 2.3% due to the influence of three electricity and meter consolidation, but remains low, while the sales expense rate is - 2.6pct to 10.5% driven by the scale effect and efficiency improvement of various businesses. Combined with the investment income confirmed by Huayu Sandian, an associate of Q1 Sandian, the non net profit margin deducted by Q1 was flat year-on-year, slightly increasing to 1.0%.
The quality of assets and operations remained stable. The company's Q1 operating net cash flow was - 200 million, mainly due to the large stock strength and the high cost of raw materials, and the corresponding inventory balance increased by 32% to 8 billion yuan. However, at present, the company's cash balance of 6.7 billion is still sufficient, and there are still sufficient Countermeasures in the face of industry pressure.
Risk tip: the improvement of white power profitability is less than expected, and the progress of three power integration and loss recovery is less than expected.
Investment suggestion: the efficiency of the company's white power business has been significantly improved. Although the gross profit margin may fluctuate in the future, the decline of the cost rate may have reflected the positive role of synergy and efficiency improvement on the statement side. Therefore, the expectation of improving the profits of white power and Sandian has been increased and the "buy" rating has been maintained.
The net profit attributable to the parent company from 2022 to 2024 was adjusted to RMB 1.63 billion, 1.91 billion and 2.17 billion (the previous value was RMB 1.42 billion, 1.85 billion and 2.22 billion), with a year-on-year growth rate of 67%, 18% and 14%; Diluted EPS = 1.19, 1.40 and 1.59 yuan, and the current share price corresponds to PE = 10, 8 and 7 times. Maintain the "buy" rating.
