\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) released the annual report of 2021. In 2021, the company realized an operating revenue of 2.319 billion yuan (+ 43.65%); The net profit attributable to the parent company was 376 million yuan (+ 36.53%). In 2021q4, the company realized an operating revenue of 721 million yuan (+ 18.29%), and a net profit attributable to the parent company of 102 million yuan (- 14.43%).
Key investment points:
The main business income of integrated stoves maintained a high growth rate, and both online and offline channels achieved rapid growth. 1) Quarterly: 2021q4 revenue achieved double-digit growth. In 2021q4, the revenue was 721 million yuan, with a year-on-year increase of 18.29%. 2) By category: the main business income of integrated stoves has maintained rapid growth. In 2021, the company’s revenue from integrated stoves was 2.039 billion yuan (+ 45.33%), that from washing products was 132 million yuan (+ 24.53%), and that from other products was 149 million yuan (+ 40.50%). 3) By channel: both online and offline achieved rapid growth. In 2021, the company’s online / offline channel revenue was RMB 969 million / 1.349 billion respectively, with a year-on-year increase of 53.03% and 37.60%, and the revenue from online sales to end consumers accounted for about 80%. From the perspective of distribution channels + Ka, the revenue of e-commerce channels + Ka in the same period is nearly 25.5%, which is nearly 25% of that of e-commerce channels + Ka in 2020.
The price pressure of raw materials appears, and the profitability of 2021q4 is under pressure. 1) Gross profit margin: the gross profit margin of 2021q4 company is 42.98% (- 10.40pct), of which the gross profit margin is reduced by about 2pct due to the impact of the change of accounting standards in which transportation expenses are included in the cost side. After excluding this impact, the gross profit margin of 2021q4 decreases by about 8pct year-on-year, or it is affected by the rise of raw material prices and the increase of dealer rebate provision; 2) Net interest rate: the net interest rate of 2021q4 company is 14.12% (-5.51pct). The company has withdrawn 14.4 million yuan of bad debt provision for accounts receivable for Suning.Com Co.Ltd(002024) and after excluding the impact, the net interest rate of 2021q4 company is 16.20% (- 3.43pct). The decline of gross profit margin reduced the net profit margin, which was slightly less than the gross profit margin, mainly due to the optimization of the company’s expense side. Without considering the change of accounting caliber, the rates of sales, management and R & D expenses of 2021q4 company were 21.32%, 2.80% and 3.08% respectively, with a year-on-year increase of -2.59 / – 0.29 / – 1.34pct.
Actively improve the diversified three-dimensional channel network and realize online + offline two wheel drive. The company vigorously promotes the laying of distribution stores, maintains the advantages of online channels, actively expands various emerging channels and injects new vitality. 1) Distribution channels: in 2021, the company has achieved full coverage in key cities across the country, with about 2000 distribution stores and more than 200 new distributors; 2) E-commerce channels: make full use of e-commerce promotion opportunities and implement product positioning and pricing strategies differentiated from offline channels. According to ovicloud data, the online listing rate of the company in 2021 was 23.4% (+ 4.4pct), leading the second place by 12.1pct; 3) Ka channel: cooperate with home appliance Ka stores such as Suning and Gome, encourage dealers to enter Ka stores, and the order amount will exceed 100 million yuan in 2021; 4) Sinking channel: enter Jingdong store, tmall premium products and Suning retail cloud, with an order volume of about 300 million yuan in 2021; 5) Decoration channel: cooperate with the decoration company to layout the fine decoration market and put the sales ahead. In 2021, the sales return exceeded 76 million yuan and the annual sales volume was about 15000 units; 6) Project Channel: participated in the formulation of the operation guidelines for bidding, procurement and application of real estate integrated stoves, assisted in in-depth cooperation with real estate enterprises, and signed a contract amount of nearly 150 million yuan in 2021. 7) Overseas channels: actively layout the Southeast Asian market.
Strengthen the shaping of high-end brand image and constantly enrich the product matrix. 1) Marketing side: adhere to the brand promotion strategy of combining traditional marketing media with new mobile internet promotion. The company participated in the live broadcast of “super factory” on China Central Television Network, and joined hands with spokesperson Huang Lei to participate in the fifth season of “yearning for life”, so as to realize the in-depth circle of young customers; Meanwhile, tiktok and Xiaohong book have been promoted by new media, and through good content and master’s planting grass, we have improved user’s brand preference and product trust. At the same time, the company’s marketing team has continuously empowered dealers, organized more than 10000 alliance sales and other activities, carried out various trainings and improved the operation ability of dealers. 2) Product side: the company launched more than 50 new products throughout the year, covering integrated stove, dishwasher, gas water heater, kitchen cabinet, etc., and the product matrix was further enriched.
Online + offline channels are driven by two wheels. Marketing efforts capture the minds of consumers, cover them for the first time, and give them a “buy” rating. As a leader in the integrated stove industry, the company actively builds a diversified channel network, makes marketing efforts to strengthen consumer education, and the company’s performance is expected to continue to grow rapidly. It will be covered for the first time and given a “buy” rating. We predict that the company’s net profit attributable to the parent company from 2022 to 2024 will be RMB 505652/794million, corresponding to EPS of RMB 1.25/1.61/1.96, and the current share price corresponding to PE of 28.21/21.85/17.96.
Risk tips: repeated covid-19 epidemic, fluctuations in the real estate market, fluctuations in the price of main raw materials, intensified competition in the integrated stove market, and less than expected new product research and development.
