\u3000\u3 China Vanke Co.Ltd(000002) 003 Zhejiang Weixing Industrial Development Co.Ltd(002003) )
Event: the company released its annual report for 2021, and achieved an operating revenue of 3.356 billion yuan in 2021, with a year-on-year increase of 34.44%; The net profit deducted from non parent company was 439 million yuan, with a year-on-year increase of 73.69%.
The main business grew rapidly, and the expansion of new categories achieved initial results. In terms of business, the revenue of zipper / button increased by 26.21% / 37.95% year-on-year respectively, and the revenue accounted for 41.44% / 54.71% respectively. The main business achieved rapid growth, mainly because the company further strengthened the market expansion of high-quality customers, and more than 100 million brand customers received orders; The operating revenue of other clothing accessories business increased by 217.93% year-on-year, accounting for 2.41% of the revenue. The "big accessories strategy" has achieved initial results.
The revenue in the international market grew rapidly. In terms of regions, the operating revenue of China / international regions increased by 29.49% / 49.87% respectively year-on-year, mainly due to: 1) the return of overseas orders; 2) With the promotion of intelligent manufacturing and the strengthening of R & D and design, the international competitiveness of the company's auxiliary products has been continuously improved. In addition, the global layout has achieved certain results, driving the increase of international orders. The revenue of China / international regions accounts for 75.71% / 24.29% respectively. From the perspective of brand billing caliber, the revenue of international regions is expected to exceed 50%.
Enhanced ability to control fees. In 2021, the company's expense rate was 22%, with a year-on-year increase of -3.49pct. Specifically, the sales expense ratio is 7.80% (- 2.68 PCT), which is mainly due to the adjustment of transportation and packaging expenses to operating costs; The management expense rate is 9.32% (- 0.4pct) and the financial expense rate is 0.75% (- 0.4pct); The R & D expenses were 4.13%, basically the same as last year, but the R & D expenses increased by 34.19% year-on-year, mainly due to the company's continuous increase in product R & D and more growth in intelligent equipment and process technology in order to improve the company's core competitive advantage.
Increased profitability. The company's gross profit margin / net profit margin after non deduction were 38.02% / 13.10% respectively, with a year-on-year decrease of -0.82 / + 2.96pct. The decrease in gross profit margin was mainly due to the adjustment of accounting standards (transportation and packaging expenses were adjusted from sales expenses to operating costs) and the increase in international freight. Excluding the impact of accounting standards, the company's gross profit margin was 40.27%, with a year-on-year increase of + 1.43pct, and its profitability was improved.
Investment suggestion: the company adheres to the key customer strategy, focuses on core customers and key markets, actively expands new categories, and is expected to continue to improve its market share in existing customers; At the same time, actively expand the international market, and the international orders grow rapidly. It is expected to continue to seize the market share of YKK and continue to develop new customers. Since the beginning of this year, the repeated epidemic has affected the end consumption of the garment industry. Downstream brand customers are cautious in placing orders, which has an impact on the company's orders in the short term, but the long-term logic remains unchanged. They are optimistic about the growth of the company's performance after the epidemic. It is expected that the company will realize an operating revenue of 3.867 billion yuan, 4.426 billion yuan and 4.967 billion yuan from 2022 to 2024, and the net profit attributable to the parent company will be 554 million yuan, 649 million yuan and 745 million yuan, EPS will be 70 million yuan, 0.81 million yuan and 0.93 yuan respectively, giving the company 20-23 times PE, The corresponding reasonable price range is 14.00-16.10 yuan, maintaining the "recommended" rating.
Risk tip: the epidemic has repeatedly affected end consumption and intensified industry competition.
