\u3000\u30 Shaanxi Zhongtian Rocket Technology Co.Ltd(003009) 11 Zhejiang Entive Smart Kitchen Appliance Co.Ltd(300911) )
Event: on April 18, 2022, Zhejiang Entive Smart Kitchen Appliance Co.Ltd(300911) issued the 2021 annual report. In 2021, the company realized an operating revenue of 1.230 billion yuan, a year-on-year increase of + 71.66%; The net profit attributable to the parent company was 210 million yuan, a year-on-year increase of + 45.76%. Q4 company achieved an operating revenue of 421 million yuan, a year-on-year increase of + 77.82%; The net profit attributable to the parent company was 54 million yuan, a year-on-year increase of + 12.03%. It is proposed to pay a cash dividend of 6 yuan per 10 shares, with a dividend rate of 23.26% and a dividend rate of 0.96%.
The 21-year assessment target of equity incentive has been achieved, and the market competitiveness has been continuously improved. In the 21st year, the company’s revenue and performance increased at a high rate, and successfully completed the assessment target of equity incentive revenue and net profit growth rate of no less than 60% / 30%. In terms of products, the company’s revenue of integrated stove products in 21 years was 1.126 billion yuan, a year-on-year increase of + 75.14%; Other products include range hoods, gas stoves, integrated sinks, dishwashers and other products, with a total revenue of 103 million yuan, a year-on-year increase of + 41.12%. In the 21 years, the integrated stove industry maintained a high growth rate, with retail sales +41% year-on-year. The growth rate of the company’s integrated stove scale far exceeded that of the industry as a whole, and it was far ahead of the first tier companies. Its brand market share continued to increase, remained at the forefront of the industry, and narrowed the gap with competitors. In terms of sales mode, 89.58% of the company’s revenue comes from distribution channels, and direct sales account for 9.88%. In the future, the company will continue to promote channel construction. While consolidating distribution channels, the company will vigorously develop e-commerce, home decoration, Ka, engineering and other channels to create incremental space.
Q4’s profitability declined, and increased marketing investment throughout the year to promote the construction of brand influence. The gross profit margin in 2021 was 44.73%, with a year-on-year increase of -0.86pct; The net interest rate was 17.04%, year-on-year -3.03pct. Among them, the gross profit margin of integrated stove products was + 1.40% year-on-year, that is, the decline of the overall gross profit margin was mainly affected by other products. Q4 gross profit margin was 43.96%, year-on-year -4.55pct; The net interest rate was 12.83%, with a year-on-year increase of -7.54pct. The gross sales difference of Q4 was -2.77pct year-on-year, or it was mainly affected by the high price of raw materials in 21 years. From the perspective of cost rate, in the past 21 years, the company has significantly increased the investment on the marketing side, striving to improve the company’s influence and brand image, and the management cost rate has been optimized under the scale effect. The annual rates of sales, management and R & D expenses were 19.25%, 3.44 and 4.48%, respectively + 2.72, – 0.94 and + 0.10pct year-on-year; Q4 sales, management and R & D expense rates were 19.06%, 4.91 and 5.43%, respectively -1.78, + 0.83 and + 1.49pct year-on-year. Q4 R & D investment increased significantly.
The inventory turnover rate improved significantly and the operating cash flow increased significantly. 1) In 21 years, the company’s cash + other current assets totaled 969 million yuan, a year-on-year increase of + 15.34%; Contract liabilities + other current liabilities totaled 63 million yuan, a year-on-year increase of – 14.01%; Notes receivable and accounts receivable totaled 70 million yuan, a year-on-year increase of + 182.56%, mainly due to the non receipt of payment for e-commerce platform at the end of the period; At the end of the year, the company’s inventory was 106 million yuan, a year-on-year increase of + 69.82%, mainly due to the expansion of sales scale and the corresponding increase in the inventory of raw materials and finished products. 2) In terms of turnover, the company’s inventory turnover days were -9.62 days year-on-year, which was significantly improved; The turnover days of accounts receivable were + 4.92 days year-on-year. 3) The net operating cash flow of the company in 21 years was 280 million yuan, a year-on-year increase of + 37.48%; Q4 net operating cash flow was 99 million, a year-on-year increase of + 43.79%, with a significant year-on-year increase in revenue.
Steaming and baking is an independent sub category leader, and the “integrated cooking and washing center” is released to promote the development of sets. In April 2022, Zhejiang Entive Smart Kitchen Appliance Co.Ltd(300911) launched a new set of “integrated cooking and washing center”, focusing the independent integrated cooking stove and integrated sink dishwasher within one square meter of the kitchen, creating a small and beautiful modern kitchen solution and promoting the development of integrated kitchen electric sets. Steaming and baking independent integrated stoves are the company’s advantageous products. According to ovicloud, in such products, Yitian’s online and offline sales account for about 50%, significantly ahead of its competitors. The proportion of steaming and baking independent integrated stoves in the industry has increased rapidly, and the online proportion has increased by + 12.93pct year-on-year since 22 years. With the further improvement of the penetration rate of subdivided categories, the company, as a leading distributor, is expected to take the lead in reaping dividends.
Profit forecast: the integrated stove industry has a broad long-term market space. The company focuses on the improvement of products, technology, brand and management, constructs a diversified product matrix, promotes the construction of all-round channel network, improves the brand volume, significantly improves the market competitiveness and establishes the leading position in the industry. We estimate that the company’s operating revenue in 22-24 years will be RMB 1.699/2.216/2.885 billion respectively, with a year-on-year increase of + 38.2% / + 30.4% / + 30.2% respectively; The net profit attributable to the parent company was 280 / 357 / 457 million yuan, with a year-on-year increase of + 33.5% / + 27.6% / + 28.0% respectively, and the corresponding PE was 24.04/18.85/14.73 times.
Risk factors: the price of raw materials continues to rise, the competition in the integrated stove industry intensifies, the policy changes in the downstream real estate industry, the company’s new product launch is less than expected, the company’s channel development is less than expected, and the epidemic situation in China is repeated.
