\u3000\u30 Shaanxi Zhongtian Rocket Technology Co.Ltd(003009) 11 Zhejiang Entive Smart Kitchen Appliance Co.Ltd(300911) )
Key investment points
Performance summary: in 2021, the company achieved a revenue of 1.23 billion yuan, a year-on-year increase of 71.7%; The net profit attributable to the parent company was 210 million yuan, a year-on-year increase of 45.8%. In a single quarter, Q4 company achieved a revenue of 420 million yuan, a year-on-year increase of 77.8%; The net profit attributable to the parent company was 50 million yuan, with a year-on-year increase of 12%; The net profit attributable to the parent company after deduction was 30 million, a year-on-year decrease of 20%, mainly due to the realization of investment income of 19.788 million yuan this year. In addition, the company plans to pay a cash dividend of 6 yuan for every 10 shares, with a dividend rate of 30.9%.
The industry maintained a high boom and the company's revenue increased rapidly. According to the total data pushed by AVC, the retail volume of the integrated stove Market in 2021 was 3.04 million units and the retail volume was 25.6 billion yuan, with a year-on-year increase of 28% and 41% respectively. For traditional smoke stoves, at present, the integrated stoves have a small market share and low penetration rate, and there is still a large room for growth in the future. As the leading enterprise in the integrated stove industry, the company increased R & D investment and rapidly promoted new products during the reporting period; Improve the construction of three-dimensional channels and strengthen brand publicity. Product channels were diversified and optimized, and the sales of integrated stoves of the company increased rapidly. According to AVC data, the market share of the company's online and offline sales in 2021 was 11.3% / 6.9% respectively, with a year-on-year increase of 4.8/4.3pp.
A benign decline in profitability. During the reporting period, the company's comprehensive gross profit margin was 44.7%, a year-on-year decrease of 0.9pp; The net interest rate of the company was 17%, a year-on-year decrease of 3PP. In terms of expense rate, the company increased marketing investment and promoted the sales expense rate to increase by 2.7pp to 19.3% year-on-year; Under the cost reduction and efficiency increase, the management expense ratio decreased by 0.8pp to 7.9% year-on-year; The financial expense ratio was - 0.9%, with a year-on-year increase of 0.2pp. On the whole, the decline of the company's profitability is mainly due to the increase of the sales expense rate. At present, the integrated stove is in the key period of horse racing enclosure. We believe that the decline of profitability caused by the increase of the sales expense rate is conducive to the company to expand the scale of revenue and seize the market share. According to the data of a single quarter, the gross profit margin of Q4 was 44%, a year-on-year decrease of 4.5pp; The net interest rate was 12.8%, down 7.5pp year-on-year. We speculate that the decline in profitability is mainly affected by the rise in the price of raw materials and the increase in marketing investment promoted by Q4.
Strengthen the marketing layout and comprehensively optimize the channel network. The company has strengthened brand publicity and created brand voice through the combination of point, line and surface, such as upgrading brand image, standardizing service and improving advertising. The company vigorously promotes the transformation and upgrading of the brand-new and modern image of terminal stores. Through the employment of star endorsements and the continuous innovation of content manufacturing, the company constructs a diversified and all-round promotion and communication matrix with new Internet media as the core, television, large transportation and outdoor, and continuously optimizes the accurate transformation of digital media. In terms of sales channels, the company continues to improve the construction of three-dimensional channels. In terms of offline channels, the company has a stable and efficient distribution team. By the end of the reporting period, the company has more than 1300 dealers, basically realizing the wide coverage of distribution channels. At the same time, the company has also actively entered Ka, home decoration and other channels. The company has settled in more than 3500 channel outlets and dealer stores, and more than 5200 cooperative decoration enterprises. In terms of online channels, the company increased publicity investment and promoted the sales volume of tmall and jd.com, the main sales platforms, to increase by 212% / 193% year-on-year respectively.
Profit forecast and investment suggestions. It is estimated that the EPS from 2022 to 2024 will be 2.49/3.29/4.27 yuan respectively. Considering that the company, as a high-quality enterprise of integrated stoves, has rapidly promoted new products and diversified and optimized product promotion channels, it is expected that the company will fully benefit from the improvement of the penetration rate of integrated stoves and maintain the "buy" rating.
Risk warning: the price of raw materials may fluctuate sharply and the terminal sales may be less than expected.
