\u3000\u3 China Vanke Co.Ltd(000002) 790 Xiamen R&T Plumbing Technology Co.Ltd(002790) )
Event overview
The company released the annual report of 2021: in 2021, the company realized a revenue of 1.868 billion yuan, a year-on-year increase of + 45.48%; The net profit attributable to the parent company was 139 million yuan, a year-on-year increase of + 21.58%. Among them, Q4's revenue in a single quarter was 559 million yuan, a year-on-year increase of + 12.32%; The net profit attributable to the parent company was 28 million yuan, a year-on-year increase of - 27.72%. Revenue growth exceeded expectations, and the revenue of 21q4 in a single quarter was the highest level in a single quarter since listing; The profit side was affected by factors such as the rise in the price of raw materials, the company's efforts to promote its own brand and the increase in the cost rate during the period caused by the investment in R & D of intelligent products. 21q4 fell year-on-year.
In terms of cash flow, the net cash flow from operating activities in 2021 was 102 million yuan, a year-on-year increase of + 17.30%, of which the net cash flow from operating activities in Q4 was 70 million yuan, a year-on-year change from negative to positive.
In addition, the company plans to distribute a cash dividend of 1.50 yuan (including tax) for every 10 shares.
Analysis and judgment:
Revenue side: the volume of new businesses such as intelligent toilet is obvious, and the growth rate of domestic businesses is slightly faster than that of overseas businesses.
In terms of business, in 2021, the company's water tank and accessories, intelligent toilet and cover sector and drainage system products on the same floor achieved revenue of 776 million yuan, 855 million yuan and 173 million yuan respectively, with a year-on-year increase of + 31.38%, + 57.51% and + 87.64% respectively. All major businesses achieved rapid growth. Among them, the business of traditional water tank and accessories developed steadily, and the volume of new products such as intelligent toilet and cover sector and drainage system on the same floor increased significantly. In terms of regions, the company's domestic and overseas business revenue in 2021 was 1.343 billion yuan and 525 million yuan respectively, with a year-on-year increase of + 47.24% and + 41.16% respectively. The growth rate of domestic business revenue was slightly faster than that of overseas business. In terms of channels, the company's offline and online channel sales in 2021 were 1.851 billion yuan and 17 million yuan respectively, with a year-on-year increase of + 45.37% and + 59.07% respectively. Offline channels are still the main channels of the company, and online channels benefit from their own brands.
Profit side: short-term pressure, waiting for repair.
In terms of profitability, the gross profit margin and net profit margin of the company in 2021 were 22.59% and 7.15% respectively, with a year-on-year decline of -1.58pct and -1.75pct respectively. Among them, the gross profit margin and net profit margin in Q4 were 20.03% and 4.44% respectively, with a year-on-year decline of -1.06pct and -3.26pct respectively. The decline in gross profit margin was mainly affected by the rise in the prices of engineering plastics and other main raw materials. By business, the gross profit margin of the company's water tank and accessories, intelligent toilet and cover sector in 2021 were 22.09% and 19.09% respectively, with a year-on-year increase of -2.48pct and -0.61pct respectively; In terms of regions, the domestic and overseas gross profit margins in 2021 were 21.62% and 25.05% respectively, with a year-on-year increase of + 0.99pct and -7.78pct respectively, of which the overseas gross profit margin decreased significantly. The period expense rate was well controlled. In 2021, the period expense rate of the company was 14.74%, with a year-on-year rate of -0.89pct, of which the sales expense rate, management expense rate, R & D expense rate and financial expense rate were 5.06%, 5.32%, 3.83% and 0.52% respectively, with a year-on-year rate of + 1.06pct, -0.57pct, -0.34pct and -1.04pct respectively; Among them, the expense rate of Q4 company during the period was 13.77%, with a year-on-year increase of + 0.96 PCT, of which the sales expense rate, management expense rate, R & D expense rate and financial expense rate were 2.35%, 3.42%, 6.39% and 1.60% respectively, with a year-on-year increase of + 0.89 PCT, -0.91 PCT, + 2.68 PCT and -1.70 PCT. the company increased its efforts to promote its own brands and increased its investment in R & D of intelligent products around toilet solutions, As a result, Q4 sales expense rate and R & D expense rate have increased.
Investment suggestions:
Continue to be optimistic about the rapid improvement of the penetration rate of the smart toilet. The company's smart toilet OEM business has full orders and its own brand has made rapid efforts. The profitability of the profit side continues to improve with the exertion of the scale effect. Considering the repeated epidemic and the impact of high raw material prices, the previous profit forecast was lowered. From 2022 to 2023, the operating revenue was reduced from 2.472/3.121 billion yuan to 2.469/3.090 billion yuan respectively, and the EPS was reduced from 0.65/0.88 yuan to 0.58/0.78 yuan respectively. It is estimated that the operating revenue and EPS of the company in 2024 will be 3.724 billion yuan and 0.99 yuan respectively. According to the closing price of 6.19 yuan / share on April 18, 2022, the corresponding PE will be 11 / 8 / 6 times respectively, Maintain the "buy" rating.
Risk tips
New businesses such as smart toilets are less than expected; The impact of sharp fluctuations in raw material prices; The risk of intensified industry competition; The impact of continued maritime tension; The short-term epidemic has repeatedly affected.
