\u3000\u30 Shaanxi Zhongtian Rocket Technology Co.Ltd(003009) 11 Zhejiang Entive Smart Kitchen Appliance Co.Ltd(300911) )
Event: Zhejiang Entive Smart Kitchen Appliance Co.Ltd(300911) published the annual report of 2021. The company achieved revenue of 1.23 billion yuan in 2021, yoy + 71.7%; Achieved performance of 210 million yuan, yoy + 45.8%. Converted 2021q4 single quarter revenue of 420 million yuan, yoy + 77.8%; The performance is 50 million yuan, yoy + 12.0%. We believe that the company has optimized its organizational structure, increased marketing investment and maintained rapid growth in revenue. The future business situation deserves the attention of the capital market.
Promotion of the company's position in the industry: in 2021q4, Yitian's revenue increased rapidly, mainly from the contribution of sales volume. Throughout the year, the growth rate of the company's integrated stove sales was close to that of revenue, much higher than that of the industry in the same period (according to the data of ovicloud, the retail volume of the integrated stove industry increased by 28% in 2021), and the market share of Yitian sales increased. We believe that the company is optimizing the quality of offline dealers, the channels are more coordinated, and the future sales can be expected.
Large scale growth of distribution channels: according to the main channels, in 2021, the revenue of Yitian distribution mode (including online orders from dealers) was 1.1 billion yuan, yoy + 80.3%, accounting for about 89.6% of the total revenue; The revenue of direct selling mode (dominated by e-commerce channels) is 120 million yuan, yoy + 22.6%, accounting for 9.9% of the total revenue; The export revenue was 6.634 million yuan, yoy + 2.8%. There are two reasons for the large-scale growth of the company's distribution channels: 1) dealers actively place orders through online channels; 2) Yitian optimized the dealer team, upgraded and transformed offline stores, and enhanced the dealer's operation ability.
The company has improved its channel network: according to the announcement, by the end of 2021, the company has more than 1300 dealers, more than 3500 exclusive stores and settled sink channel outlets, and more than 5200 cooperative decoration enterprises. The company continues to improve its channel network and layout emerging channels such as home appliance Ka stores and projects, which will also bring new revenue growth points.
Q4 profitability decline: Yitian Q4 net interest rate was 12.8%. Year on year -7.5pct, mainly due to: 1) due to the obvious rise in the price of raw materials and the company's active layout of various sales channels, Q4 gross profit margin was -4.6pct year on year; 2) R & D investment increased, and Q4 R & D expense rate was + 1.5pct year-on-year. 3) Due to the increase of share based payment expenses and depreciation and amortization expenses, the Q4 management expense rate was + 0.8pct year-on-year. We believe that the company is in a period of change. Due to actively developing the market, the cost investment has increased.
The company plans to terminate some raised investment projects: according to the announcement, due to the adjustment of business strategy, the company plans to terminate the "R & D center and information construction project". The original planned investment amount of the project is 95.031 million yuan. In addition to this project, other raised capital investment projects of Yitian remain unchanged.
Investment suggestion: Yitian integrated stove is a leading enterprise in the industry, with product advantages and wide channel coverage. We expect that the company's EPS from 2022 to 2023 will be 2.42/3.06 yuan respectively, and the 12-month target price will be 76.50 yuan, corresponding to 25 times PE in 2023, maintaining the investment rating of buy-a.
Risk tip: the price of raw materials has risen sharply and the competition pattern has deteriorated
