\u3000\u3 China Vanke Co.Ltd(000002) 508 Hangzhou Robam Appliances Co.Ltd(002508) )
Core conclusion
Event: the company released the 2021 annual report and the first quarterly report of 2022. In 2021, the company realized a revenue of 10.15 billion yuan, a year-on-year increase of 24.8%, and a net profit attributable to the parent company of 1.33 billion yuan, a year-on-year increase of – 19.8%; In 2021q4, the revenue was 3.08 billion yuan, a year-on-year increase of + 23.0%, and the net profit attributable to the parent company was – 10 million yuan, a year-on-year increase of – 102.0%; In 2022q1, the revenue was 2.09 billion yuan, a year-on-year increase of + 9.3%, and the net profit attributable to the parent company was 370 million yuan, a year-on-year increase of + 2.5%.
Traditional categories and new categories worked together. The growth rate was bright in 2021. Affected by the epidemic, the growth rate of revenue decreased slightly in the first quarter. In terms of traditional categories, the revenue growth of range hood and gas stove in 2021 was 18.7% and 27.3% respectively, which was much higher than the overall performance of the market, and the leading position was stable. In terms of new categories, integrated steaming and baking, dishwashers, water heaters and integrated stoves achieved high growth. The growth rates in 2021 were 71.3%, 101.3%, 172.6% and 26.0% respectively, and the total proportion increased by 4.3pct to 15.6%. Affected by the epidemic, the revenue of 2022q1 was + 9.3% year-on-year, and the growth rate slowed down slightly. However, the company has significant advantages in the field of traditional smoke stoves and continues to make efforts in emerging fields such as integrated stoves and dishwashers. In March, the company has launched a number of heavy new products, including traditional smoke stoves, integrated stoves, dishwashers and other categories, highlighting the company’s R & D strength. With the effective control of the epidemic, driven by the new products, the revenue is expected to return to excellent growth.
Excluding the bad debt factor, the profitability declined slightly in 2021 and 2022q1 due to the rise in the price of raw materials. In 2021, the gross profit margin was 52.4%, year-on-year -3.8pct, 21q4 gross profit margin was 43.7%, year-on-year -10.4pct, 22q1 gross profit margin was 52.6%, year-on-year -4.8pct. The decline of gross profit margin was mainly due to the change of accounting standards and the continuous high price of raw materials. On the net profit side, according to the calculation, excluding the bad debt provision, the net interest rate in 2021 is about 19.4%, year-on-year -1.4pct, and the net interest rate in 22q1 is 17.5%, year-on-year -1.5pct. The company actively prepares goods, and the impact of the rise in the price of raw materials is expected to be alleviated.
Investment suggestion: the company’s traditional smoke stove business maintains steady growth. With the advantages of brand and channel, new categories such as dishwasher and integrated stove continue to make efforts. After the epidemic is alleviated, the revenue growth rate will continue to improve, and the company’s management ability is excellent. Under the background of raw material price rise, the profit is expected to remain stable. It is expected to realize the net profit attributable to the parent company of RMB 2.154/25.182961 billion from 2022 to 2024, maintaining the “buy” rating.
Risk tip: the performance of new products is lower than expected, the price of raw materials fluctuates, and the market competition intensifies.
