\u3000\u3 China Vanke Co.Ltd(000002) 508 Hangzhou Robam Appliances Co.Ltd(002508) )
Event: Hangzhou Robam Appliances Co.Ltd(002508) released the annual report of 2021 and the first quarterly report of 2022. The company achieved a revenue of 10.148 billion yuan in 21 years, a year-on-year increase of + 24.84%; The net profit attributable to the parent company was 1.332 billion yuan, a year-on-year increase of – 19.81%;. Among them, the single quarter revenue of 21q4 was 3.077 billion yuan, an increase of 22.96% at the same time; The net profit attributable to the parent company was -11 million yuan, a year-on-year increase of -102.00%. 22q1 company achieved a revenue of 2.086 billion yuan, an increase of 9.32% at the same time; The net profit attributable to the parent company was 368 million yuan, an increase of 2.47% at the same time. In addition, according to the company’s announcement, the bad debt accrued in 21q4 was 780 million yuan. Under the condition of reducing the impact of bad debt impairment and considering tax deduction (estimated at the tax rate of 15%), the parent company in the whole year of 21 / Q4 was 1.964609 billion yuan respectively, an increase of 18.26% / 13.28%.
Traditional categories maintain a dominant position, while emerging categories continue to make efforts. 1) In terms of growth rate, the first product group increased steadily, range hood / gas stove increased by 18.73% / 27.25%, the second and third product groups increased rapidly, and the integrated steaming and baking machine / dishwasher / water heater increased by 71.26% / 101.32% / 172.57%; 2) In terms of the proportion, the category structure was continuously optimized and the supporting rate of the second and third categories was accelerated. The proportion of integrated steaming and baking machine / dishwasher increased by 1.73/1.69pct to 6.38% / 4.44% at the same time; 3) In terms of market share, in the past 21 years, the company’s range hood was the first in both online and offline materials, with market share of 16.9% / 30.5% respectively; The offline market share of embedded integrated steaming and baking machine / dishwasher reached 34.8% / 17.5% respectively, and the integrated machine ranked first offline.
Complete channel layout and rapid growth of online channels. 1) The company’s e-commerce channels have increased rapidly. The company’s online sales are mainly direct sales, with a year-on-year increase of 39.13% in 21 years; 2) The engineering channel has optimized the customer structure, with a slight increase of 6.95% in the past 21 years, but its range hood ranks first in the fine decoration market, with a share of 36.2%; 3) The growth rate of retail and innovative channels was stable, with the same increase of 19.23% / 9.85% in consignment / distribution in 21 years.
Good fee control ability and strong profitability stability. 1) Under the high cost of raw materials, the gross profit margin of the company in the whole year of 21 was – 3.81pct to 52.35% year-on-year; Except that the sales rate is affected by the adjustment of accounting standards, other rates remain stable. The sales / management / R & D / finance rate in 21 years increased from -2.22 / -0.07 / -0.12/0.47pct to 24.19% / 3.58% / 3.61% / – 1.38% year-on-year; Overall, the net profit margin of the company in the 21st year was -7.47pct to 13.29% year-on-year. 2) 22q1 gross profit margin -4.78pct to 52.56% year-on-year; The rate remained stable during the period; Overall, the net interest rate of 22q1 decreased slightly by 1.45pct to 17.54%. 3) In terms of cash flow, the net cash flow from operating activities in 21 years was – 11.18% to 1.365 billion yuan year-on-year, and the net cash flow from 22q1 operating activities was – 12.38% to 128 million yuan year-on-year, which were mainly due to the increase in the cost of raw materials and other materials and the increase in cash outflow during the reporting period.
Expanding channels to expand categories is expected to successfully develop the second growth curve. On the basis of the basic stability of the traditional smoke stove business, the company has moved from expanding channels to expanding categories, and created a whole kitchen category matrix. The two main brand integrated stoves released at the end of March this year continue their high-end positioning and lead the industry with large firepower and strong exhaust characteristics; Dishwashers and steaming and baking machines in emerging categories continue to be used in large quantities, which is more suitable for Chinese kitchens Hangzhou Robam Appliances Co.Ltd(002508) relying on the advantages of brand + channel + organizational structure, and with keen insight into consumer demand, it is expected to successfully develop the second growth curve.
Profit forecast and investment suggestions. We expect the company to realize a net profit attributable to the parent company of RMB 2.211/24.4/2.816 billion from 2022 to 2024, with a year-on-year increase of 66.0% / 10.4% / 15.4%, maintaining the “overweight” rating.
Risk warning: price fluctuation of raw materials, fluctuation of real estate market and intensification of market competition
