\u3000\u30 Shaanxi Zhongtian Rocket Technology Co.Ltd(003009) 11 Zhejiang Entive Smart Kitchen Appliance Co.Ltd(300911) )
Core view
Event: the company released its annual report for 2021, and achieved an annual operating revenue of 1.23 billion yuan, a year-on-year increase of + 71.66%; The net profit attributable to the parent company was 210 million yuan, a year-on-year increase of + 45.76%; It is proposed to distribute a cash dividend of 6.00 yuan (including tax) for every 10 shares.
Comments:
The annual performance was in line with expectations, and the growth rate of Q4 single quarter performance slowed down. On the whole, the company’s operating performance in 2021 was excellent, and the annual performance was in line with expectations. In the whole year, the revenue of the company’s integrated stove reached 1.126 billion yuan, a year-on-year increase of + 75.14%. The high growth of integrated stove products is mainly driven by the high outlook of the integrated stove industry, and the market share of the company’s products is accelerated by the simultaneous increase of volume and price. According to ovicloud, the market share of the company’s online / offline retail sales of integrated stove in 2021 is + 4.8pct / + 4.3pct to 11.3% / 6.9% respectively. Quarterly, the company achieved a revenue of 421 million yuan in 2021q4, a year-on-year increase of + 77.82%; The net profit attributable to the parent company was 54 million yuan, with a year-on-year increase of + 12.03%, and decreased compared with Q3 (Q3 + 58.11%). The growth rate of Q4 performance is slower than that of revenue and has slowed down compared with Q3. We believe that the main reason is that the gross profit margin is under pressure due to the rise in the price of raw materials.
The investment of expenses has been strengthened, and the annual profit margin has been under pressure. Affected by the sharp rise in the price of raw materials during the year, the company’s gross profit margin in 2021 increased from -0.86pct to 44.73% year-on-year. During the whole year, the expense ratio was + 2.10pct to 26.25%, of which the sales / management / R & D expense ratio was + 2.72pct / – 0.94pct / + 0.10pct to 19.25% / 3.44% / 4.49% respectively. The increase in the sales expense ratio was mainly due to the company’s increased marketing investment, which comprehensively affected the annual net interest rate from – 3.03pct to 17.04% year-on-year. The profitability of the company was under pressure in the short term, and it is expected to improve with the stabilization of raw material prices.
The e-commerce platform has made efforts to improve the layout of emerging channels. The company strengthened the layout of e-commerce platforms. In 2021, the Gmv of the main e-commerce platforms reached 696 million yuan, a year-on-year increase of + 199%. The revenue of e-commerce platforms has become an important driving force for the company’s performance growth. In offline channels, the company continues to strengthen the construction of emerging channels (Ka / home decoration / Engineering channels) and sinking market expansion. By the end of 2021, the company has more than 1300 dealers, more than 3500 sinking channel outlets and dealer stores, and more than 5200 cooperative decoration enterprises. In the future, with the improvement of the company’s comprehensive operation strength of multiple channels, the revenue is expected to maintain rapid growth.
Investment suggestion: the adjustment of organizational structure is beneficial to accelerate the integration of channels and maintain the “buy” rating. After the adjustment of the company’s organizational structure in 2021, the results are gradually showing. In the future, with the accelerated release of new products and the further improvement of the omni-channel strategy, the company’s performance is expected to continue to grow. We maintain the company’s profit forecast. It is estimated that the company’s net profit attributable to the parent company from 2022 to 2024 will be 276 / 350 / 433 million yuan respectively, corresponding to 24 / 19 / 16 times of the current market value PE respectively, maintaining the “buy” rating.
Risk tips: the development of new products is not as expected, the epidemic situation in China is repeated, and the price of raw materials is rising
