\u3000\u3 China Vanke Co.Ltd(000002) 508 Hangzhou Robam Appliances Co.Ltd(002508) )
Performance review
On April 19, the company released the annual report of 2021 and the first quarterly report of 2022. The revenue of 21 years was 10.148 billion yuan, a year-on-year increase of + 24.84%, and the net profit attributable to the parent company was 1.332 billion yuan, a year-on-year increase of – 19.81%. Q4 revenue was 3.077 billion yuan, a year-on-year increase of + 22.96%, and the net profit attributable to the parent company was – 11 million yuan, a year-on-year decrease of 549 million yuan. 22q1 achieved a revenue of RMB 2.086 billion, a year-on-year increase of + 9.32%, and a net profit attributable to the parent company of RMB 368 million, a year-on-year increase of + 2.47%.
Business analysis
Annual report for the 21st year: on the revenue side, it has made achievements in leading the industry with strong brand ability and channel ability. The revenue of range hood reached 4.88 billion yuan, a year-on-year increase of + 18.7%; The revenue of gas stoves was 2.44 billion yuan, a year-on-year increase of + 27.3%. The share of traditional categories continues to increase, and the dishwasher of new categories is expected to double in 21 years. In 22 years, the “boss” brand has released new integrated stoves, which is expected to continue to contribute to the increment. On the profit side, the net profit attributable to the parent company in Q4 was -11 million yuan, a year-on-year decrease of 549 million yuan, mainly due to the provision for bad debts of some fine decoration business customers, totaling more than 700 million yuan. The net interest rate attributable to the parent company in 21 years was 13.12%, with a year-on-year decrease of 7.3pct. If the influence of bad debts is excluded, the net interest rate attributable to the parent company in 21 years is about 19%, with a slight year-on-year decrease. Q4 gross profit margin was 43.73%, with a year-on-year increase of -10.4pct. It is expected that in the fourth quarter, according to the change of accounting standards, the annual transportation expenses will be transferred from sales expenses to costs. If this impact is excluded, Q4 gross profit margin will decline slightly by 1PCT, which is expected to be mainly affected by the rise of raw material prices.
2022 first quarter report: 22q1 company achieved a revenue of 2.086 billion yuan, a year-on-year increase of + 9.32%. Under the influence of the epidemic, the revenue growth in the first quarter slowed down slightly. At the end of March, the company held a new product launch and will launch more than 10 boss brand integrated stove products, which is expected to continue to contribute revenue in the follow-up. In terms of profit, the company realized a net profit attributable to the parent company of 368 million yuan, a year-on-year increase of + 2.47%. 22q1 net interest rate attributable to parent company was 17.63%, year-on-year -1.7pct; The gross profit margin is 52.56%, with a year-on-year rate of -4.8pct. Excluding the impact of changes in accounting standards, the gross profit margin in Q1 is expected to be about 55%, with a year-on-year rate of – 2pct. It is expected to be mainly affected by the rise of raw material prices.
Profit forecast & investment suggestions
We estimate that the company’s revenue from 2022 to 2024 will be 11.94 billion yuan, 13.99 billion yuan and 16.42 billion yuan respectively, with a year-on-year increase of 17.7%, 17.2% and 17.3% respectively. It is estimated that the net profit attributable to the parent company from 2022 to 2024 will be 2.17 billion yuan, 2.54 billion yuan and 2.99 billion yuan respectively, with a year-on-year increase of 62.7%, 17.1% and 17.8% respectively. EPS is 2.3, 2.7 and 3.2 respectively. The current share price corresponds to PE of 13.3x, 11.4x and 9.7x respectively from 2022 to 2024, maintaining the “overweight” rating.
Risk tips
Risk of slowdown in real estate growth; Risk of rising raw material prices; New category expansion is less than expected risk.
