\u3000\u3 China Vanke Co.Ltd(000002) 790 Xiamen R&T Plumbing Technology Co.Ltd(002790) )
Event: on April 18, Xiamen R&T Plumbing Technology Co.Ltd(002790) released the 2021 annual report. In 2021, the company realized an operating revenue of 1.868 billion yuan, a year-on-year increase of 45.48%; The net profit attributable to the parent company was 139 million yuan, a year-on-year increase of 21.58%; The net profit attributable to the parent company after deduction was 114 million yuan, with a year-on-year increase of 36.75%. In 2021q4, the company realized an operating revenue of 559 million yuan, a year-on-year increase of 12.32%; The net profit attributable to the parent company was 28 million yuan, a year-on-year decrease of 27.72%; The net profit attributable to the parent company after deduction was 20 million yuan, a year-on-year decrease of 12.96%.
The smart toilet in the card position is a high prosperity track, and the market penetration has a large space to improve
In 2021, the company's water tank and accessories, intelligent toilet and cover sector and drainage system products on the same floor achieved revenue of 776 million yuan, 855 million yuan and 173 million yuan respectively, with a year-on-year increase of 31.38%, 57.51% and 87.64% respectively. The company has gradually expanded from bathroom accessories to the field of intelligent bathroom, and the new business of intelligent toilet has accelerated. In terms of channel layout, the company mainly carries out tob business in ODM mode. China's sanitary ware industry is developing towards intelligent and diversified application fields, and the market potential is huge. According to the statistics of the white paper on the development of China's intelligent toilet industry released by China home appliance network in December 2021, the market penetration rate of China's intelligent toilet is about 5%, which has more room for improvement compared with Japan (nearly 90%) and South Korea (about 60%). Under the background of high prosperity of intelligent sanitary ware, in 2021, the company's flushing component products ranked first in China and the top three in the world. The company maintained good and stable cooperative relations with well-known medium and high-end sanitary ware brand manufacturers at home and abroad, such as Roca, Inax, Kohler, American Standard, Wrigley, navigation mark and so on.
The continuous expansion of production capacity meets the market demand, and the rapid development and growth of private brands can be expected
In 2021, the company's production capacity maintained a high growth. The production of sanitary ware and its accessories reached 369578 million sets, with a year-on-year increase of 46.90%. Moreover, the project of 1.2 million sets of intelligent sanitary ware products is expected to be put into operation this year. With the gradual realization of scale effect, the growth of profitability can be expected. The company has developed smart toilet's own brand business through the layout of distributors, online channels (tiktok, Tmall) and engineering channels, and achieved about 61 million revenue in 2021. In terms of R & D, the company continues to develop new products every year to meet the different needs of customers. As of December 31, 2021, the company and its wholly-owned subsidiaries have 1466 patents and have industry-leading bathroom water-saving technology.
The annual expenses are well controlled, and the new business expansion and profit improvement can be expected
In 21 years, the company's comprehensive gross profit margin fell by 1.58pct to 22.59% year-on-year, mainly due to the large increase in the price of raw materials. In terms of products, the gross profit margins of the company's water tank and accessories, intelligent toilet and cover sector in 2021 were 22.09% and 19.09% respectively, with a year-on-year increase of -2.48pct and -0.61pct respectively. During the 21 years, the company's expense rate was 14.74%, with a year-on-year decrease of 0.89pct, and the sales / management / R & D / financial expense rate was 5.06% / 5.32% / 3.83% / 0.52% respectively, with a year-on-year increase of + 1.06 / - 0.57 / - 0.34 / - 1.04pct respectively. The increase in sales expenses was mainly due to the company's strengthening the promotion of its own brand.
Investment suggestion: Xiamen R&T Plumbing Technology Co.Ltd(002790) relying on the industry leading advantages of traditional water-saving flushing components, continue to layout the 100 billion blue ocean market of China's intelligent toilet. With the continuous improvement of the penetration rate of intelligent bathroom and the continuous expansion of production capacity layout, the new business of intelligent toilet is expected to accelerate the volume. We estimate that the operating revenue of Xiamen R&T Plumbing Technology Co.Ltd(002790) 20222024 will be RMB 2.514 billion, RMB 3.030 billion and RMB 3.612 billion, with a year-on-year increase of 34.58%, 20.53% and 19.20%; The net profit attributable to the parent company was 247 million yuan, 319 million yuan and 408 million yuan, with a year-on-year increase of 77.31%, 29.01% and 28.13%. The corresponding PE was 10.5x, 8.1x and 6.4x, and the investment rating of Buy-A was given.
Risk tip: the competition in the smart toilet industry intensifies the risk, the expansion of private brands is less than expected, and the price of raw materials fluctuates sharply.
