\u3000\u30 Shaanxi Zhongtian Rocket Technology Co.Ltd(003009) 11 Zhejiang Entive Smart Kitchen Appliance Co.Ltd(300911) )
Event: the company released the annual report of 2021.
The company achieved a revenue of 1.230 billion yuan in 2021, 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%; Among them, Q4 achieved a revenue of 421 million yuan, a year-on-year increase of + 77.82%, and a net profit attributable to the parent company of 54 million yuan, a year-on-year increase of + 12.03%.
The integrated stove business grew rapidly, and the annual revenue exceeded expectations.
In the past 21 years, the company was determined to forge ahead, promote the comprehensive upgrading of products, brands, channels, management and talents, gradually realize the reform results, and the annual revenue exceeded expectations. In terms of products, the company’s integrated stove / other businesses achieved revenue of 1.126103 billion yuan respectively, with a year-on-year increase of + 75.14% / + 41.12% respectively. The revenue of integrated stove business accounted for 91.59%, an increase of 1.83 PCT compared with the previous year. The high growth of integrated stove business was mainly due to the simultaneous rise of product volume and price. According to Aowei data, the company’s online / online sales in the past 21 years were + 102.30% / + 127.57% year-on-year respectively, and the average online / offline prices were + 13.32% / + 16.61% year-on-year respectively. The sales growth was relatively stronger; In terms of sales mode, the company’s distribution (including online orders from dealers) / direct sales / export achieved revenue of 1.102122/07 billion yuan respectively, with a year-on-year increase of + 80.33% / + 22.64% / + 2.78% respectively. The proportion of distribution mode revenue increased by 4.31 PCT to 89.58%. The main reasons for the high growth of distribution mode are: 1) the company gradually optimized the dealer team by eliminating the weak and retaining the strong, and provided multidimensional measures such as store design and decoration, product introduction, marketing guidance and after-sales training, Empower and strengthen the operation ability of dealers. In the past 21 years, the company had more than 1300 dealers, which was basically the same as that in the past 20 years, and the single store revenue was significantly optimized; 2) Adhering to Wuxi Online Offline Communication Information Technology Co.Ltd(300959) two wheel drive, the company encourages dealers to place orders online by clarifying channel interests, supports online creation of popular items, and increases brand exposure and store traffic. According to Ovi data, the proportion of Listed Companies in the corporate line in the past 21 years increased rapidly from 4.81 PCT to 11.25%.
Q4’s profitability declined, and the annual cost investment was positive.
The gross profit margin / net profit margin of the company in 21 years were 44.73% / 17.04% respectively, with a year-on-year increase of -0.86 / -3.03pct respectively. Under the background of rising prices of raw materials, the profitability of the company was under pressure. In the past 21 years, the company’s sales / management / Finance / R & D expenses were + 99.94% / + 34.89% / – 39.69% / + 75.51% year-on-year, and the expense rate was 19.25% / 7.92% / – 0.93% / 4.49% year-on-year, with a year-on-year increase of + 2.62 / – 0.84 / + 0.22 / + 0.10pct. The sales and R & D expenses increased significantly, mainly because the company was in the period of reform and actively invested the expenses to seize the market. It is worth noting that the gross profit margin and net profit margin of 21q4 company were 43.96% / 12.83% respectively, with a year-on-year decrease of -4.55 / – 7.54pct respectively. In addition to the rise in the price of raw materials and the increase in R & D expenditure (+ 1.5pct), the company implemented the first equity incentive plan in Q4, and the equity payment expenses increased. Superimposed with the depreciation and amortization of fixed assets, the Q4 management expense rate of the company also increased by about 0.8pct.
Investment advice
The company has advanced technology, solid product strength and profound industry accumulation. In 2021, the company implemented multi-dimensional reform, continuously enhanced organizational operation capacity and continuously released organizational operation efficiency. The alpha attribute is gradually highlighted, superimposed with the strong beta attribute of low penetration and high growth in the integrated stove industry. It is expected that the company will fully benefit and maintain high growth. It is estimated that the net profit attributable to the parent company from 2022 to 2024 will be 260 million yuan, 340 million yuan and 440 million yuan respectively, and the corresponding PE of the current stock price is 25.7x, 19.9x and 15.3xpe respectively. Maintain the “overweight” rating.
Risk tips
Market competition intensifies risks; Risk of price rise of raw materials; The epidemic repeatedly affects the risk of offline sales and cargo transportation; New product development is less than expected risk.
