\u3000\u30 Shaanxi Zhongtian Rocket Technology Co.Ltd(003009) 11 Zhejiang Entive Smart Kitchen Appliance Co.Ltd(300911) )
Core view
The annual revenue and profit increased rapidly, and the performance in the fourth quarter was under pressure. In 2021, the company achieved a revenue of 1.230 billion / + 71.66%, a net profit attributable to the parent company of 210 million / + 45.76%, and a net profit not attributable to the parent company of 180 million / + 45.94%. In the fourth quarter, the revenue was 421 million / + 77.82%, the net profit attributable to the parent was 54 million / + 12.03%, and the net profit not attributable to the parent was 30 million / - 20.02%. The company's annual revenue and profit increased beautifully, with the fastest growth among the top four integrated stove companies; Q4 company's revenue still has strong growth, but the profit is negatively affected by the cost of raw materials, and the profit is slightly under pressure.
Strengthen the construction of all channels, empower dealers, build brand voice and realize fine management. The company continued to expand diversified channels, fully supported the development of dealers, vigorously assisted dealers to settle in Ka, sinking, home decoration, engineering and other channels, expanded sales contact, strengthened dealers' pre-sales, in-sales and after-sales ability through store design, product introduction, marketing guidance and after-sales training, and superimposed the screening mechanism of survival of the fittest, which greatly improved the quality and ability of dealers. In 2021, the company's distribution channels increased by 80.3% to 1.1 billion, which is the main driving force of the company's growth; Although the number of dealers remained at more than 1300, the delivery volume of a single dealer increased by 80% year-on-year to about 850000. While building the brand image by upgrading the store image and services, the company has also built a diversified and all-round promotion and communication matrix with new Internet media as the core, television, large transportation and outdoor, optimized the accurate transformation of digital media and continuously improved the brand volume.
In terms of management, the company established a big data operation center, took the lead in building an enterprise level big data operation platform in the industry, and built a global data management system; Carry out special cost reduction work in five key aspects of operating costs, and continuously improve the level of operation and management. In 2021, the company's integrated stove revenue increased by 75.1% to 1.13 billion. The annual profit is affected by the increase of sales expense investment, and the Q4 raw material cost and financial expenses are greatly dragged down.
Although affected by the rising price of raw materials, the company's gross profit margin decreased only slightly by 0.9pct to 44.7% year-on-year in 2021 through measures such as raising prices and reducing costs; Q4 was relatively affected by raw materials, and the gross profit margin decreased by 4.5pct to 44.0%. The company's annual publicity fees and conference promotion fees doubled, and the annual sales expense rate increased by 2.7pct to 19.3%; The rate of administrative expenses decreased from 0.9pct to 3.4%, and the rates of financial and R & D expenses increased by 0.2 and 0.1pct. The sales / management / R & D / financial expense ratio of Q4 company is - 1.8 / + 0.8 / + 1.5 / + 3.9pct respectively, and the large change of financial expense ratio is mainly due to the adjustment of financial income into investment income. The annual net interest rate of the company is 17.0% / - 3.0pct, which is mainly affected by sales expenses; Q4 was affected by the decline in gross profit margin and other income, and the net profit margin decreased by 7.5pct to 12.8%.
Risk warning: industry competition intensifies; The price of raw materials has risen sharply; Channel development was less than expected.
Investment suggestion: raise the profit forecast and maintain the "buy" rating.
Considering the strong revenue growth and the continuous increase in the proportion of high-end products under the company's omni-channel expansion, the profit forecast is raised. It is estimated that the net profit attributable to the parent company will be 290 / 3.8 / 490 million from 2022 to 2024 (the previous value was 280 / 3.4 / 430 million), with a growth rate of 36.9% / 32.9% / 27.3%; Diluted EPS = 2.65/3.53/4.49 yuan, corresponding to PE = 23 / 18 / 14x, maintaining the "buy" rating.
