Biyi shares (603215)
Event: Biyi issued its annual report for 2021. In 2021, the company realized revenue of 1.63 billion yuan, yoy + 40.4%; Achieved performance of 120 million yuan, yoy + 13.2%. After conversion, the revenue of 2021q4 in a single quarter was 430 million yuan, yoy + 8.2%; Achieved performance of RMB 30 million, yoy-6.0%. Looking forward to the follow-up, as the company continues to update the iterative air fryer and explore new customers, the revenue is expected to maintain rapid growth.
Air fryer drives the rapid growth of the company’s revenue: in 2021, the company’s air fryer revenue was yoy + 62.1%. In 2021, the growth rate of the company’s air fryer was accelerated, mainly because 1) the epidemic situation catalyzed the demand of Chinese and foreign consumers for healthy cooking, and the air fryer industry maintained a high boom. According to Euromonitor and Ovi data, the global sales volume of air fryers exceeded 33 million units in 2021, with a year-on-year increase of 13%; 2) With excellent product strength and manufacturing capacity, the company has been recognized by the world-famous small household appliance brands, and the orders have increased rapidly. In 2021, the company’s sales to Philips reached 400 million yuan, yoy + 555.0%. According to our calculation, the penetration rate of air fryer in American households is less than 30%, and that in China and Western Europe is less than 10%. With consumers’ pursuit of oil-free and healthy diet, the popularity of air fryer has great room for improvement. In 2022, the company developed an intelligent air fryer that can automatically identify the weight of food and set the time; Two air fryers for the Chinese market have been developed for Philips. In the future, the company’s orders for air fryers are expected to maintain rapid growth.
The gross profit margin of Q4 decreased in a single quarter: the gross profit margin of Q4 company was 16.0%, year-on-year -5.2pct. Q4 company’s gross profit margin decreased significantly, mainly due to 1) the sharp rise in the price of raw materials. The company’s main raw materials include aluminum, plastics, electronic components, etc. Wind data shows that during 2021q4, Shanghai copper index, Shanghai aluminum index and plastic index yoy + 29.0% / + 31.7% / + 7.3%; 2) The US dollar continued to fall against the RMB. The company’s products are mainly sold to overseas markets such as the United States and the United Kingdom, and the settlement currency is mainly US dollars. The exchange rate of USD against RMB in 2021q4 fell by 3.4% year-on-year.
Q4’s single quarter profitability decreased slightly: Q4’s net profit margin was 7.7%, year-on-year -1.2pct. We believe that the year-on-year decrease in net profit margin of Q4 company is less than that in gross profit margin, mainly because: 1) the year-on-year decrease in the exchange rate of US dollar against RMB in 2021q4 is 2.5pct narrower than that in 2020q4, and the company’s exchange loss is reduced. The financial expense ratio of Q4 company was 1.9%, with a year-on-year increase of -1.4pct; 2) The company strengthened the cost control. Q4 company’s sales expense ratio was 1.2%, year-on-year -0.9pct; 3) The government subsidies received by the company increased. Q4 company’s non operating income was + 2.49 million yuan year-on-year.
Net operating cash flow in Q4 single quarter increased year-on-year: the company’s net operating cash flow in Q4 single quarter increased year-on-year + 20 million yuan, mainly because 1) the company’s customer structure was further optimized, and the sales of customers with relatively short accounting periods such as Philips grew rapidly. Q4 company received cash from selling goods and providing labor services + 70 million yuan year-on-year; 2) The company received increased government subsidies. Q4 company received other cash related to operating activities + 10 million year-on-year.
Investment suggestion: Biyi is in the leading echelon of small household appliances OEM in heating kitchen, and has strong R & D and design ability, cost control ability and production delivery ability. In recent years, the company has successively developed Philips, sharkninja, Zhejiang Supor Co.Ltd(002032) and other well-known small household appliance enterprises at home and abroad. The company actively expands its own brand business through e-commerce channels, which is expected to open a new growth curve. We expect that the company’s EPS from 2022 to 2024 will be 0.85/1.18/1.61 yuan respectively, covering the investment rating of Buy-A for the first time.
Risk tip: the price of raw materials rises sharply and the exchange rate changes sharply.
