\u3000\u3 China Vanke Co.Ltd(000002) 508 Hangzhou Robam Appliances Co.Ltd(002508) )
Event: on April 19, 2022, Hangzhou Robam Appliances Co.Ltd(002508) released the 2021 annual report and the first quarterly report of 22 years. In 2021, the company realized an operating revenue of 10.148 billion yuan, a year-on-year increase of + 24.84%; The net profit attributable to the parent company was 1.332 billion yuan, a year-on-year increase of – 19.81%. In 22 years, Q1 company realized an operating revenue of 2.086 billion yuan, a year-on-year increase of + 9.32%; The net profit attributable to the parent company was 368 million yuan, a year-on-year increase of + 2.47%. It is proposed to pay a cash dividend of RMB 5 per 10 shares, with a dividend rate of 35.65% and a dividend rate of 1.64%.
The position of traditional kitchen electric faucets is stable, and new categories such as dishwashers and water heaters are increasing. In 21 years, Q4 company realized an operating revenue of 3.077 billion yuan, a year-on-year increase of + 22.96%; The net profit attributable to the parent company was -11 million yuan, with a year-on-year decrease of – 102.00%, which was mainly affected by the provision for bad debt receivables of 778 million yuan from Evergrande and other companies. Excluding the impact of credit impairment of 765 million yuan, the net profit attributable to the parent company in Q4 of the company in 21 years is about 642 million yuan, a year-on-year increase of about + 19.3%, and the net profit attributable to the parent company in 21 years is about + 19.5%. In terms of products, in the past 21 years, the revenue of the company’s traditional advantageous categories of range hoods and gas stoves was + 18.73% and + 27.25% year-on-year. The market share of online and offline channels remained at the forefront, accounting for about 72% of the total revenue. The company fully demonstrated its resilience in the environment of weak overall market growth; The growth rate of new products such as integrated steaming and baking machines, dishwashers and water heaters was higher, with a year-on-year increase of + 71.26%, + 101.32% and + 172.57%, which resonated with the prosperity of the industry. In terms of sales channels, the growth rates of the company’s consignment, distribution, direct sales and engineering channels in the past 21 years were + 19.23%, + 9.85%, + 39.13% and + 6.95% respectively.
The gross profit margin fell year-on-year due to the impact of raw materials. The gross profit margin for the whole year of 21 was 52.35%, with a year-on-year increase of -3.81pct; The net interest rate was 13.29%, year-on-year -7.47pct. Q4 gross profit margin was 43.73%, year-on-year -10.44pct; The net interest rate was -0.30%, with a year-on-year increase of -22.02pct. The sharp decline in Q4 gross profit margin was mainly due to: 1) the rise in raw materials and labor costs; 2) the adjustment of accounting standards included transportation expenses in operating costs, and the dimension of gross sales difference was – 3.26% year-on-year; The net interest rate is mainly affected by the large amount of bad debt provision. In terms of expense ratio, without considering the change of caliber, the annual sales, management and R & D expense ratio is divided into 24.19%, 3.58 and 3.61%, respectively -4.81, + 0.15 and + 0.06pct year-on-year; Q4 sales, management and R & D expense rates were 13.42%, 3.98 and 4.35%, respectively -7.18, – 0.17 and + 0.19pct year-on-year. The gross profit margin of Q1 in 22 years was 52.56%, with a year-on-year increase of -4.78pct; The net profit margin was 17.54%, with a year-on-year increase of -1.46pct. The decline of gross profit margin was also affected by the rise of raw material cost and the adjustment of accounting caliber. The gross sales difference was -1.60pct year-on-year.
Improve the inventory turnover rate and prepare raw materials in advance to deal with risks. 1) In 21 years, the company’s cash + other current assets totaled 3.806 billion yuan, a year-on-year increase of – 2.94%; Contract liabilities + other current liabilities totaled RMB 1.151 billion, a year-on-year increase of + 6.96%; Notes and accounts receivable totaled 2.929 billion yuan, a year-on-year increase of + 3.06%; At the end of the year, the inventory was 1.772 billion yuan, a year-on-year increase of + 27.86%. In order to cope with the rise of raw materials, the company prepared goods in advance, and the inventory of raw materials and semi-finished products was + 79.57% and + 105.71% respectively. 2) In terms of turnover, the company’s inventory turnover days in 21 years were -20.09 days year-on-year, and the inventory turnover rate increased significantly; The turnover days of accounts receivable were + 7.83 days year-on-year. 3) In 21, the net operating cash flow of the company was 1.365 billion yuan, a year-on-year increase of -11.18%; Q4 net operating cash flow was 128 million, a year-on-year increase of – 39.05%, mainly affected by the debt default of some companies.
Continue to promote R & D, channel and brand construction and consolidate core competitiveness. At the R & D end, the company introduced high-level technical talents and improved the construction of technical talent echelon. In the 21st year, the company applied for 1093 patents, including 274 invention patents and 9 leading standard formulation. On the channel side, the company continued to deepen its high-end positioning, coordinated multi-channel development, promoted the construction of flat marketing, improved channel efficiency, and steadily promoted the process of brand going to sea. The revenue of overseas regions was + 71.80% year-on-year. On the brand side, the company hired Xu Kai as the spokesperson for Hangzhou Robam Appliances Co.Ltd(002508) new kitchen, carried out marketing activities through various channels, sponsored the Asian Games and variety shows, and further improved the brand influence and user stickiness. Consolidate the leading position, strengthen the breakthrough of new categories and new technologies, and comprehensively lead the development of the industry.
Profit forecast: the company has a solid leading position in the industry of traditional range hoods and gas stoves. The introduction of new low permeability and high growth track products such as integrated stoves and dishwashers is expected to open up space for future revenue growth. The company has made multi-point efforts in R & D, marketing, brand and production, and its steady development can be expected in the future. We estimate that the company’s operating revenue in 22-24 years will be 11.694/13.473/15.502 billion yuan respectively, with a year-on-year increase of + 15.2% / + 15.2% / + 15.1% respectively; The net profit attributable to the parent company was 2.209/25.53/2.940 billion yuan, with a year-on-year increase of + 65.8% / + 15.6% / + 15.1% respectively, and the corresponding PE was 13.07/11.31/9.82 times.
Risk factors: sharp rise in raw material prices, changes in real estate policies, repeated outbreaks in China, and less than expected development of new products.
