\u3000\u30 Shaanxi Zhongtian Rocket Technology Co.Ltd(003009) 11 Zhejiang Entive Smart Kitchen Appliance Co.Ltd(300911) )
Event:
On April 18, 2022, Zhejiang Entive Smart Kitchen Appliance Co.Ltd(300911) released the annual report of 2021. In 2021, the company achieved a revenue of 1.230 billion yuan (+ 71.66%); The net profit attributable to the parent company was 210 million yuan (+ 45.76%). 2021q4 single quarter revenue of 412 million yuan (+ 77.82%); The net profit attributable to the parent company was 54 million yuan (+ 12.03%). It is proposed to terminate the R & D center and information construction project, with an original investment of 95.031 million yuan.
Key investment points:
The volume and price of integrated stoves increased simultaneously, and the revenue increased beautifully in 2021. 1) Integrated stoves: the annual revenue in 2021 was 1.126 billion yuan (+ 75.14%), accounting for 91.59%, mainly due to the active introduction of high-end and intelligent products, and the volume and price of integrated stoves increased. According to the data of ovicloud, the online sales volume / sales volume of Yitian integrated stove in 2021 was the industry leader, with sales volume of 65700 sets (+ 102%), sales volume of 664 million yuan (+ 129%), and average price of 10108 yuan (+ 13.32%); 2) Other products: the annual revenue was 103 million yuan (+ 41.12%), accounting for 8.41%, mainly due to the high growth of new categories such as dishwashers and integrated sinks.
2021q4 company’s profitability is under short-term pressure. 1) Gross profit margin: the gross profit margin of 2021q4 is 43.96% (-4.55pct). Although the high-end products are steadily promoted and the product structure is optimized, the price rise of major raw materials brings cost pressure; 2) Net profit margin: the net profit margin of 2021q4 is 12.83% (- 7.54%), with a decrease greater than the gross profit margin. The cost side is under pressure, mainly due to the increase of R & D efforts and the increase of share based payment and depreciation and amortization expenses. The sales / management / R & D expense rate of 2021q4 is 19.06% / 4.91% / 5.42% respectively, with a year-on-year decrease of -1.78 / + 0.83 / + 1.49pct respectively.
Omni channel layout, with a high increase in distribution volume in 2021. 1) Distribution channels: the annual revenue was 1.102 billion yuan (+ 80.33%), accounting for 89.58%, mainly due to the optimization of the distribution team, the upgrading of terminal stores and the increase of online delivery; 2) Direct sales channels: the annual revenue was 122 million yuan (+ 22.64%), accounting for 9.88%, mainly due to the power of e-commerce channels, the layout of Direct stores in key regions, the establishment of high-end brand image, and the smooth entry into Ka, home decoration, engineering and other channels. As of 2021, the number of online stores in sinking channels such as JD home appliances and tmall premium products settled in and dealer stores totaled 3500 +, and the number of cooperative decoration enterprises was 5200 +.
With the rapid development of the integrated stove industry, the brand influence has gradually increased, the construction of all-round channel network has increased the layout, covered for the first time, and given a “buy” rating. With the favorable policies of the real estate industry and the improvement of the prosperity of the kitchen electricity industry, the integrated stove category is expected to benefit again, and the company’s revenue and performance may be further improved. With the gradual improvement of channels and the upgrading of high-end and intelligent products, the company’s brand image will be more deeply rooted in the hearts of the people. It will be covered for the first time and given a “buy” rating. We predict that the net profit attributable to the parent company from 2022 to 2024 will be RMB 288 / 376 / 512 million, corresponding to EPS of RMB 2.66/3.48/4.74, and the current share price corresponding to PE of 22.99/17.59/12.92 times.
Risk tips: repeated covid-19 epidemic, price fluctuation of main raw materials, less than expected development of new business, intensified market competition, less than expected development of new channels, etc
