\u3000\u3 China Vanke Co.Ltd(000002) 677 Zhejiang Meida Industrial Co.Ltd(002677) )
Event: on April 19, 2022, Zhejiang Meida Industrial Co.Ltd(002677) released the first quarterly report of 2022. Q1 company achieved an operating revenue of 413 million yuan, a year-on-year increase of + 12.15%; The net profit attributable to the parent company was 122 million yuan, a year-on-year increase of + 20.92%.
Q1 performance is in line with expectations, and the industry affected by the epidemic is under short-term pressure. Q1 performance basically met expectations, and the growth rate was significantly improved compared with Q4 in 21 years. According to the industry online data, the output and sales volume of the integrated stove industry from January to February were + 8.1% and + 11.4% year-on-year respectively, of which the production and sales volume of Meida integrated stove were + 12.2% and + 8.4% respectively, which matched the growth rate of the industry. Q1 due to the impact of the epidemic all over the country, the production, sales, logistics and installation of the integrated stove industry have been hit to a certain extent, which will be under pressure in the short term. It is expected that the relevant situation will improve after the recovery of the epidemic and the marginal improvement of the real estate industry. Q1's online sales market share has increased. According to the data of ovicloud, the listing share of Meida brand integrated kitchen line is + 2.82pct year-on-year, reflecting the further deepening of the company's online channel layout.
The gross profit margin declined slightly and the cost structure was optimized. Q1 company's gross profit margin was 49.77%, year-on-year -1.34pct; The net profit margin was 29.41%, with a year-on-year increase of + 2.13pct, and the gross sales difference was basically the same. The gross profit margin showed a slight decline or mainly because: 1) the cost of raw materials in Q1 rose sharply, 2) the product structure was adjusted. According to Aowei data, the average price of Midea Q1 Wuxi Online Offline Communication Information Technology Co.Ltd(300959) was - 303 yuan and - 185 yuan respectively, and the market share of offline channels was significantly increased in the price segment below 10000 yuan. From the perspective of expense rate, the sales expense rate in the first quarter decreased year-on-year. The Q1 sales, management and R & D expense rates were 11.08, 4.74 and 3.29%, year-on-year -1.27, + 0.27 and -0.29pct.
Operating cash flow improved significantly. 1) Q1 company's monetary capital was 704 million yuan, a year-on-year increase of + 43.31%, and its asset liquidity improved; Contract liabilities + other current liabilities totaled 137 million yuan, a year-on-year increase of + 44.36%, and the income to be released increased; Notes and accounts receivable totaled 71 million yuan, a year-on-year increase of + 182.26%; The inventory was 109 million yuan, a year-on-year increase of + 31.05%. 2) From the perspective of turnover, Q1 company's inventory turnover days are + 9.53 days and accounts receivable turnover days are + 3.71 days year-on-year. 3) The net operating cash flow of Q1 company was 73 million yuan, a year-on-year increase of + 280.68%, showing a significant improvement trend.
Profit forecast and investment rating: Although the integrated stove industry is under pressure in the short term, its long-term penetration is expected to continue to increase rapidly Zhejiang Meida Industrial Co.Ltd(002677) as a leader in the industry, we attach importance to promoting the construction of omni-channel and dual brands and the iterative expansion of products, develop our strengths and make up for our weaknesses, and our long-term competitiveness is stable. We estimate that the company's operating revenue in 22-24 years will be RMB 2.549/29.84/3.447 billion respectively, with a year-on-year increase of + 17.8% / + 17.0% / + 15.5% respectively; The net profit attributable to the parent company was RMB 788 / 927 / 1074 million, with a year-on-year increase of + 18.5% / + 17.7% / + 15.8% respectively, and the corresponding PE was 11.42/9.70/8.38 times. Maintain the "buy" rating.
Risk factors: the price of raw materials continues to rise, the competition in the integrated stove industry intensifies, the policy changes in the downstream real estate industry, the company's new product launch is less than expected, the company's channel development is less than expected, and the epidemic situation in China is repeated.
