\u3000\u3 China Vanke Co.Ltd(000002) 508 Hangzhou Robam Appliances Co.Ltd(002508) )
Event: Hangzhou Robam Appliances Co.Ltd(002508) released the annual report of 2021 and the first quarterly report of 2022. The company achieved revenue of 10.15 billion yuan in 2021, yoy + 24.8%; Achieved a performance of 1.33 billion yuan, yoy-19.8%. Converted into 2021q4, the revenue in a single quarter was 3.08 billion yuan, yoy + 23.0%; Due to the provision for bad debts, the company achieved a performance of – 10 million yuan, compared with 540 million yuan in the same period of last year. 2022q1 achieved revenue of 2.09 billion yuan, yoy + 9.3%; Achieved performance of 370 million yuan, yoy + 2.5%. We believe that the company took the initiative to reduce the orders of large real estate customers and reduce operational risks. Due to the provision for bad debts and Q4 performance loss, the capital market has expected it. Affected by the epidemic and rising costs, the growth rate of Q1 revenue and performance slowed down.
Affected by the epidemic, the growth rate of Q1 revenue slowed down: the main sales channels of the company in 2022q1 are as follows: 1) the revenue of offline retail + innovative channels in 2022q1 increased slightly. 2) Consumers prefer online shopping, and Q1 e-commerce revenue is growing rapidly. 3) In order to reduce operational risks, the company reduced engineering orders from large real estate developers. Boss Q1 project channel revenue fell year-on-year. In 2021h1, the sales area of newly-built commercial housing in China is yoy + 29.4%. The interval from residential sales to kitchen power demand is four quarters, which will drive the sales of Hangzhou Robam Appliances Co.Ltd(002508) 2022h1. However, due to the impact of the epidemic, we expect the demand to be released later.
Rapid growth of new kitchen appliances: according to the announcement, in 2021, the revenue growth of dishwashers and integrated steaming and baking machines of the company was 101.3% / 71.3% respectively. The total revenue of the two products accounted for 10.8% of the total revenue, with a year-on-year ratio of + 3.4pct Hangzhou Robam Appliances Co.Ltd(002508) attaches importance to the sales of new products such as integrated steaming and baking machines and dishwashers, and is also actively launching new products in line with the usage habits of Chinese consumers and gaining market recognition (for details, see the in-depth report “year of change, reexamine the boss’s” fickleness “and the report” layout of new products, from “defense” to “attack”).
The difference between gross profit margin and sales expense rate has declined: according to the announcement, the difference between gross profit margin and sales expense rate of 2021q4 and 2022q1 companies is – 3.2 / – 1.6pct year-on-year respectively, mainly due to the obvious rise in raw material prices and profit pressure. According to the company’s new product launch, the boss has launched a number of new products in March, including integrated stove, dishwasher, etc., and the profitability is expected to improve in the future.
Investment suggestion: as a high-end kitchen electricity leader, Hangzhou Robam Appliances Co.Ltd(002508) is good at responding to changes in market demand and adjusting its own products, channels and other business strategies in time. We believe that this excellent emergency management ability is the basis for the stable growth of the company’s performance. We expect that the EPS of Hangzhou Robam Appliances Co.Ltd(002508) from 2022 to 2023 will be 2.19/2.56 yuan respectively, maintaining the investment rating of buy-a. the six-month target price is 35.04 yuan, corresponding to 16 times the dynamic P / E ratio in 2022.
Risk tip: real estate sales fell sharply and the market acceptance of embedded new products was low
