\u3000\u30 Shaanxi Zhongtian Rocket Technology Co.Ltd(003009) 11 Zhejiang Entive Smart Kitchen Appliance Co.Ltd(300911) )
Performance review
On April 18, Zhejiang Entive Smart Kitchen Appliance Co.Ltd(300911) released the annual report of 2021, and achieved a revenue of 1.23 billion yuan in 2021, a year-on-year increase of + 71.66%; The net profit attributable to the parent company was 210 million yuan, a year-on-year increase of 45.76%, and the deduction of non net profit was 180 million yuan, a year-on-year increase of 45.94%. The performance of the revenue side exceeded expectations, and the performance side met expectations, which was temporarily under pressure due to the rise in the price of raw materials.
Business analysis
On the revenue side, the company achieved a revenue of 1.230 billion yuan in 2021, a year-on-year increase of + 71.66%; Corresponding to Q4, the revenue was 421 million yuan, a year-on-year increase of + 77.82%. From the perspective of sub channels, in terms of offline distribution, the company actively arranges the recruitment of large merchants and takes multiple measures to improve the quality of dealers in parallel. E-commerce channels are rapidly expanding. The company takes Tmall, Jingdong and other integrated e-commerce as main positions, tiktok and other content providers, and according to the annual report, Tmall and Jingdong sales growth rate is 212% and 193% respectively in 21 years. In addition, the company actively improves the comprehensive layout of Ka, home decoration, engineering and sinking channels.
On the profit side, the company realized a net profit attributable to the parent company of 210 million yuan in 2021, a year-on-year increase of 45.76%, and a deduction of non net profit of 180 million yuan, a year-on-year increase of 45.94%. Corresponding to Q4, the net profit attributable to the parent company was 54 million yuan, a year-on-year increase of + 12.03%, and the deduction of non net profit was 30 million yuan, a year-on-year decrease of – 20.02%. Specifically, the net profit margin attributable to the parent company of Q4 was 12.83%, down 7.5pct year-on-year, of which the gross profit margin and period expense rate were – 4.5pct and + 4.4pct year-on-year respectively. Affected by the rising cost of raw materials, the gross profit margin of Q4 sales was 43.96%, with a year-on-year increase of -4.5pct. In the past 21 years, the company intensified its marketing efforts, and the sales expense rate was 19.25%, with a year-on-year increase of + 2.7pct. Q4 company’s sales / management / R & D / financial expense ratio was – 1.8pct / + 0.8pct / + 1.5pct / + 3.9pct respectively year-on-year.
Profit forecast & investment suggestions
The logic of improving the penetration rate of the integrated stove industry continues to be verified. As a first-line echelon, the company is expected to fully benefit from the high growth dividend of the industry. The company has strong product power, the effect of channel and organizational change continues to be reflected, and the revenue is expected to continue to increase. We estimate that the company’s revenue from 2022 to 2024 will be 1.88 billion yuan, 2.65 billion yuan and 3.68 billion yuan respectively, with a year-on-year increase of 53.0%, 40.7% and 38.8% respectively. The company’s net profit attributable to the parent company from 2022 to 2024 is expected to be 300 million yuan, 410 million yuan and 560 million yuan respectively, with a year-on-year increase of 45.0%, 35.2% and 37.0% respectively. EPS is 2.81, 3.80 and 5.21 respectively. The current share price corresponds to PE of 22.2x, 16.4x and 12.0x respectively from 2022 to 2024, maintaining the “overweight” rating.
Risk tips
The terminal consumption is weak, and the penetration rate is lower than expected; The risk of intensified industry competition; Risk of rising raw material prices.
