\u3000\u3 China Vanke Co.Ltd(000002) 508 Hangzhou Robam Appliances Co.Ltd(002508) )
Core view
Event: the company released the annual report of 2021 and the first quarterly report of 2022. In 2021, the annual operating revenue was 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%; It is proposed to distribute a cash dividend of 5 yuan (including tax) for every 10 shares. In 2022q1, the operating revenue was 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%.
Comments:
The leading position of kitchen electricity industry is stable, and the growth of traditional and emerging categories is beautiful. In terms of categories, the annual revenue of range hood / gas stove in the company’s traditional categories was + 18.73% / + 27.25% respectively year-on-year, with the boss brand range hood taking the first place in both online and offline markets; Among the emerging categories, the revenue of integrated steaming and baking machine / integrated stove / dishwasher was + 71.26% / + 25.97% / + 101.32% respectively year-on-year. The market share of online and offline retail sales of integrated steaming and baking machine and embedded products of the company was among the top three in the industry. Under the background of slow overall growth of kitchen electricity market, the revenue of all categories of the company achieved good growth, highlighting strong development toughness. With the large volume of new products such as integrated stove and intelligent kitchen electricity, The company’s performance is expected to continue to grow.
Relevant bad debt reserves of Evergrande are fully accrued, and young people will be ready in 2022. The company’s annual revenue exceeded the 10 billion mark for the first time, but its performance fell year-on-year, mainly due to the breach of due commercial acceptance bills by some customers of the company’s fine decoration business, and the provision for bad debts was about 778 million yuan throughout the year, including about 660 million yuan related to Evergrande. Excluding the impact of bad debt provision, we calculate that the net profit attributable to the parent company will exceed 1.9 billion in 2021, with a year-on-year increase of about 20%, and the operating performance is in line with expectations.
The profit side of 2021 is under pressure, and the profitability of 2022q1 is improved month on month. In 2021, affected by the rise of raw material prices and the accounting adjustment of transportation expenses, the gross profit margin of the company increased from – 3.8pct to 52.35% year-on-year, and the sales / management / R & D expense ratio increased from – 2.2pct / – 0.1pct / – 0.1pct to 24.19% / 3.58% / 3.61% respectively. The net profit margin increased from – 7.3pct to 13.12% year-on-year. The gross profit margin of 2022q1 company was 52.56%, with a year-on-year ratio of -4.8pct and a month on month ratio of + 8.83pct; The net interest rate was 17.63%, which was -1.2pct year-on-year and +18pct month on month. The profit level stabilized and rebounded.
Investment suggestion: the value of leading kitchen and electric enterprises is prominent. Young people will be installed in 2022 and maintain the “buy” rating. The company’s traditional categories are in the leading position in the industry, and emerging categories such as integrated stoves provide strong development power. With the development trend of industry systematization and high-end, the company’s performance is expected to continue to grow steadily. Considering the disturbance of the short-term “covid-19” epidemic, we fine tune the company’s profit forecast, It is estimated that the net profit attributable to the parent company from 2022 to 2024 will be RMB 22.25/26.21/3.035 billion respectively (the original predicted value of net profit attributable to the parent company in 2022 / 2023 is RMB 2.324/2.671 billion respectively), corresponding to the current market value PE of 13 / 11 / 10 times respectively, maintaining the “buy” rating.
Risk tip: real estate policy regulation risk, repeated epidemic situation in China, fluctuation of raw material price, etc. Profit forecast
