\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. In 2021, the company achieved an operating revenue of 10.148 billion yuan, an increase of 24.84% year-on-year; The net profit attributable to the parent company was 1.332 billion yuan, a year-on-year decrease of 19.81%, of which the operating revenue of Q4 in a single quarter was 3.077 billion yuan, a year-on-year increase of 22.96%, and the net profit attributable to the parent company was – 11 million yuan, a year-on-year decrease of 102%. In 2022q1, the company realized an operating revenue of 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%. In 2020, the company plans to distribute cash dividends of RMB 5.00 (including tax) for every 10 shares to all shareholders, with a total distribution of RMB 472 million and a dividend rate of 35.6%.
The status of traditional categories is stable, and the number of emerging categories is increasing. In 2021, the company’s revenue increased by 24.84% year-on-year, of which the revenue of traditional range hoods and gas stoves was 4.88 billion and 2.44 billion yuan, with a year-on-year increase of 18.73% and 27.25%, which was higher than the growth rate of the industry. According to the data of Aowei cloud network, the retail sales of range hoods and gas stoves increased by 4% and 2% year-on-year in 2021. The market share of offline retail sales of range hoods and gas stoves of the company was the first in the industry, and the market share of online retail sales was the first and third. In addition to the steady growth of traditional categories, emerging categories also achieved high growth. During the reporting period, the revenue of the company’s integrated steaming and baking machine and dishwasher was 647 million yuan and 451 million yuan, with a year-on-year increase of 71.26% and 101.32%. By channel, the company’s direct channel revenue was 4.647 billion yuan, a year-on-year increase of 39.13%, the proportion increased by 4.71 PCT to 45.8%, and the engineering channel revenue was 1.948 billion yuan, an increase of 6.95%, and the proportion decreased by 3.25 PCT to 19.48%. In 2022q1, the company’s revenue maintained a steady growth trend, with a year-on-year increase of 9.32%, better than the industry. According to ovicloud, the offline retail sales of range hoods and gas stoves in 2022q1 decreased by 19.93% and 16.64% year-on-year, and the online retail sales changed by 4.36% and – 0.05% year-on-year.
Large provision for bad debts dragged down the company’s performance. In 2021, the company’s gross profit margin was 52.35%, a year-on-year decrease of 3.81 PCT, of which the gross profit of range hood and gas stove was 53.65% and 57%, a year-on-year decrease of 5.94 and 2.14 PCT, and the gross profit margin of 22q1 company was 52.56%, a year-on-year decrease of 4.78 PCT. We believe that the main reasons for the decrease of gross profit are the increase of raw material price and the change of accounting standards (transportation expenses are adjusted to operating costs). In 2021, the company’s sales, management, finance and R & D expenses changed by 14.32%, 22.48%, -6.98% and 20.66% year-on-year, and the expense rates were 24.19%, 3.58%, -1.38% and 3.61% respectively, with year-on-year changes of -2.22, -0.07, 0.47 and -0.12pct. Due to the default of due commercial acceptance bills by some fine decoration business customers, the company’s large amount of bad debt provision dragged down the company’s performance. In 2021, the total amount of bad debt provision for individual receivables of the company was 778 million yuan, of which 660 million yuan was withdrawn by Evergrande group. Overall, the company’s net profit margin on sales in 2021 and 2022q1 were 13.29% and 17.54% respectively, with a year-on-year decrease of 7.47 and 1.46pct.
Investment suggestion: the company’s traditional products range hood and gas stove have obvious advantages. With the gradual increase of new products such as integrated stove and dishwasher, the company’s performance is expected to grow steadily. It is expected that the company’s net profit attributable to the parent company from 2022 to 2024 will be 2.183, 2.498 and 2.873 billion yuan, and the corresponding EPS will be 2.30, 2.63 and 3.03 yuan, maintaining the “recommended” rating.
Risk tip: the risk of fluctuations in the real estate market, the risk of changes in the price of raw materials, and the risk of intensified industry competition.
