\u3000\u3 China Vanke Co.Ltd(000002) 508 Hangzhou Robam Appliances Co.Ltd(002508) )
Events
The company issued the annual report of 2021 and the report of the first quarter of 2022, and disclosed that the annual operating revenue was 10.148 billion yuan / + 24.84%; Net profit attributable to parent company: 1.332 billion yuan / – 19.81%; The net profit deducted from non return to parent is 1.277 billion yuan / – 19.42%; The basic earnings per share is 1.41 yuan / – 19.43%. The operating revenue of Q1 in 2022 is 2.086 billion yuan / + 9.32%; Net profit attributable to parent company: 368 million yuan / + 2.47%; Deduct the net profit not attributable to the parent company of RMB 336 million / + 4.27%; The basic earnings per share is 0.38 yuan / + 2.49%.
Key investment points
Revenue growth has reached 10 billion, and high-end transformation ensures profit space: the company’s total revenue in 2021 was 10.148 billion yuan, with a double-digit year-on-year growth of 24.84%, officially reaching 10 billion. The overall gross profit margin was 52.35%, with a year-on-year decrease of 3.81 percentage points, and the net profit attributable to the parent company was 1.332 billion yuan, with a year-on-year decrease of 19.81%. In addition to the impact of the adjustment of accounting standards, the main reason for the profit pressure was that the price of raw materials related to household appliances began to rise at the end of 2020. With the arrival of inventory consumption and new procurement cycle, the impact of rising material costs gradually appeared. The operating profits in the four quarters of last year were + 47.38% / + 15.7% / + 6.3% / – 109.83% year-on-year respectively, Among them, the larger growth rate of Q1 is due to the small base generated by the year-on-year – 23.9% of 20q1, while Q4 is due to the significant pressure of + 50.97% on operating costs, resulting in a sharp decline in operating profit from the growth rate of only 5.87% in 20q4.
In terms of categories, traditional smoke stoves contribute 72.13% of the company’s total revenue and 62.75% of its gross profit. According to Aowei data, in 2021, the company’s traditional smoke range products achieved an increase in retail sales under the condition of a decline in retail sales, including 21.5 million range hoods / – 6% and 33.3 billion yuan / + 4%; The overall retail volume of gas stoves is 25.43 million units / – 9%, and the retail volume is 19.1 billion yuan / + 2%. Behind it is the strategic transformation of brand product. On the one hand, the company has been committed to building high-end brands for many years. Under the background of the continuous rise of raw material prices, promoting the transformation of product structure to high-end also helps to maintain sufficient profit space. For example, the average online price of range hood in 2021 was 1550 yuan, a year-on-year increase of 56 yuan, the average offline price was 3733 yuan, a year-on-year increase of 313 yuan, and the brand premium was realized.
From integration and systematization to the overall kitchen electricity market: in recent five years, the contribution of emerging categories dominated by dishwashers and embedded steaming and baking to the company’s revenue and gross profit has increased year by year, and the proportion of revenue and gross profit in 2021 has increased by 2.02pct/5.01pct year-on-year respectively. Behind the emerging categories are new groups and preferences for integration and systematization. Through the research and development of integrated products, the company realizes multi-functional integration and space utilization optimization, which is expected to obtain a larger potential market and new growth points. According to orvey data, the overall market retail sales of dishwashers in 2021 were 9.96 billion yuan / + 14.4%, 1.952 million units / + 1.7%, 1.91 billion yuan / + 20.6% in 2022q1 and 350000 units / + 7.1%. The market scale further accelerated the expansion, of which the growth rate of integrated dishwashers reached 77%, far exceeding the overall growth rate. According to orvey’s calculation, the cumulative sales volume of dishwashers in China is about 10 million units (including projects), and the penetration rate is about 2 units / 100 households, which is far lower than that in Japan, Italy and other countries. The development potential of subdivided fields is huge, and there is no local leader at present.
The growth rate of 22q1 slowed down, and the growth rate needs H2: the operating revenue in the first quarter of this year was 2.086 billion yuan, a year-on-year single digit increase of 9.32% in 21q1, and the growth rate slowed down. On the one hand, the epidemic situation has been repeated everywhere. The epidemic situation in Guangdong since March and the epidemic situation in Shanghai since April have affected the sales of South China and East China, and the sales revenue of these two regions accounted for 12.94% and 46.31% respectively in 2021. Therefore, it is judged that the revenue of 22q2 will also be dragged down, and the blocked demand is expected to be delayed; On the other hand, the real estate chain was cold in the early stage. Until March, the two sessions and the central financial conference have released clear easing signals, and local governments and banking systems have continuously issued corresponding policies. According to the past situation, market confidence has generally been preliminarily repaired within 1-2 months. Overall, the company’s performance growth is expected to pick up in the second half of this year.
Investment suggestion: Hangzhou Robam Appliances Co.Ltd(002508) has been deeply engaged in the field of kitchen heating for more than 40 years, and has a strong brand reputation and stable sales network in the category market dominated by cigarette stoves. In recent years, with integration as the starting point, the company has vigorously developed dishwashers and micro steaming and baking machines in the field of kitchen electricity, and achieved steady growth. We predict that the company’s earnings per share from 2022 to 2024 will be 2.27 yuan, 2.62 yuan and 2.95 yuan respectively, and the P / E ratios of 22e and 23e will be 13.3 times and 11.5 times. It will be covered for the first time, and we will give the suggestion of “overweight-a”.
Risk warning: market competition intensifies; The rise in raw material costs exceeded expectations; The R & D and penetration efficiency of emerging categories is not ideal, and the real estate policy risk.
