\u3000\u3 Shengda Resources Co.Ltd(000603) 848 Guangdong Hotata Technology Group Co.Ltd(603848) )
Event overview
Guangdong Hotata Technology Group Co.Ltd(603848) released the annual report of 2021: in 2021, the company realized an operating revenue of 1.425 billion yuan, a year-on-year increase of + 22.88%; The net profit attributable to the parent company was 300 million yuan, a year-on-year increase of + 12.97%. Quarter by quarter, the operating revenue of Q4 in a single quarter was 477 million yuan, a year-on-year increase of + 2.26%; The net profit attributable to the parent company was 82 million yuan, a year-on-year increase of - 28.39%. In Q4, the company's revenue scale reached a new high since listing, and the year-on-year growth slowed down due to the high base in the same period of last year; The profit side was affected by the superposition of high raw material prices and high base, which fell year-on-year. In terms of cash flow, the net cash flow from operating activities in 2021 was 208 million yuan, a year-on-year increase of + 39.52%, of which the net cash flow from Q4 operating activities was 101 million yuan, a year-on-year increase of - 46.44%, mainly due to the impact of the high base in the same period of last year. In addition, the company plans to distribute a cash dividend of 2.50 yuan (including tax) for every 10 shares.
Analysis and judgment:
Revenue side: smart home products are growing rapidly, and the in-depth reform of channels has achieved remarkable results.
Compared with the same period last year, the scale of traditional drying products and intelligent drying products increased by 2.6-3 billion yuan and 2.63-3 billion yuan respectively, and the main products of the company were upgraded from traditional drying products to intelligent drying products, with a year-on-year growth of 2.6-3 billion yuan and 2.3-3 billion yuan, respectively. The company maintains the leading competitive strategy of products, makes use of the long-term precipitated technical strength, continuously carries out iterative upgrading of products, and continues to launch new smart home products to meet the market demand, laying a good foundation for the long-term and steady development of the company. In terms of channels, the sales of the company's distribution and direct channels in 2021 were 640 million yuan and 778 million yuan respectively, with a year-on-year increase of + 14.59% and + 33.14% respectively. The main channels showed steady growth, and the in-depth reform of channels achieved remarkable results. In addition, the company has successfully expanded its e-commerce, engineering and other channels. In terms of e-commerce channels, the company adopts the strategy of multi-channel deployment throughout the network and fine online operation driven by big data. In 2021, the sales volume of e-commerce channels was 678 million yuan, a year-on-year increase of + 38.90%, maintaining a rapid growth trend; In terms of Engineering channels, we continued to optimize the customer and price structure, won the first real estate enterprise in a row, and the business development was smooth.
Profit side: Q4's profitability declined, and the expense rate was well controlled during the period.
In terms of profitability, the gross profit margin and net profit margin of the company in 2021 were 45.09% and 21.15% respectively, with a year-on-year increase of -3.32pct and -1.91pct respectively. Among them, the gross profit margin and net profit margin of the company in Q4 were 44.87% and 17.14% respectively, with a year-on-year decrease of -2.84pct and -7.62pct respectively. The profitability decreased, mainly due to the increase of procurement costs of main raw materials, electronic components, hardware accessories, aluminum profiles and plastic products, The cost side is under pressure. The company reasonably controls the purchase price of raw materials through supplier sourcing optimization, centralized price negotiation and procurement, so as to alleviate the pressure on the cost side to a certain extent. In terms of business, in 2021, the company's gross profit margin of smart home products, clothes hanger products and other products were 46.04%, 42.34% and 39.08% respectively, with a year-on-year increase of -4.10pct, -5.63pct and + 3.64pct respectively. Affected by the rise of raw material prices, the gross profit margin of main products decreased. In terms of period expense rate, the period expense rate of the company in 2021 was 21.70%, with a year-on-year rate of -2.37pct, of which the sales expense rate, management expense rate, R & D expense rate and financial expense rate were 14.26%, 4.59%, 3.41% and -0.56% respectively, with a year-on-year rate of -1.39pct, -0.08pct, -0.50pct and -0.41pct. In Q4, the company's expense rate during the single quarter was 19.90%, with a year-on-year decrease of -2.86pct, of which the sales expense rate, management expense rate, R & D expense rate and financial expense rate were 13.30%, 4.28%, 3.81% and - 1.49% respectively, with a year-on-year increase of + 0.26pct, -0.01pct, -0.95pct and - 2.17pct. The expense rate during the period was well controlled, and the financial expense rate decreased significantly, mainly due to the increase of interest income of the company's bank deposit financial products.
Investment advice
Clothes hanger products continue to upgrade, retail channel changes enhance the company's control ability at the terminal, e-commerce channels continue to develop, bulk engineering channels are actively expanded, and the performance is expected to continue to grow steadily. Considering the impact of repeated epidemic and high raw material prices, the previous profit forecast was lowered, and the operating revenue of the company in 22-23 years was reduced from 1.908/2.428 billion yuan to 1.703/2.013 billion yuan respectively; From 22 to 23 years, EPS was lowered from 1.10/1.42 yuan to 0.86/1.03 yuan respectively. It is estimated that the company's revenue and EPS in 2024 will be 2.353 billion yuan and 1.22 yuan respectively, corresponding to the closing price of 13.35 yuan / share on April 20, 2022, and PE will be 16 / 13 / 11 times respectively, maintaining the rating of "overweight".
Risk tips
Industry demand is less than expected risk; Market competition intensifies risks; Risk of substantial increase in raw material prices; The short-term epidemic has repeatedly affected.
