Biyi shares (603215)
Event:
On April 19, 2022, Biyi issued its annual report for 2021. In 2021, the company achieved revenue of 1.634 billion yuan (+ 40.43%); The net profit attributable to the parent company was 120 million yuan (+ 13.15%). 2021q4 single quarter revenue 428 million yuan (+ 8.16%); The net profit attributable to the parent company is 33 million yuan (- 6.02%).
Key investment points:
In 2021, the growth of air fryer was beautiful, and the export revenue increased steadily. 1) Sub business: the annual revenue of air fryer was 1.040 billion yuan (+ 62.07%), accounting for 63.74% of the main business revenue. The main reason was that the epidemic had driven the demand for healthy small household appliances and the increase of Philips and Zhejiang Supor Co.Ltd(002032) orders. The high growth of the industry brings dividends. According to the data of Aowei cloud network, the cumulative retail sales of categories from January to February 2022 are 1.2 billion yuan (+ 148.7%), and the company's revenue is expected to further grow in the future. The annual revenue of air oven was 249 million yuan (+ 34.84%), accounting for 15.24%; 2) By Region: the annual revenue of export sales was 1.547 billion yuan (+ 48.52%), accounting for 94.81%, mainly due to the increase of orders from major customers such as Philips. Domestic sales revenue declined, with an annual revenue of 85 million yuan (- 29.69%), accounting for 5.19%, mainly due to the reduction of orders such as Liren.
2021q4 profitability is under short-term pressure and the cost side is well controlled. 1) Gross profit margin: the gross profit margin of 2021q4 is 16.01% (- 5.17pct), which is mainly due to the rise in the price of raw materials and the decline in the exchange rate dominated by export; 2) Net interest rate: 2021q4 net interest rate is 7.71% (- 1.16pct), the decline is less than the gross profit rate, and the performance of the expense side is good. 2021q4 sales / management / R & D expense rates were 1.23% / 1.77% / 3.79% respectively, with a year-on-year ratio of -0.75 / + 0.21 / - 0.51pct respectively.
Consolidate the advantages of ODM / OEM and start the construction of OBM. 1) ODM / OEM: with high-quality customer resources, it has become an important supplier for Philips, Newell, sharkninja, Zhejiang Supor Co.Ltd(002032) , Bear Electric Appliance Co.Ltd(002959) and other leading enterprises. In 2021, the cooperation with Philips was deepened, with a sales amount of 404 million yuan. In 2022, two air fryers developed for Philips will be listed to explore the Chinese market; 2) OBM: Tmall self dominated, 2022 layout of many tiktok, new channel such as voice and electricity. OEM has accumulated advantages in R & D, design and product quality control, enabling independent brand construction. In the future, the large volume of OBM business may drive the company to extend to both ends of the smile curve and improve the gross profit margin.
Take the east wind of the air fryer industry, consolidate the export advantages of high-quality customers, build the second growth curve of independent brands, cover for the first time, and give a "buy" rating. The epidemic situation has promoted consumers' attention to health. It is easy to achieve high growth under the low base of emerging tracks, which is expected to benefit more than the main categories of air fryers and air ovens. Explore the construction of independent brands, carry out diversified channel layout, expect to become the second growth curve of the company, cover it for the first time, and give a "buy" rating. We predict that the net profit attributable to the parent company from 2022 to 2024 will be 139 / 179 / 234 million yuan, corresponding to EPS of 0.74/0.96/1.25 yuan, and the current share price corresponding to PE of 23.11/17.97/13.73 times.
Risk tips: repeated covid-19 epidemic, price fluctuation of main raw materials, exchange rate fluctuation, intensified market competition, and the development of new channels fails to meet expectations.
