\u3000\u30 China Baoan Group Co.Ltd(000009) 21 Hisense Home Appliances Group Co.Ltd(000921) )
Hisense Home Appliances Group Co.Ltd(000921) : central air conditioning + household white voltage cabin, merger and acquisition of Sandian holdings, and actively cut into the new energy industry chain
Hisense Home Appliances Group Co.Ltd(000921) mainly engaged in global sales of home / commercial central air conditioning, household white electricity, commercial cold chain, kitchen and bathroom, etc. It has “Hitachi”, “Hisense”, “York” central air brands, as well as “Hisense”, “Rongsheng”, “Kelon”, “gorenje” and other household brands. In 2021, Hisense’s brands accounted for 15% of the total sales of central air conditioners in China. In 2021, the revenue was + 40% to 67.6 billion yuan, and the net profit attributable to the parent company was – 38% to 970 million yuan;
And purchase the leading automotive air conditioner Sandian holdings, and actively enter the new energy industry chain. Japan’s Sandian holdings is mainly engaged in automotive thermal management systems and components and commercial freezers. It entered the field of automotive air conditioning compressors in the 1970s and has major customers such as Volkswagen and general motors. Affected by the slow transformation of new energy and the epidemic, the revenue and profit fell sharply in 2020. Under the pressure of debt, it was acquired by Hisense in June 2021 (75% equity).
Growth outlook: household appliances are stable, new energy turns losses and is determined to forge ahead
The central air conditioning industry is in a period of high growth, and Hisense, as a leader, still has room for growth; The market share of ice washing for export has increased steadily, and the overall business of white power is stable and good;
Sandian enters new energy + Hisense takes the lead, hoping to improve efficiency in coordination. The total scale of global new energy vehicle thermal management is expected to achieve a compound growth rate of 35%, and the global scale is expected to exceed 110 billion yuan by 2025. The company has a solid product, brand and customer reputation. After Hisense takes the lead, its strategic direction will further focus on the new energy field. At the same time, the synergy of technology and supply chain will also contribute to the bottom reversal of the company.
Investment advice: maintain the “buy” rating
Maintaining the profit forecast, the net profit attributable to the parent company from 2022 to 2024 was RMB 1.63 billion, 1.91 billion and 2.17 billion, with a year-on-year growth rate of 67%, 18% and 14%; The current share price corresponds to PE = 10, 9 and 8 times. Considering the valuation of comparable companies, give 12-13 times PE, corresponding to the target market value of about 19.9-21.1 billion yuan in 2022, and maintain the “buy” rating;
Risk tip: the expansion of new energy business of Sandian is less than expected; The improvement of the profitability of the third power company is less than expected; The share of white electricity business declined; The efficiency of M & A integration is lower than expected.
