\u3000\u3 Shengda Resources Co.Ltd(000603) 848 Guangdong Hotata Technology Group Co.Ltd(603848) )
Event: on April 20, Guangdong Hotata Technology Group Co.Ltd(603848) issued the 2021 annual report. In 2021, the company achieved 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%; The net profit attributable to the parent company after deduction was 279 million yuan, a year-on-year increase of 22.40%. In 2021q4, the company realized an operating revenue of 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 decrease of 28.39%; The net profit attributable to the parent company after deducting non-profit was 95 million yuan, a year-on-year decrease of 4.97%.
Intelligent upgrading of product structure and optimization iteration of technology enabled products. Relying on its core products, intelligent clothes dryer and intelligent door lock, the company expanded its layout around the field of smart home, and steadily promoted the four business segments of fabric intelligent care, intelligent care, intelligent healthy life and intelligent light sense. By category, the revenue of smart home products in 21 years was 1.082 billion yuan, a year-on-year increase of 53.70%, and the revenue of clothes hanger products was 311 million yuan, a year-on-year decrease of 23.93%. In terms of production capacity, in 21 years, the production of smart home products reached 1048300 sets, with a year-on-year rapid growth of 91.96%. The company uses the long-term accumulated technical reserves to promote the continuous iterative upgrading of products: 1) in terms of intelligent drying products, new products such as ultra-thin series, Juneng drying series and fashion series have won wide favor in the market, accelerating the improvement of the company’s market share; 2) In terms of intelligent lock, the company has developed a new generation of products based on cat’s eye video, st-q2 lock body noise reduction, biometric and other technologies, integrating perception technology and intelligent control, so as to empower products with science and technology.
Offline channels continued to change and improve efficiency. Online channels were accurately distributed on multiple platforms. In terms of channels, distribution channels achieved revenue of 640 million yuan in 21 years, with a year-on-year increase of 14.59%, and direct channels achieved revenue of 778 million yuan, with a year-on-year increase of 33.14%. In terms of offline channels, the company effectively enabled terminals, accelerated the implementation of provincial operation platform mode, and built an efficiency management oriented management system. In terms of online channels, e-commerce channels achieved revenue of 678 million yuan in 21 years, with a year-on-year increase of 38.90%. Tiktok Kwai shopping mall has adopted a multi platform strategy to expand its online operation through big data, expand millet mall, Suning POP, fight more flagship stores, have a good shopping mall, shake hands fast shop, and deep Jingdong self catering, Tmall home decoration and Jingdong FCS channel, in the “618” and “double 11” promotion activities, Tmall and Jingdong air drying category double champion. In terms of Engineering channels, the company continues to optimize the customer structure and cooperates with property management and home decoration companies, which is expected to break through new incremental space. In the 21st year, the company’s clothes dryer products won the exclusive bid for Hangzhou 2022 Asian Games Village project, fully demonstrating the brand strength.
The profitability is under pressure in the short term, and the large volume of intelligent products is expected to break through the profit space. In 21 years, the company’s comprehensive gross profit margin was 45.09%, down 3.32pct year-on-year, mainly due to the sharp rise in the prices of non-ferrous metals, plastic raw materials and other raw materials. In terms of products, the gross profit margin of smart home products in 21 years is 46.04%, and that of traditional clothes hanger products is 42.34%. With the steady increase of the proportion of smart home products, the profitability of the company is expected to be repaired. During the 21 years, the company’s expense rate was 21.70%, with a year-on-year decrease of 2.37 PCT, and the expense rates of sales / management / R & D / finance were 14.26% / 4.60% / 3.41% / – 0.56% respectively, with a year-on-year increase of -1.39 / – 0.08 / – 0.50 / – 0.41 PCT respectively. The effect of expense control was obvious.
Investment suggestion: Guangdong Hotata Technology Group Co.Ltd(603848) continue to build the core competitiveness of smart home with leading technology and further enrich the whole house intelligent product set. With the continuous construction of provincial operation platform, accelerated expansion of online channels and optimization of engineering channel structure, the company is expected to achieve steady growth. We estimate that the operating revenue of Guangdong Hotata Technology Group Co.Ltd(603848) 20222024 will be RMB 1.695 billion, RMB 2.004 billion and RMB 2.326 billion, with a year-on-year increase of 18.92%, 18.22% and 16.09%; The net profit attributable to the parent company was RMB 371 million, RMB 465 million and RMB 505 million, with a year-on-year increase of 23.54%, 25.36% and 8.63%, corresponding to PE of 13.1x, 10.4x and 9.6x, maintaining the investment rating of buy-a
Risk tip: the risk of intensified industry competition, the risk of sharp fluctuations in raw material prices, and the risk of channel reform costs exceeding expectations.
