\u3000\u3 China Vanke Co.Ltd(000002) 032 Zhejiang Supor Co.Ltd(002032) )
Event: Recently, the company released its 2021 annual report.
In 2021, the company achieved a total operating revenue of 21.585 billion yuan, a year-on-year increase of 16.07%; The net profit attributable to the parent company was 1.944 billion yuan, a year-on-year increase of 5.29%; The net profit attributable to the parent company after deduction was 1.858 billion yuan, a year-on-year increase of 16.48%. At the end of the reporting period, the basic earnings per share was 2.4 yuan / share; The weighted average return on net assets was 26.81%. As a leading enterprise of cooking utensils and small kitchen appliances in China, the company has maintained a leading market share for a long time with strong R & D and manufacturing capacity and a stable dealer network. At the same time, with the active promotion of the company's multi category and multi field layout, its competitive advantage in the industry continues to consolidate.
Key investment points:
Domestic sales grew steadily and export revenue increased significantly. According to the data of the disclosed annual report, the company achieved an operating revenue of 14.26 billion yuan / 7.326 billion yuan outside China in 2021, with a year-on-year increase of 10.80% / 27.91%. The domestic business benefited from the successful implementation of its online channel transformation strategy and the further optimization of product sales structure, which increased by more than 23 percentage points compared with the previous year; The significant increase in export revenue was mainly due to the continuous transfer of orders from the company's controlling shareholder and SEB group, the largest overseas OEM procurement customer. Among them, the company sold 6.862 billion yuan of goods to SEB group in the whole year, with a year-on-year increase of 25.79%. According to the company's 2022 related party transaction announcement, it is expected that the total amount of goods sold by the company to SEB group will reach 7.554 billion yuan this year, and the growth rate will continue to maintain more than 10%. Considering the continuous growth of SEB group's sales scale in the global market and the full recovery of the supply chain affected by the current epidemic, the company's export revenue may continue to benefit from its order transfer and grow steadily.
Actively promote product innovation and category expansion, and the competitive advantage of the industry has been stable for a long time. The company always adheres to the development strategy of product diversification and differentiation. Based on the needs of consumers for home cooking and multi scene use, innovative and smart products are promoted to promote the continuous improvement of user stickiness and brand influence. According to the data of the annual report, in 2021, the market share of the company's main cooking utensils and kitchen small household appliances ranked first and second respectively. In addition, the company's household electrical appliances category has developed steadily, and the cumulative market share of online / offline ironing machine category in the whole year has reached 10.5% / 29.8%, also ranking at the forefront of the industry. At the same time, the company launched the industry's first suction and drag integrated hand wash free vacuum cleaner in 2021, successfully broadening the product line and opening up new growth space with the help of brand and channel advantages. With the deepening of the company's product development strategy, it is expected that in the future, it may fully benefit from the high dividend increase of its involvement in emerging industries and the revenue increment brought by the continuous promotion of innovation.
The channel reform is accelerated, and the profitability is expected to continue to improve. In 2021, the company accelerated the reform of two-way channels. On the online side, the company increased the "one inventory" mode of e-commerce and the construction of direct operated DTC official flagship store. At the same time, in order to cope with the rising pressure of raw materials and freight prices, the company timely optimized the product sales structure, and effectively improved the terminal profitability and released the cost side pressure by increasing the sales proportion of high value-added and high gross profit products. Offline, accelerate the comprehensive cooperation with the traditional e-commerce platform in the o2o channel of the sinking market. When the primary and secondary markets are faced with challenges due to the impact of the epidemic, the company actively develops the emerging growth points of the tertiary and tertiary markets by relying on the advantages of medium and high-end market positioning and stable agents. During the reporting period, the company's gross profit margin was 23%, which was nearly 3% lower than that of the previous year due to the fluctuation of raw material prices and the new income standards. However, if calculated according to the statistical caliber before reclassification, the company's annual gross profit margin was only 0.38% lower than that of the previous year, and the profit remained relatively stable. Considering the renegotiation of the sale price between the company and SEB group and the continuous optimization of the channel structure, the company's profit margin is expected to continue to recover in the future.
For the first time, give the company a "buy" investment rating. It is estimated that the company's diluted EPS from 2022 to 2024 will be 2.8 yuan /3.3 yuan /3.8 yuan respectively. Calculated according to the closing price of 52.32 yuan on April 21, the corresponding PE will be 18.6x/15.8x/13.8x. Under the pressure of various external factors, the company continued to promote channel reform and effectively implemented refined operation. Subsequently, with the successful implementation of various business strategies, the company superimposed the incremental contribution of product innovation to the future revenue scale, and was optimistic about the continuous repair of its future profitability and performance growth. Therefore, through comprehensive analysis, the company is given a "buy" investment rating.
Risk warning: SEB order transfer is not as expected; The cost of raw materials and shipping continued to rise; The RMB exchange rate fluctuates sharply; Industry competition intensifies.
