\u3000\u3 Shengda Resources Co.Ltd(000603) 848 Guangdong Hotata Technology Group Co.Ltd(603848) )
The annual performance is basically in line with market expectations. 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%; 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 increase of – 28.39%; The net profit attributable to the parent company after deduction was 95 million yuan, a year-on-year increase of – 4.97%.
Smart home products continued to upgrade, and the channel reform achieved remarkable results. In terms of products, 1) the revenue of smart home products was 1.082 billion yuan, a year-on-year increase of + 53.70%. Smart lock products integrated sensing technology and intelligent control to develop new products, and smart airing new ultra-thin series were deeply welcomed by the market; 2) The income of clothes hanger products was 311 million yuan, a year-on-year increase of – 23.93%; 3) The income from other products was 26 million yuan, a year-on-year increase of – 16.54%. By channel, the e-commerce channel revenue in 2021 was 678 million yuan, a year-on-year increase of + 38.90%. The company actively expands online e-commerce channel sales. In 2021, the company will expand new channels such as Xiaomi mall / Suning / pinduoduo, and maintain the leading position of JD self support / tmall home decoration / JD FCS channel; The company promoted the transformation of offline channels and accelerated the implementation of provincial operation platforms. By the end of 2021, there were nearly 300 provincial operation platforms and continued to improve the terminal market share. In addition, the company’s bulk business develops the clothes dryer Market, and the bid winning situation is good, which is expected to further contribute to the performance increment.
Short term profitability is under pressure and expenses are well controlled. In terms of profitability, the company’s gross profit margin in 2021 was – 3.32pp to 45.09% year-on-year, and the net profit attributable to the parent was – 1.85pp to 21.06% year-on-year, mainly due to the pressure on the company’s short-term profit and the company’s significant impairment due to the sharp rise in the price of bulk materials in 2021. In terms of period expense rate, the sales expense rate / management expense rate / R & D expense rate / financial expense rate increased from -1.38pp / – 0.58pp / – 0.50pp / – 0.40pp to 14.26% / 8.00% / 3.41% / – 0.56% respectively year-on-year. The period expense control ability is good.
The cash flow recovered significantly and the operating efficiency remained stable. In 2021, the company achieved net operating cash flow of 208 million yuan, a year-on-year increase of + 39.52%; The ratio of net operating cash flow / net income from operating activities was 67.97%, up + 8.81pp year-on-year, and the cash recovery was good. In terms of operating efficiency, the operating efficiency of the company was relatively stable, with the number of inventory turnover days rising by 2.36 days to 66.24 days year-on-year, and the number of accounts receivable turnover days rising by 3.05 days to 25.56 days year-on-year.
Profit forecast and investment rating: the company’s channel reform continues to deepen, smart home products are upgraded iteratively, and engineering channels continue to increase in volume. The company’s performance is expected to grow steadily. We expect the net profit attributable to the parent company to be 370 / 430 million yuan from 2022 to 2023 (the original forecast was 390 / 440 million yuan), and the net profit attributable to the parent company to be 500 million yuan in 2024, corresponding to 14 / 12 / 11x PE from 2022 to 2024, maintaining the “overweight” rating.
Risk tip: the price of raw materials changes, product promotion is less than expected, competition intensifies, and the effect of channel reform is less than expected.
