\u3000\u3 Bohai Water Industry Co.Ltd(000605) 268 Wangli Security & Surveillance Product Co.Ltd(605268) )
Event: on April 22, Wangli Security & Surveillance Product Co.Ltd(605268) released the 2021 annual report. In 2021, the company achieved an operating revenue of 2.645 billion yuan, a year-on-year increase of 25.12%; The net profit attributable to the parent company was 138 million yuan, a year-on-year decrease of 42.64%; The net profit attributable to the parent company after deduction was 126 million yuan, a year-on-year decrease of 44.10%. In 2021q4, the company realized an operating revenue of 838 million yuan, a year-on-year increase of 15.53%; The net profit attributable to the parent company was -11 million yuan, a year-on-year decrease of 111.63%; The net profit attributable to the parent company after deducting non-profit was -16 million yuan, a year-on-year decrease of 118.56%.
The distribution and engineering continued to make efforts, the product structure was upgraded, and the revenue growth in 21 years was in line with expectations
In terms of products, the company's revenue from steel safety doors, other doors (armored doors, wooden doors, copper doors, etc.) and intelligent locks in 2021 was RMB 1851 million, 537 million and 162 million respectively, with a year-on-year increase of 17.16%, 45.14% and 56.44% respectively. 1) Safety gate: the company gives full play to the outstanding advantages of bulk business, seizes the market opportunity, selects high-quality real estate enterprise partners, undertakes bulk business under the background of strict risk control, and the overall business scale is industry-leading. After 21q3, the real estate policy has been relaxed, the renovation of superimposed stock houses and the transformation of old communities continue, and the 22-year growth rate is expected to be repaired. 2) In terms of smart locks: the company relies on its strong R & D strength to continuously upgrade its functions and carry out product iteration, including products such as senseless visual anti-theft smart locks, so as to realize the upgrading of "hard and soft anti-theft", with obvious technical advantages. The online sales volume of the smart lock industry has increased by 35.5% in the past 21 years, with a bright growth rate. The company's smart lock business is expected to continue to grow at a high rate in the future and optimize the product structure. In the 21st year, the gross profit margin of steel safety door is 23.11%, that of other doors is 26.75%, and that of intelligent lock is 37.65%.
The distribution channel is optimized, and the cooperation with major engineering customers is stable. In terms of channels, in 21 years, the revenue from distribution channels was 1.331 billion yuan, a year-on-year increase of 14.87%, the revenue from engineering channels was 1.181 billion yuan, a year-on-year increase of 35.74%, and the revenue from e-commerce channels was 38 million yuan, a year-on-year increase of 54.38%. In terms of distribution channels, the company has optimized the distribution channels by developing new dealers in blank areas, training and upgrading old dealers and replacing backward dealers. In 2021, 449 new dealers and 271 replacement dealers were added. In terms of project channels, the company made use of its leading advantages to strengthen project development, established strategic cooperative relations with China's well-known real estate enterprises such as country garden and Jinke, and developed regional engineering customers such as Yuexiu real estate and Jianye real estate to realize strong alliance. In terms of e-commerce channels, the company focuses on planting grass and creating explosive funds, realizes the normalization of live broadcasting of tmall and jd.com, and completes the trial operation of rookie and jd.com third-party warehousing. After stabilization, it is expected to reduce the express delivery cost by 40%, and the implementation of e-commerce OMS order system can significantly improve the efficiency. In addition, in 21 years, the company established Shanghai Wangli home furnishing Co., Ltd. to actively expand the decoration channel and develop property cooperation space.
The rising cost of raw materials has put pressure on the gross profit margin in the short term, and the cost control is relatively stable. In 2021, the company's comprehensive gross profit margin decreased by 7.39pct to 24.45% year-on-year, mainly due to the continuous growth of the average purchase price of raw materials and steel. Superimposed on the impact of 21q2 raised investment project starting to convert to fixed assets, provision for depreciation and increase in management expenses, the net interest rate in 2021 decreased by 1.09pct to 26.97% year-on-year. On the expense side, in 2021, the company's expense rate was 16.51%, with a year-on-year increase of 0.07pct, and the sales / management / R & D / financial expense rate was 10.97% / 4.14% / 2.21% / - 0.81% respectively, with a year-on-year increase of + 0.14 / + 0.44 / - 0.38 / - 0.13pct respectively, mainly due to the increase in advertising investment and the year-on-year increase of 195.69% in business publicity expenses.
Investment suggestion: the smart lock is still in the early stage of development, and the penetration rate is expected to continue to increase. The company's technology, channel, brand and other advantages continue to lead. With the continuous optimization of product structure, the performance is expected to be gradually repaired. We estimate that the operating revenue of Wangli Security & Surveillance Product Co.Ltd(605268) 20222024 will be 3.305, 4.048 and 4.952 billion yuan, with a year-on-year increase of 24.94%, 22.50% and 22.34%; The net profit attributable to the parent company was 236 million yuan, 345 million yuan and 468 million yuan, with a year-on-year increase of 71.56%, 46.29% and 35.67%, corresponding to PE of 18.8, 12.8 and 9.5. The investment rating of Buy-A was given.
Risk tip: the risk of sharp rise in the price of raw materials, the risk of fluctuation in the real estate industry, the risk that the development of intelligent lock is less than expected, and the risk of market competition.
