Core view
Research tracking and investment thinking this week: in 2021, the volume and price of integrated stove industry increased, and the leading enterprises in the industry achieved beautiful growth. This week, we compared the business performance of four listed companies of integrated stove in 2021:
Comparison of scale and dealers: Midea and Marssenger Kitchenware Co.Ltd(300894) scale are leading, and Yitian grows the fastest. In terms of volume, Marssenger Kitchenware Co.Ltd(300894) revenue ranks first in the industry, Meida’s profit volume is relatively leading, and Yitian’s revenue and profit growth is the fastest. From the perspective of dealers, Zhejiang Meida Industrial Co.Ltd(002677) has the largest number of dealers and stores. In 2021, Zhejiang Meida Industrial Co.Ltd(002677) has 1900 dealers, and the number of dealers of Marssenger Kitchenware Co.Ltd(300894) , Zhejiang Entive Smart Kitchen Appliance Co.Ltd(300911) and Zhejiang Sanfer Electric Co.Ltd(605336) is 1450, 1300 and 1300 respectively. In terms of the operation capacity of dealers, the sales scale of MEDA and Marssenger Kitchenware Co.Ltd(300894) single dealers is the largest, and the pick-up volume of Yitian dealers is growing the fastest.
Cost input: Marssenger Kitchenware Co.Ltd(300894) sales cost input is the largest, and Yitian grows the fastest. 1) In terms of sales expense rate, the Marssenger Kitchenware Co.Ltd(300894) sales expense rate in 2021 is the highest, reaching 21.8%, of which publicity fee and marketing promotion fee account for 47% Zhejiang Entive Smart Kitchen Appliance Co.Ltd(300911) ‘s sales expense rate increased the fastest, from 2.7pct to 19.3%. 2) In terms of management expense ratio, the management expense ratio of Zhejiang Sanfer Electric Co.Ltd(605336) is the highest, reaching 4.7% / + 0.4pct, which is mainly due to the increase of employee compensation and depreciation and amortization of office buildings caused by equity incentive, and the management expense ratio of other companies has declined. 3) In terms of R & D expenses, Zhejiang Entive Smart Kitchen Appliance Co.Ltd(300911) R & D expense rate is the highest, reaching 4.5%; Shuaifeng’s R & D expense rate increased the fastest, with a year-on-year increase of 0.4pct to 4.2%. 4) In terms of financial expense rate, the financial expense rate of Zhejiang Sanfer Electric Co.Ltd(605336) is – 2.6% / – 0.5pct, and the financial expense rate of the other three companies remains between – 0.6% ~ – 1.0%.
Comparison of profitability: Zhejiang Meida Industrial Co.Ltd(002677) has the best profit performance and Marssenger Kitchenware Co.Ltd(300894) has fast asset turnover. In 2021, the roes of the four leading enterprises of integrated stove Marssenger Kitchenware Co.Ltd(300894) , Zhejiang Entive Smart Kitchen Appliance Co.Ltd(300911) , Zhejiang Sanfer Electric Co.Ltd(605336) and Zhejiang Meida Industrial Co.Ltd(002677) were 26.6%, 18.9%, 13.7% and 36.4% respectively, and the return on net assets of Zhejiang Meida Industrial Co.Ltd(002677) was the highest. After dismantling the return on net assets of each company, it can be found that Zhejiang Meida Industrial Co.Ltd(002677) wins with high net interest rate and keeps leading in asset turnover rate Marssenger Kitchenware Co.Ltd(300894) has the highest asset turnover and equity multiplier.
Key data tracking: market performance: the relative income of home appliances last week was + 1.91%. Raw materials: the prices of copper and aluminum in LME3 months increased from – 0.7% and – 0.2% to US $10234 / 3259 / ton on a weekly basis respectively; Cold rolling prices fell 0.3% week on week to 5631 yuan / ton. Container transportation index: the weekly ratio of West America / East America / Europe was – 0.73%, – 0.12%, + 0.31% respectively; Capital flow: Midea / Gree / Haier luchutong’s shareholding ratio changed by – 0.04%, + 0.23%, – 0.04% on a weekly basis.
Suggestions on core investment portfolio: white power recommends Midea Group Co.Ltd(000333) , Haier Smart Home Co.Ltd(600690) , efficiency improvement and continuous promotion of channel reform; Kitchen electricity recommends high growth and strong incentive integrated stove leader Marssenger Kitchenware Co.Ltd(300894) , and second-line leader of all-round improvement Zhejiang Entive Smart Kitchen Appliance Co.Ltd(300911) ; Smart projection faucet Chengdu Xgimi Technology Co.Ltd(688696) , 2b and 2C go hand in hand Appotronics Corporation Limited(688007) .
Risk warning: the epidemic situation leads to fluctuations in production and marketing; Intensified market competition; Demand growth is less than expected; The price of raw materials has risen sharply.
