\u3000\u30 Shaanxi Zhongtian Rocket Technology Co.Ltd(003009) 11 Zhejiang Entive Smart Kitchen Appliance Co.Ltd(300911) )
Event: on April 27, 2022, Zhejiang Entive Smart Kitchen Appliance Co.Ltd(300911) released the first quarterly report of 2022. In 2022, Q1 company realized an operating revenue of 247 million yuan, a year-on-year increase of + 63.08%; The net profit attributable to the parent company was 45 million yuan, a year-on-year increase of + 51.48%.
Q1’s performance exceeded market expectations and its market position continued to improve. Among the first echelon integrated stove companies that have disclosed Q1 performance, Yitian has excellent performance, leading the competition in terms of revenue and performance growth, and continues to seize market share. According to the industry online data, the output and sales volume of the integrated stove industry from January to March were + 8.3% and + 13.5% year-on-year respectively, of which the output and sales volume of 100 million fields were + 69.8% and + 60.2% respectively, significantly leading the industry as a whole. From January to March, the share of domestic sales volume has increased to 11.3%, with a year-on-year increase of + 3.3pct. In addition, the company continues to promote the construction of high-end products. According to Aowei data, from January to March, the market share of Yitian’s offline channel was 1.5 ~ 1.6W, with a year-on-year increase of 41.75pct. The average price of the overall offline channel increased by 1953 yuan year-on-year, and the volume and price rose together, creating a high growth.
Gross profit margin declined slightly in the short term. Q1 gross profit margin was 43.65%, year-on-year -0.66pct; The net interest rate was 18.07%, year-on-year -1.38pct. The gross profit margin declined slightly, which we believe is mainly due to the continuous rise in the price of raw materials in Q1. In the future, with the proportion of high-end products gradually increasing, we expect the gross profit margin will also improve. From the perspective of expense rate, Q1 management expense rate has increased significantly, mainly due to the increase of share based payment expenses and employee compensation; The rate of sales and R & D expenses basically kept pace with the growth of revenue. Q1 sales, management and R & D expense rates were 18.58, 4.40 and 3.64%, with a year-on-year rate of -0.52, + 3.38 and -0.44pct.
The monetary capital reserve is sufficient, and the inventory and revenue scale increase simultaneously. 1) Q1 company’s monetary capital was 1.002 billion yuan, a year-on-year increase of + 168.59%, with sufficient cash reserves and enhanced asset liquidity; Contract liabilities + other current liabilities totaled 98 million yuan, a year-on-year increase of – 23.24%; The inventory was 106 million yuan, a year-on-year increase of + 58.38%, matching the growth rate of revenue scale. 2) From the perspective of turnover, the inventory turnover days of Q1 company are -0.46 days year-on-year, and the turnover days of accounts receivable are + 19.65 days year-on-year. The significant increase of accounts receivable is mainly due to the fact that the payment for goods from e-commerce platform has not been received yet. 3) The net operating cash flow of Q1 company was -73 million yuan, a year-on-year increase of – 261.45%. The significant increase in cash outflow was mainly due to the increase in taxes paid by the company and advertising investment.
Profit forecast: Yitian has stepped into the fast lane of growth since 21 years, seized the development opportunity of integrated stove, and realized the high growth rate through the continuous construction of product power, brand power and channel power and the long-term accumulation of technology. We estimate that the company’s operating revenue in 22-24 years will be RMB 1.850/25.47/3.334 billion respectively, with a year-on-year increase of + 50.4% / + 37.7% / + 30.9% respectively; The net profit attributable to the parent company was RMB 304 / 408 / 522 million, with a year-on-year increase of + 45.0% / + 34.3% / + 27.8% respectively, and the corresponding PE was 21.35/15.89/12.44 times.
Risk factors: the price of raw materials continues to rise, the competition in the integrated stove industry intensifies, the policy changes in the downstream real estate industry, the company’s new product launch is less than expected, the company’s channel development is less than expected, and the epidemic situation in China is repeated.
