\u3000\u3 China Vanke Co.Ltd(000002) 959 Bear Electric Appliance Co.Ltd(002959) )
Event: in 2022q1, the company achieved an operating revenue of 977 million yuan, a year-on-year increase of + 7.69%, and a net profit attributable to the parent company of 104 million yuan, a year-on-year increase of + 15.93%. After deduction, the net profit attributable to the parent company was 98 million yuan, a year-on-year increase of + 17.98%.
Q1 revenue grew month on month, and the recovery trend of small household appliance demand was clear. The operating revenue of Q1 company was + 7.69% year-on-year, and the growth rate (+ 6.83%) month on month was further improved after becoming positive. We believe that the base pressure has been eliminated. The company adopts the common development route of kitchen, life, personal care and other categories, which can support the long-term and stable development of the company. The sales of Q1 JD + tmall kitchen / personal care / household appliances were + 4.05 / + 93.42 / – 1.91% year-on-year respectively. At the same time, the company has adopted diversified channel development to actively enhance the influence of the new social platform, with Q1 Tiktok sales reaching 193million yuan. From the demand side, the epidemic has been repeated in many places since March, and the little bear is expected to benefit from the increased demand for small electricity and household appliances in the long tail kitchen brought by the home policy.
Adjust the product structure and further repair the profitability. Q1 company achieved a gross profit margin of 37.17%, a year-on-year increase of + 1.61pct. In response to the cost pressure of raw materials, the company actively adjusted the product structure and price. The average price of Q1 Jingdong platform bear products was + 3.24% year-on-year, and the average price of kitchen / living / personal care was + 0.56 / + 18.03 / – 3.55% year-on-year respectively. In terms of expense ratio, the company increased sales expense investment, and the sales / management / R & D / financial expense ratio of 22q1 company was + 1.80 / + 0.09 / – 0.32 / + 0.40pct respectively. Q1 company achieved a net interest rate of 10.66%, a year-on-year increase of + 0.76pct.
The net operating cash flow increased significantly, and the turnover capacity of accounts receivable improved. 1) Q1 company’s monetary capital + trading financial assets totaled 1.284 billion yuan, up + 12.84% from the beginning of the period, mainly due to the growth of the company’s operating revenue; Accounts receivable at the end of Q1 totaled 79 million yuan, down from – 37.62% at the beginning of the period, mainly because some accounts receivable were recovered in the current period; The total inventory at the end of Q1 was 542 million yuan, down – 12.11% from the beginning of the period. 2) From the perspective of turnover, the turnover days of inventory / accounts receivable / accounts payable of 22q1 company are -0.37 / – 2.78 / + 4.42 days respectively compared with 21 years, and the turnover capacity of inventory and accounts receivable has been improved. 3) 22q1 net cash flow from operating activities was 217 million yuan, compared with – 306 million yuan in the same period last year, mainly due to the increase in cash received from the sale of goods and the provision of labor services in the current period.
Profit forecast and investment rating: we believe that in the face of the increasing competition in the small household appliance market, the company will actively invest in the cost, seize the emerging social platform, adjust the sales model, continuously launch new categories and SKUs, and realize the upgrading and construction of the brand, which will further consolidate the dominant position of the company in the long run. The company is expected to return to normal if the early-stage repair costs are intensive or the new platform is expected to return to normal in the future.
We estimate that the company’s operating revenue in 22-24 years will be RMB 4.070/47.43/5.470 billion, with a year-on-year increase of + 12.9/16.5/15.3%. The net profit attributable to the parent company in 22-24 years is expected to be RMB 374449/523 million, with a year-on-year increase of + 31.9/20.2/16.5% respectively, corresponding to pe18.5% 37 / 15.29/13.13x, maintaining the “buy” rating.
