\u3000\u30 Shaanxi Zhongtian Rocket Technology Co.Ltd(003009) 11 Zhejiang Entive Smart Kitchen Appliance Co.Ltd(300911) )
Core view
Q1 revenue and profit continued the strong growth trend. The company released its first quarterly report. In 2022q1, it achieved a revenue of 247 million / + 63.08%, a net profit attributable to the parent of 45 million / + 51.48%, and a net profit not attributable to the parent of 38 million / + 40.08%. Non recurring gains and losses mainly come from investment income and government subsidies. Under the high prosperity of the industry, the company continued to release its internal business vitality through all-round reform, boosting the company’s all-channel expansion and strong growth of revenue and profit; The profit growth rate is slightly lower than the income growth rate, which is mainly affected by the payment expenses of equity incentive. The amortization expenses of the company’s equity incentive plan in 2021 are expected to be 16.71 million in 2022, which may have an impact on the company’s Q1 profit.
The high prosperity of integrated stoves continues, and the volume and price of the industry rise at the same time. According to the data of ovicloud, the retail sales of integrated stoves in 2022q1 increased by 19.5% year-on-year to 4.75 billion, Wuxi Online Offline Communication Information Technology Co.Ltd(300959) respectively increased by 24.3% / 18.4%; The retail volume increased by 4.5% to 510000 units, and the average retail price of the industry increased by 14.4%.
The average price of the market will be greatly upgraded. According to the data of ovicloud, the market share of Yitian integrated kitchen line in 2022q1 increased by 8.6pct to 16.1%, and the offline market share increased by 4.3pct to 6.2%. Thanks to the increase in the proportion of high-end models such as integrated steaming and baking and independent steaming and baking, the Wuxi Online Offline Communication Information Technology Co.Ltd(300959) average price of the company increased by 14.4% / 18.3% respectively, and the average price continued to rise.
Profitability is basically stable. The gross profit margin of 2022q1 company decreased slightly by 0.7pct to 43.7%, or affected by the transportation cost. In terms of gross profit margin sales expense ratio, the gross sales difference of Q1 decreased by only 0.1pct. In terms of expenses, due to the increase of compensation caused by the payment of equity incentive and the increase of personnel, the company’s management expense rate increased by 3.4pct to 4.4% year-on-year, and the R & D / sales / financial expense rate increased by – 0.4 / – 0.5 / – 0.8 to 3.6% / 18.6% / – 2.3% respectively. The company’s Q1 net profit margin fell 1.4pct to 18.1% year-on-year.
The negative operating net cash flow is mainly affected by the increase in operating payments. In 2022q1, the net operating cash flow of the company was -73 million yuan, a year-on-year decrease of 120 million yuan. Specifically, the company’s cash inflow from operating activities still increased, with a year-on-year increase of 7% to 310 million, which was less than the revenue growth, mainly due to the increase of accounts receivable and notes. In terms of operating cash outflow, the company’s tax, advertising investment, employee wages and bonuses increased.
Risk warning: industry competition intensifies; The price of raw materials has risen sharply; Channel development was less than expected.
Investment advice: maintain the profit forecast and maintain the “buy” rating.
Considering the strong revenue growth and the continuous increase in the proportion of high-end products under the omni-channel expansion of the company, and maintaining the profit forecast, it is estimated that the net profit attributable to the parent company will be 290 / 3.8 / 490 million from 2022 to 2024, with a growth rate of 36.9% / 32.9% / 27.3%; Diluted EPS = 2.65/3.53/4.49 yuan, corresponding to PE = 23 / 17 / 13X, maintaining the “buy” rating.
