\u3000\u3 China Vanke Co.Ltd(000002) 180 Ninestar Corporation(002180) )
Event: the company issued the annual report of 2021 and the first quarterly report of 2022. In 2021, the operating income was 22.792 billion yuan, with a year-on-year increase of 7.94% (after adjustment), the net profit attributable to the parent was 1.163 billion yuan, with a year-on-year increase of 701.23% (after adjustment), and the net profit not attributable to the parent was 658 million yuan, with a year-on-year increase of 116414% (after adjustment). In 2022, Q1 achieved an operating revenue of 5.834 billion yuan, a year-on-year increase of 6.74%, a net profit attributable to the parent of 441 million yuan, a year-on-year increase of 77.68%, deducting 395 million yuan of non attributable net profit, a year-on-year increase of 100.03%. The performance is in line with the previous forecast.
The performance in 2021 is actually more optimistic, and the table “Ben Tu” opens the acceleration point of long-term growth. 1) In 2021, the company realized an operating revenue of 22.792 billion yuan, a year-on-year increase of 7.94%, and the net profit attributable to the parent company was 1.163 billion yuan (including the net profit of 39.31% from January to September and 100% from October to December of 2021), a year-on-year increase of 701.22%. Therefore, the actual operation situation is more optimistic. Among them, bentu’s operating revenue in 2021 was 3.87 billion yuan, a year-on-year increase of 71.87%, and its net profit was 679 million yuan, a year-on-year increase of 140.21%. After 2021q4 consolidation, it significantly thickened the performance, which is expected to become the driving point of the company’s long-term profit. 2) In terms of business: in 2021, the company’s original printer and consumables business revenue was 16.745 billion yuan, with a year-on-year increase of 8.63%, accounting for 73.47% of revenue, and the gross profit margin was 33.61%, with a year-on-year increase of 3.07 PCT, which was due to the gradual recovery of the market, the increase in the shipment of bentu and Lexmark original printers, and the rapid growth of original consumables with the increase of printer ownership; The revenue of general consumables and accessories was 4.624 billion yuan, a year-on-year decrease of 2.65%, and the gross profit margin was 29.16%, a year-on-year decrease of 4.58 PCT, which was caused by the rise of global bulk materials and shipping costs and fierce competition in overseas markets and e-commerce; The chip business revenue was 711 million yuan, with a year-on-year increase of 31.76%, and the gross profit margin was 65.01%, with a year-on-year increase of 3.20pct. It is a general consumables chip, which launched strategic new products, comprehensively leading competitors, driving the improvement of value and sales. Moreover, MCU business has reached cooperation with well-known manufacturers in industrial control, automobile and other medium and high-end application fields with stable and reliable quality, realizing rapid growth.
Lexmark has experienced the test of the global epidemic and its business situation has gradually recovered. 1) In 2021, the printing market in Europe and the United States gradually recovered from the bottom of the epidemic in 2020. The annual operating revenue of Lexmark was US $2.177 billion, an increase of about 8.75% over the same period of last year. Under the data caliber of the management’s statement, the annual EBITDA of Lexmark reached US $273.5 million, with a year-on-year increase of 18%. After deducting the amortization of intangible assets, depreciation of fixed assets and other expenses, Lexmark realized a net profit of US $13 million (a loss of US $80 million in 2020). 2) In the context of the normalization of the global epidemic, European and American countries have gradually relaxed the control of the epidemic, and the market demand for office printing has recovered significantly, effectively driving the sales of laser printers and consumables around the world. At the same time, in the global environment of shortage of semiconductor components, although it failed to fully meet the order demand of the market, Lexmark’s annual printer sales still increased by 14%. In addition, we also vigorously develop strategic cooperation with other manufacturers, and the new OEM orders will be shipped successively in 2021.
Sustained high-intensity R & D investment and good overall cost control. 1) In 2021, the company’s R & D expenses reached 1.452 billion yuan, with a year-on-year increase of 5.35%, accounting for 6.37% of revenue. The number of R & D personnel also reached 4261, with a year-on-year increase of 39.66%, accounting for 20% of the total number, with a year-on-year increase of 3.05pct. R & D was mainly invested in color printing, vehicle regulations, industrial general MCU, safety protection SOC, etc., further improving the company’s technical barriers in the industry. 2) In addition to R & D expenses, other expenses were well controlled. In 2021, the sales expense rate was 9.37%, a year-on-year decrease of 0.95pct, the management expense rate was 7.90%, a year-on-year decrease of 1.74pct, the financial expense rate was 2.69%, and a year-on-year significant decrease of 5.45pct, which was due to the decrease of exchange loss caused by the decrease of exchange rate fluctuation and the decrease of interest expenditure caused by loan repayment.
2022q1 performance continues to grow rapidly, verifying long-term growth. In 2022q1, the company achieved an operating revenue of 5.834 billion yuan, with a year-on-year increase of 6.74%, and the net profit attributable to the parent company was 441 million yuan, with a year-on-year increase of 77.68%. The company continued to ship Bento and Lexmark printers and original consumables, and the chip sales increased steadily, which verified the long-term growth of the company.
Benchmarking the global leading enterprises, the sales model of “printer + original consumables” has huge room for profitability upgrading. 1) According to the statistics of CCID Consulting, in 2020, the global printer market reached US $42.1 billion, the company’s laser printer market accounted for about 6.7%, the Chinese printer market reached 32.1 billion yuan, and the company’s laser printer market accounted for about 8.2%. The printer of the company implements the dual brand strategy of “bentu + Lexmark”, forms a comprehensive product line, and gives play to the strong synergy of technology, supply chain and sales network. With the improvement of the competitiveness of the company’s technology brand, there is a huge space for long-term improvement. 2) According to the prospectus of meijiayin, the global consumables market reached nearly 140 billion US dollars in 2021. As a high-frequency consumable, printing consumables can bring continuous performance support to printer manufacturers. In fiscal year 2021, the revenue of consumables business accounted for 62.76% of HP printer business. With the increase of the company’s share, the original consumables business will realize the upgrading of long-term profit model. 3) In addition, the company ranks first in the global general consumables market share, and the patent layout is deepening, consolidating its competitive barriers.
Maintain the “buy” rating. According to key assumptions and recent financial reports, it is estimated that the company’s total operating revenue from 2022 to 2024 will be RMB 275.013277138.741 billion, and the net profit attributable to the parent company will be RMB 19.90/29.94/4.103 billion. Maintain the “buy” rating.
Risk tip: the printing business demand is less than expected; Exchange rate fluctuation risk; Goodwill impairment risk
