\u3000\u30 Shaanxi Zhongtian Rocket Technology Co.Ltd(003009) 11 Zhejiang Entive Smart Kitchen Appliance Co.Ltd(300911) )
Key investment points
Performance summary: Q1 company achieved a revenue of 250 million yuan in 2022, with a year-on-year increase of 63.1%; The net profit attributable to the parent company was 40 million yuan, a year-on-year increase of 51.5%; Deduct the non net profit of RMB 40 million, with a year-on-year increase of 40.1%. The non recurring profit and loss is mainly the investment income of RMB 5.77 million.
Product channels have made multi-dimensional efforts, and the company’s performance has maintained high growth. During the reporting period, the integrated stove industry maintained growth. According to the AVC push total data, the retail volume of the integrated stove industry in 2022q1 reached 510000 units, a year-on-year increase of 4.9%; Retail sales reached 1.95 billion yuan, a year-on-year increase of 47.5%. As the leading enterprise in the integrated stove industry, the company has increased R & D investment on the product side, promoted the rapid promotion of new products and continuously optimized the product structure; At the channel end, we will continue to improve the construction of three-dimensional channels, actively enter home decoration, Ka and other channels, and help diversify channels; On the brand side, the brand voice is built through the combination of point, line and surface, such as upgrading the brand image, standardizing services and improving advertising. In the context of maintaining the growth of the industry, the company’s product channels have made multi-dimensional efforts to promote the company to achieve growth much higher than that of the industry.
Profitability is under short-term pressure. During the reporting period, the company’s comprehensive gross profit margin was 43.7%, a year-on-year decrease of 0.7pp. In terms of expense ratio, the company’s sales expense ratio was 18.6%, a year-on-year decrease of 0.5pp; The management fee rate was 8%, up 2.9pp year-on-year, mainly due to the increase in share based payment expenses; The financial expense ratio was – 2.3%, a year-on-year decrease of 0.8pp. Overall, the company’s net interest rate was 18.1%, down 1.4pp year-on-year.
The average price of products rose and the market share increased rapidly. The company vigorously invested in marketing expenses, strengthened brand building, made joint efforts in products and channels, and promoted the simultaneous rise of volume and price of the company’s products. According to AVC data, the online and offline market share of 2022q1 company reached 17.3% / 6.9% respectively, with a significant year-on-year increase of 10.9/4.3pp respectively; Thanks to the increase in the proportion of integrated steaming and baking and independent steaming and baking of the company’s high-end products, the company’s product structure continued to be optimized, and the average price of products online and offline reached 11761 / 11478 yuan, an increase of 2257 / 1635 yuan respectively year-on-year.
Profit forecast and investment suggestions. It is estimated that the EPS from 2022 to 2024 will be 2.49/3.29/4.28 yuan respectively. Considering that the company, as a high-quality enterprise of integrated stove, has strong terminal competitive strength and steadily optimized share, it is expected that the company will operate better and maintain the “buy” rating.
Risk warning: the price of raw materials may fluctuate sharply and the terminal sales may be less than expected.
