\u3000\u30 Shaanxi Zhongtian Rocket Technology Co.Ltd(003009) 11 Zhejiang Entive Smart Kitchen Appliance Co.Ltd(300911) )
Event: Zhejiang Entive Smart Kitchen Appliance Co.Ltd(300911) disclosed the first quarterly report of 2022. The company achieved a revenue of 247 million yuan in Q1 of 2022, with a year-on-year increase of 63.08%; The net profit attributable to the parent company was 45 million yuan, with a year-on-year increase of 51.48%; The non net profit deducted was 38 million yuan, a year-on-year increase of 40.08%. Revenue and performance exceed market expectations.
Comments:
High revenue growth continues to lead the industry. During the reporting period, the company's revenue continued to grow strongly, with a year-on-year growth potential of + 63%, far exceeding the growth rate of Q1 Aowei caliber integrated stove industry by 19.5%. In terms of sub channels, e-commerce channels have continued to grow rapidly since last year. According to ovicloud data, the company's Q1 retail sales increased by 163% year-on-year, and the market share increased by 8.6pct to 16.1%, maintaining the second position in the industry. The share of offline Ka channels was 6.2%, up 4.3pct year-on-year. In addition, the company's offline distribution continued to deepen its efforts to recruit large businesses, and actively improved the layout of home decoration, engineering and sinking channels.
The gross profit margin is under pressure in the short term, and the performance growth exceeds the market expectation. In terms of gross profit margin, the company's Q1 gross profit margin was -0.7pct to 43.65% year-on-year, and the decline was significantly narrowed month on month. It is expected that the cost pressure of raw materials still exists, but the company hedged most of the pressure on the cost side through product price increase and product structure upgrading. From the perspective of gross sales difference, the gross sales difference of 22q1 company was -0.14pct year-on-year and 0.18pct month on month, mainly benefiting from the control of sales expenses. The sales expense ratio of 22q1 company increased from -0.52pct to 19.06% year-on-year. It is expected that the investment efficiency of subsequent marketing expenses is expected to continue to improve. The management expense ratio was + 3.38pct year-on-year, mainly due to the increase of share based payment expenses and employee compensation; The R & D expense ratio and financial expense ratio were -0.44 and -0.77pct year-on-year respectively. Under the comprehensive influence, the net interest rate of Q1 company was -1.4pct year-on-year, and the net profit increased by 51% year-on-year.
The cash flow is disturbed by the rapid development of e-commerce channels, and the cash to cash ratio remains at a high level. The net operating cash flow of 2022q1 company is RMB -73 million. We expect that there are two main reasons: 1) the rapid increase in the proportion of e-commerce revenue of the company, resulting in a large increase in the uncollected payment for e-commerce platform, which is reflected in the asset side. The accounts receivable increased from RMB 8.02 million in 2021q1 to 92.31 million in 2022q1. 2) considering the impact of the epidemic, the company reduced the requirements for early payment of dealers Q1. In terms of cash to cash ratio, Q1 cash to cash ratio still reaches 1.2, and the quality of cash flow is still at a good level.
Investment suggestion: as a high-quality enterprise integrating kitchen stoves and racetracks, the company has leading advantages in product strength. After the second generation takes over, the channel marketing upgrade accelerates the growth, the internal reform dividend continues to be realized, and the growth rate leads the industry. We believe that the company is expected to seize a higher market share in the integrated stove track with accelerated penetration, and the company will enter a period of rapid development in the next three years. It is estimated that the net profit attributable to the parent company from 2022 to 2024 will be 288 / 377 / 486 million respectively, with a growth rate of 38% / 31% / 29%, corresponding to 23, 17 and 13 times of the current share price PE respectively, maintaining the "recommended" rating.
Risk tip: market competition has intensified significantly, and the price fluctuation of raw materials has exceeded expectations.
