\u3000\u3 China Vanke Co.Ltd(000002) 959 Bear Electric Appliance Co.Ltd(002959) )
Performance summary: the company released the first quarterly report of 2022. In 2022q1, the company achieved a revenue of 980 million yuan, a year-on-year increase of 7.7%; The net profit attributable to the parent company was about 100 million yuan, with a year-on-year increase of 15.9%; The net profit attributable to the parent company after non deduction was about 100 million yuan, with a year-on-year increase of 18%.
The industry continues to be under pressure and the company's performance is stable. According to the cumulative omni-channel promotion data of ovicloud from January to March 2022, the retail sales of 13 categories of kitchen small household appliances (electric rice cooker, induction cooker, electric pressure cooker, soybean milk machine, wall breaking machine, mixer, juicer, electric kettle, frying machine, electric steaming stew, health pot, desktop single oven and air fryer) totaled 13.5 billion yuan, a year-on-year decrease of 11.1%; The retail volume was 59.57 million units, a year-on-year decrease of 13.4%. Under the interference of the epidemic, the logistics was limited, and the kitchen small household appliance industry continued to be under pressure. Under the background of weak prosperity in the industry, the company has still achieved steady growth. We believe that on the one hand, the company has operated for many years and its brand competitive strength has been confirmed; On the other hand, the company continued to enrich its product matrix, and its diversification strategy gradually took effect. In the future, as the epidemic situation is gradually controlled and the transportation capacity is alleviated, the operation performance of the company is expected to be better.
Improved profitability. During the reporting period, the company's comprehensive gross profit margin was 37.2%, up 1.6pp year-on-year and 7.3pp month on month. We believe that there are two main reasons for the increase of the company's gross profit margin: (1) diversified product layout and structural optimization promote the upward movement of the average sales price of products, which is conducive to the improvement of the company's gross profit margin; (2) The proportion of self operation promotes the structural improvement of the company's gross profit margin. In terms of expense rate, the company's sales expense rate / management expense rate / R & D expense rate were 15.9%/3%/3% respectively, with a year-on-year change of 1.8pp/0.1pp/-0.3pp respectively. We speculate that the increase in sales expense rate was mainly due to the company's strengthening of brand marketing and the layout of Tiktok and other emerging platforms. Overall, the company's net profit margin was 10.7%, up 0.8pp year-on-year and 3.1pp month on month, and its profitability improved steadily. Against the background of rising raw material prices, the company's profitability has improved against the trend, which fully shows the company's business toughness.
Profit forecast and investment suggestions. In the long run, the small household appliance industry has full potential. As a star enterprise of small household appliances, the company's diversified product layout is gradually effective, and its comprehensive competitive strength is continuously strengthened. It is expected that the EPS will be 2.17 yuan, 2.59 yuan and 3.10 yuan respectively from 2022 to 2024, maintaining the "hold" rating.
Risk warning: the price of raw materials may fluctuate sharply, and the terminal sales are less than expected.
