\u3000\u3 China Vanke Co.Ltd(000002) 959 Bear Electric Appliance Co.Ltd(002959) )
Event: the company released the first quarterly report of 22 years, and the performance exceeded expectations. 22q1 company achieved a revenue of 977 million yuan, an increase of 7.69% at the same time; The net profit attributable to the parent company was 104 million yuan, an increase of 15.93% at the same time, and the performance exceeded expectations.
The small electricity boom in the kitchen is divided, and the company’s revenue performance is relatively bright. 22q1 the small electric power industry in the kitchen was in a different period of prosperity. According to ovicloud, the sales of cooking machines, health pots and frying machines from January to March were – 19.92% / – 24.19% / – 11.07% year-on-year, and the sales of air fryers and electric steamers were + 162.77% / 49.84% year-on-year. According to the company’s annual report, in 21 years, pot and cooker products replaced electric products as the product category with the highest proportion of revenue (the proportion increased by 2.7pct to 21.28% year-on-year), and its revenue growth rate was also the highest among small kitchen appliances (YoY + 12.56%). We expect that the company still attaches importance to pot products, and the growth of air fryer, electric steamer and other categories will effectively drive the company’s revenue.
Q1 single quarter profitability increased significantly, the proportion of self operated increased, pushing up the sales rate. Gross profit margin: the company’s 22q1 gross profit margin was 37.17%, the highest level of gross profit margin in a single quarter since 20 years ago, with an increase of 1.61pct and a significant increase of 7.3pct month on month. We judge that the increase is mainly due to the adjustment of product structure & the increase of self operated proportion, the structural optimization of the company’s gross profit margin level, and a better hedge against the current raw material cost pressure. Rate side: overall stable, in which the sales rate is affected by the increase of self operated proportion, with a year-on-year increase of + 1.80pct to 15.91%. Net interest rate: the net interest rate in 22q1 was 10.66%, with a year-on-year / month on month increase of 0.8/3.1pct respectively.
Q1 operating cash flow was good in a single quarter. The net cash flow received by the company in the same quarter of last year was RMB 2.25 billion (a year-on-year increase of RMB 1.95 billion), mainly due to the net cash flow received by the company in the same quarter of last year. The contract liabilities at the end of the period amounted to 37 million yuan (77 million yuan in the same period last year), with a year-on-year decrease. It is expected that the decrease is mainly due to the decrease in the proportion of the company’s distribution. The accounts receivable in Q1 decreased by 37.6% to 79 million in a single quarter. In combination, we judge that this change does not reflect the weakening of the dealers’ willingness to pick up goods.
Creative small household appliance leaders, category development and build a growth curve. The online of small household appliances has reduced the supply threshold of the industry, increased the number of new players and raised the cost of online drainage. However, we believe that Bear Electric Appliance Co.Ltd(002959) as a platform company for creative small household appliances, it is less subject to the pressure of single product competition; Long tail products that continuously tap the needs of consumer segments can form a certain brand mind; The company has many years of experience in e-commerce operation and is highly sensitive to channel changes. In the future, the company is expected to further develop categories such as mother and child care and personal care, and build a growth curve.
Profit forecast and investment suggestions. We expect the net profit attributable to the parent company from 2022 to 2024 to be RMB 339 / 418 / 508 million respectively, with a year-on-year increase of 19.7% / 23.2% / 21.6%. The company has large long-term growth space and maintains its previous “buy” rating.
Risk tips: the expansion of new products is less than expected, the profit is damaged due to the price war, and the duration of the epidemic is longer than expected
