\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 690 Haier Smart Home Co.Ltd(600690) )
Event: Recently, the company released the first quarterly report of 2022 and the employee stock ownership plan and stock option incentive plan of 2022.
Comments:
In the first quarter of 2022, the company maintained steady development. In the first quarter of 2022, the company achieved a revenue of 60.251 billion yuan, an increase of 10.0% over the same period in 2021; The net profit attributable to the parent company was 3.517 billion yuan, an increase of 15.1% over the same period in 2021. In Q1 2022, the company’s gross profit margin was 28.5%, an increase of 0.05 percentage points year-on-year. Facing the challenges of repeated outbreaks in China, slowing global economic growth, relatively weak market demand and high prices of bulk raw materials, focusing on the strategic goal of creating a smart home ecological brand in the era of the Internet of things, the company continues to expand the advantages of high-end brands through product iteration and category innovation, so as to achieve common development outside China, continuously optimize the layout of the supply chain, reduce costs and increase efficiency, and achieve sustained and steady business development, The profitability increased against the trend.
China’s business revenue maintained double-digit growth, and Casati maintained rapid growth. (1) In the Chinese market, the company explores the weak cyberspace from the two dimensions of improving operation efficiency and upgrading user experience; In the first quarter of 2022, China’s smart home and other businesses achieved good development, with revenue increasing by 16.0% year-on-year. Among them, Casati’s high-end brand continued to maintain a rapid development trend, and its revenue increased by 32.3% year-on-year. (2) By category, in the Q1 Chinese market in 2022, the company’s online and offline retail sales of refrigerators accounted for 38.6% and 42.8% respectively, and the online and offline retail sales of washing machines accounted for 40.3% and 45.4% respectively, maintaining the leading share advantage in the industry; The share of online and offline retail sales of clothes dryer business was 27.6% and 35.3% respectively, with a year-on-year increase of 2.5 and 2.3 percentage points respectively, and the offline retail sales ranked first in the industry (zhongyikang data). In terms of air conditioning, relying on the continuous enrichment of medium and high-end products such as Casati and Haier washing air conditioning, the company’s high-end market share of household air conditioning (hanging up above 4000 yuan / cabinet machine above 10000 yuan) reached 24.3%, an increase of 4.8 percentage points year-on-year (zhongyikang data).
Overseas business maintained growth, and high-end brands grew brightly. (1) In the first quarter of 2022, the company’s overseas business revenue increased by 4.2% year-on-year, and the operating profit margin increased by 0.1 percentage points year-on-year. Facing the challenges of increasing upstream costs and logistics shortage in overseas markets, the company continues to expand the advantages of core household appliances through high differentiation and systematic product structure upgrading, actively layout new business categories, improve Wuxi Online Offline Communication Information Technology Co.Ltd(300959) channel layout and promote share increase. At the same time, the company gives full play to the advantages of the global collaborative platform and takes multiple measures to optimize business efficiency and ensure product supply. (2) In terms of high-end brands, in the U.S. market, the company’s high-end brands including monogram, CAF é and GE Profile increased by more than 30%. In the European market, the company adheres to the high-end transformation strategy and promotes the implementation of localized business operation capacity; According to GfK statistics, as of February 2022, the company has become the company with the fastest growth in sales volume and sales volume in the local market.
The company issued the employee stock ownership plan and stock option incentive plan in 2022. With the Internet of things leading the company’s upgrading from “high-end brand” to “Scene brand” to “ecological brand”, the company needs long-term layout planning to ensure the realization of strategic achievements, and also needs to improve the matching long-term incentive plan. The company’s incentive plan is conducive to guiding core scientific and technological talents and business teams to continue entrepreneurship and innovation, give full play to and mobilize the enthusiasm of incentive objects, and help the company achieve cross cycle business development. From the assessment conditions, the assessment requirements of the employee stock ownership plan and stock option incentive plan are: Based on 2021, the compound growth rate of net profit attributable to the parent company from 2022 to 2025 will reach or exceed 15%, and the assessment requirements are consistent with the company’s strategy of steady progress.
Investment suggestion: the company is one of the three leading white power companies in China, with perfect overseas channels, good sales growth at home and abroad, and large imagination space in terms of profits. It is estimated that the company’s EPS in 2022 / 2023 will be 1.62 yuan / 1.88 yuan respectively, and the corresponding PE will be 15 / 13 times respectively, maintaining the “recommended” rating
Risk tip: the risk that the slowdown of macroeconomic growth will lead to the decline of market demand; The risk of price war caused by the intensification of industry competition; Price fluctuation risk of raw materials; Overseas business operation risk; Exchange rate fluctuation risk; Risk of policy change; Epidemic risk, etc.
