\u3000\u3 China Vanke Co.Ltd(000002) 372 Zhejiang Weixing New Building Materials Co.Ltd(002372) )
Event: the company released the first quarterly report of 2022. The company's Q1 revenue in 2022 was 1.006 billion yuan, a year-on-year increase of 12.21%; The net profit attributable to the parent company was 117 million yuan, a year-on-year increase of 3.87%, and the performance was in line with expectations.
Income grew steadily against the trend. Despite the weak demand of the industry and the impact of repeated epidemic on the business development in some regions, the company's business still showed strong resilience, and its revenue increased by 12.21% against the trend. The retail end grew steadily. Due to the low base in the early stage, the growth rate of real estate projects was slightly higher than that of the whole, and the municipal projects increased slightly.
22during Q1, the expenses continue to be diluted, and the gross profit margin and investment income affect the current profit. On the profit side, on the one hand, the price of raw materials was at a high level compared with the same period last year. The gross profit margin of 22q1 sales was 36.56%, down 2.29 percentage points year-on-year. In addition to the price fluctuation of raw materials, the adjustment of income standards and the inclusion of packaging fees into operating costs also had an impact on the gross profit margin (the packaging rate in 21 years was about 1%). During the period, the expense rate continued to be diluted, and the sales expense rate of 22q1 was 11.31%, with a year-on-year change of -1.42pct; The management expense ratio was 6.20%, with a year-on-year change of -2.41pct; The R & D expense ratio was 3.11%, with a year-on-year change of -0.09pct. In addition, the investment income of 22q1 was - 1988 million yuan, a decrease of 107.42% over the same period of the previous year, which was mainly due to the changes in the fair value of Ningbo Dongpeng Heli equity investment partnership (limited partnership) in the current period.
Due to the increase of raw material procurement expenditure, cash flow decreased year-on-year. 22q1 net cash flow from operating activities was - 70.55 million yuan, up from 149 million yuan in the same period last year. It is mainly due to the increase of raw material procurement and tax payment in this period. 22The inventory balance at the end of Q1 was 1.132 billion yuan, a year-on-year increase of 38.89%.
The product + service model creates strong bargaining power, and the concentric circle strategy waterproof and water purification business develops rapidly. Relying on high-quality products and "star housekeeper" service mode, the company has established brand advantages and efficiency advantages through flat sales channel management. Under the background of rising raw material prices and weak demand, the company can still maintain a stable gross profit margin, which reflects the company's strong cost transfer ability. The company promotes the concentric circle strategy and contributes to the rapid development of new businesses such as waterproof and water purification.
Profit forecast and investment rating: the company continued to promote the implementation of the "two wheel drive" strategy, and strengthened channel sinking, blank market expansion and concentric circle product extension at the retail end; Steadily expand engineering business, expand incremental markets in real estate, municipal and other fields, and ensure business quality. Under the promotion of the company's concentric circle strategy, the contribution of new products is increasing, and the matching rate is increasing. We maintain that the net profit attributable to the parent company from 2022 to 2024 is expected to be RMB 1437 / 1686 / 1956 million respectively, and the corresponding PE is 21x / 18x / 15x respectively, maintaining the "buy" rating.
Risk tip: macroeconomic downside risk; The risk of sharp fluctuations in the price of raw materials; The risk of intensified market competition; The risk of new business development falling short of expectations.
