\u3000\u3 China Vanke Co.Ltd(000002) 959 Bear Electric Appliance Co.Ltd(002959) )
Event:
On April 28, 2022, Bear Electric Appliance Co.Ltd(002959) released the first quarterly report of 2022. In 2022q1, the company realized an operating revenue of 977 million yuan (+ 7.69%); The net profit attributable to the parent company was 104 million yuan (+ 15.93%).
In 2022q1, the production cost was well controlled, and the growth rate of personal care small household appliances was bright. In 2022q1, the growth rate of the company’s net profit attributable to the parent company was greater than the revenue, mainly due to the good control of the company’s production end and expense end. The e-commerce sales volume of personal care small household appliances increased rapidly. According to radish data, the sales volume of personal care product e-commerce platform of 2022q1 company increased by + 93.42% year-on-year, realizing rapid growth.
In 2022q1, both gross profit margin and net profit margin increased. 1) The gross profit margin of 2022q1 company is 37.17% (+ 1.61pct), which is mainly due to the rising average price of some products; According to the data of ovicloud, the average online prices of cooking machines, Juicers and mixers of 2022q1 company were + 6.78%, + 12.21% and + 5.61% respectively year-on-year. 2) In 2022q1, the net profit margin of the company was 10.66% (+ 0.76pct), which was less than the gross profit margin. The main reason was the increase in the rate of sales expenses. The rates of sales, management and R & D expenses of the company were 15.91% / 2.99% / 3.01% respectively, with a year-on-year increase of + 1.79 / + 0.09 / – 0.32pct respectively.
Adhere to the product diversification strategy and continue to promote brand building. 1) Product side: the company continues to enrich the product matrix and deeply cultivate the market segments. Up to now, it has more than 60 product categories and more than 500 product models, diversified product layout and effectively improved the company’s risk ability. 2) Brand side: the company continued to promote brand upgrading, carried out brand joint marketing activities on many emerging social platforms, such as Tiktok, Kwai and xiaohongshu, and arranged a brand live room to reach a wider customer base with the help of emerging communication channels.
Multi category layout, market segmentation, consolidation of e-commerce channels, continuous marketing, first coverage, and “buy” rating. By expanding the product matrix, the company lays out multiple market segments, continues to cultivate e-commerce channels, and actively develops emerging marketing channels. Products, channels and marketing end jointly help the development of the company. For the first time, give a “buy” rating. We predict that the net profit attributable to the parent company from 2022 to 2024 will be RMB 343 / 411 / 478 million, corresponding to EPS of RMB 2.19/2.63/3.06, and the current share price corresponding to PE of 20.02/16.71/14.37 times.
Risk tips: repeated covid-19 epidemic, price fluctuation of raw materials, exchange rate fluctuation, intensified market competition, tight shipping capacity, etc.
