\u3000\u3 China Vanke Co.Ltd(000002) 032 Zhejiang Supor Co.Ltd(002032) )
Performance summary: the company released the first quarterly report of 2022, and achieved a revenue of 5.61 billion yuan in 2022q1, a year-on-year increase of 9.3%; The net profit attributable to the parent company was 540 million yuan, an increase of 6.6% year-on-year.
New products + channel reform, domestic sales increased rapidly. From the perspective of domestic sales, due to the repeated impact of the Chinese epidemic, the prosperity of the small household appliance industry has declined, superimposed with the logistics obstruction in some regions, and the prosperity of China’s kitchen small electricity industry has declined. According to the total data pushed by ovicloud, the retail sales of kitchen small electricity in Q1 decreased by 11.1% and 13.4% year-on-year in 2022. However, the company’s channel reform has achieved remarkable results, and Q1 domestic sales still achieved rapid growth. On the one hand, the company actively arranged the emerging categories of floor washing machines, integrated stoves and air fryers to promote the steady growth of domestic sales; On the other hand, the company continued to promote the layout of emerging platforms such as Tiktok, and online channels grew rapidly. AVC data show that Q1 company’s online sales share of rice cooker / electric pressure cooker / health pot increased by 2.9% / 0.2% / 2.9% year-on-year. With the steady recovery of offline channels in the future and the continuous development of online channels, the company’s domestic sales are expected to achieve rapid growth.
Export sales grew steadily. After two years of rapid growth, the demand for overseas small household appliances has dropped. The growth rate of export orders of the company slowed down, but it still maintained a relatively steady growth. According to the related party transaction data previously released by the company, the export sales of Q1 company are expected to increase by about 2% year-on-year.
Income tax affects the company’s short-term profits. The company’s comprehensive gross profit margin was 25.4%, a year-on-year decrease of 1.1pp. We speculate that the decline of the company’s gross profit margin is mainly due to the adjustment of accounting standards. If the adjustment of accounting standards is excluded, it is speculated that the company’s Q1 gross profit margin has increased under the promotion of the re agreed price for export and the reform of domestic sales channels. In terms of expense rate, the company’s sales expense rate / management expense rate / financial expense rate were 9.5% / 3.3% respectively, with a year-on-year change of – 2PP / + 0.1pp. The expense rate of the company was well controlled during the period, but affected by the increase of income tax, the net interest rate of the company decreased by 0.2pp to 9.6% year-on-year.
Profit forecast and investment suggestions. As one of the leaders of small household appliances, the channel reform of the company has been effective, and the domestic sales have increased steadily; The export price has been renegotiated and the profit has improved steadily. We expect the company’s EPS to be 2.91/3.25/3.60 yuan from 2022 to 2024 respectively, maintaining the “hold” rating.
Risk tip: the risk of raw material price or sharp fluctuation, and the risk of repeated epidemic.
