\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 690 Haier Smart Home Co.Ltd(600690) )
Key investment points
Performance summary: Q1 company achieved a revenue of 60.25 billion yuan in 2022], a year-on-year increase of 10%; The net profit attributable to the parent company was 3.52 billion yuan, a year-on-year increase of 15.1%; Deduct non net profit of RMB 3.19 billion, with a year-on-year increase of 13%.
China’s share is leading and its revenue continues to grow. In terms of China’s business, despite the challenges of repeated epidemics and weak demand during the reporting period, the company improved its business efficiency through digital transformation and business model innovation, Wuxi Online Offline Communication Information Technology Co.Ltd(300959) integration improved its terminal retail capacity, and built 120 stores in sanyiniao 001, driving the revenue of China zhihuijiating and other businesses to increase by 16% year-on-year. The company continues to expand its market competitive advantage through product iteration and category innovation. According to zhongyikang data, the offline market share of the company’s refrigerator / washing machine / clothes dryer and water heater reaches 42.8% / 45.4% / 35.3% / 29.3% respectively; The proportion of online listing reached 38.6% / 40.3% / 27.6% / 32.7% respectively, and the market share continued to lead. In addition, Casati, the company’s high-end brand, continued to increase, and Q1 revenue increased by 32.3% year-on-year.
Overseas adhere to the high-end strategy and expand the advantages of core products. In terms of overseas business, during the reporting period, the company expanded its product advantages through highly differentiated and systematic product structure upgrading. Relying on the collaborative development of Wuxi Online Offline Communication Information Technology Co.Ltd(300959) and giving full play to the advantages of global collaborative platform, the company promoted the share increase, promoted the overseas business to achieve a year-on-year increase of 4.2% in revenue and 0.1pp in operating profit margin. By market, in the US market, the company continued to improve the leadership of high-end products, enriched the high-end product matrix and brand layout through product innovation and upgrading, and promoted the growth of high-end brands including monogram, CAF é and geprofile by more than 30%; In the European market, the company adheres to the high-end strategy and promotes the implementation of localized operation. According to GfK data, as of February 2022, the company has become the company with the fastest growth in local sales and sales.
Demonstrate confidence in equity incentive plans. The company issued the 2022 equity incentive plan, which plans to grant 110 million stock options to 1840 people including business executives and core technicians at the price of 23.86 yuan / share, accounting for 1.1% of the share capital. The performance assessment is based on 2021, and the compound growth rate of performance from 2022 to 2025 is required to be no less than 15%. In addition, the company plans to implement the A / H-share core employee stock ownership plan with RMB 680 million / 60 million respectively. The performance assessment is based on the benchmark of 2021, and the compound growth rate of performance from 2022 to 2023 is required to reach 15%. The introduction of equity incentive plan and employee stock ownership plan fully demonstrates the company’s confidence in development.
Profitability increased steadily. During the reporting period, the gross profit margin of the company increased by 0.1pp to 28.5% year-on-year. The company hedges the cost pressure through product innovation, multi brand operation and overseas localization operation. In terms of expense rate, the company continued to reform and improve efficiency, helping the sales expense rate to decrease by 0.4pp to 13.9%; The rate of administrative expenses decreased by 0.1pp to 7.7%; The financial expense ratio was 0.2%, a year-on-year decrease of 0.1pp. Overall, the company’s net interest rate was 5.9%, up 0.3pp year-on-year.
Profit forecast and investment suggestions. As a leading household electrical appliance enterprise, the company has continued to promote its diversified, high-end and global layout and steadily improved its profits. It is expected that the EPS of 20222024 will be 1.64/1.88/2.13 yuan respectively, maintaining the “buy” rating.
Risk tip: the price of raw materials may fluctuate sharply, the expansion of new products is less than expected, and the overseas expansion is less than expected.
