\u3000\u3 China Vanke Co.Ltd(000002) 959 Bear Electric Appliance Co.Ltd(002959) )
Event: in Q1 2022, the company realized an operating revenue of 977 million yuan, a year-on-year increase of + 7.69%, and a net profit attributable to the parent company of 104 million yuan, a year-on-year increase of + 15.93%. Performance exceeded expectations. Western style / pot / pot driven revenue growth
In terms of business, the company's western style / pot / pot sales are good, and the growth rate of electric and electric heating is slightly weak. According to the business consultant data, the sales volume of electric rice cooker / electric steamer / air fryer in 22q1 pot increased by 9% / 101% / 135% year-on-year, the sales volume of health pot / electric kettle in pot increased by 0.3% / 30% year-on-year, and the sales volume of multi-functional cooking machine in Western style increased by 8% year-on-year, especially the sales volume of electric steamer and air fryer in pot.
The proportion of self operation increased and the profit increased significantly
In 2022, the company's Q1 gross profit margin was 37.17%, year-on-year + 1.61pct, and the net profit margin was 10.66%, year-on-year + 0.75pct. The company's gross profit level has improved, mainly due to the upgrading of the company's product structure and the introduction of some new products with higher prices. At the same time, we think it is also due to the increase in the proportion of self operated by the company. In terms of cost, the pressure of raw material prices tends to be gradually digested month on month.
Increase the proportion of self operated and increase the investment of sales expenses
The company's Q1 sales, management, R & D and financial expense rates in 2022 were 15.91%, 2.99%, 3.01% and 0.03% respectively, with a year-on-year increase of + 1.8, + 0.09, - 0.32 and + 0.4pct. Due to the increase of self operated proportion, the company also increased the investment of sales expenses accordingly. However, the increase in gross profit margin brought about by the upgrading of product and channel structure made the gross sales difference 22q1 -0.19pct year-on-year and + 6.32pct month on month, which was significantly improved month on month. The company's operation was stable and its cash flow improved year-on-year
In terms of balance sheet, the company's 2022q1 monetary capital + trading financial assets was 1.991 billion yuan, a year-on-year - 3.33%, inventory was 542 million yuan, a year-on-year + 9.11%, notes and accounts receivable totaled 79 million yuan, a year-on-year - 60.02%, and the company's accounts receivable decreased significantly, mainly due to the recovery of some accounts receivable in the first quarter. In terms of turnover, the turnover days of inventory, accounts receivable and accounts payable at the end of Q1 in 2022 were 84.88, 9.48 and 47.5 days respectively, with a year-on-year increase of + 5.73, - 3.41 and + 12.81 days.
In terms of cash flow, the net cash flow from the company's operating activities in Q1 2022 was 217 million yuan (21 Q1 was - 31 million yuan), of which the cash inflow from the sale of goods and the provision of labor services was 1.109 billion yuan, a year-on-year increase of + 19.49%.
Investment suggestion: on the revenue side, the company actively promotes the steady growth of rigid demand categories. At the same time, the growth rate of the company's emerging categories is good, and there is still a lot of room for development in the future. On the profit side, the company adjusts the channel structure and launches new products at high prices to stabilize the overall gross profit margin. If the pressure on the cost side is relieved, it is expected to significantly improve the overall profit level. The company gradually eliminates the impact of high base, and the growth rate is expected to return to normal in the future.
According to the company's first quarterly report, we slightly reduced the revenue growth rate and slightly increased the gross profit margin. It is estimated that the net profit in 22-24 years will be 360 million yuan, 430 million yuan and 500 million yuan respectively (the previous value is 350 million yuan, 430 million yuan and 500 million yuan), corresponding to the dynamic valuation of 19x, 16x and 14x respectively, maintaining the "buy" rating.
Risk warning: the sales of new products are less than expected; Fluctuation risk of raw materials; Macroeconomic fluctuation risk, etc
