\u3000\u3 China Vanke Co.Ltd(000002) 032 Zhejiang Supor Co.Ltd(002032) )
Event: the company released a quarterly report. The company’s operating revenue in the single quarter of 2022q1 was 5.612 billion yuan, a year-on-year increase of + 9.25%; The net profit attributable to the parent company was 538 million yuan, a year-on-year increase of + 6.61%, and the deduction of non net profit was 527 million yuan, a year-on-year increase of + 12.54%.
Reform dividends continued to be released, with double-digit growth in domestic sales. According to the announcement of related party transactions of the company, we predict that the export growth rate of Q1 of the company is about 1.5% – 2%, and the corresponding domestic growth rate is about 11.91%, of which the growth rate of cooking utensils is higher than that of electrical appliances. According to the data of the business consultant, the growth rate of Gmv in the small power industry of the 22q1 Amoy platform was – 17.07%, of which Zhejiang Supor Co.Ltd(002032) Gmv bucked the trend and increased by 12%. We believe that with the promotion of the company’s channel reform, the share of the company’s strong categories has further increased, and the emerging categories have continued to contribute to the increment.
The gross profit margin of domestic sales increased, and the income tax rate affected the net profit. The gross profit margin of 2022q1 company increased from -1.13pct to 25.36% year-on-year, but considering the adjustment of transportation expenses included in operating costs in the new accounting standards, we judged that the gross profit margin of the company as a whole and domestic sales improved year-on-year under the same caliber. Expense ratio: the sales / management / R & D / financial expense ratio of 2022q1 company increased from -2.00pct/0pct / – 0.04pct / – 0.01pct to 9.52% / 1.66% / 1.60% / – 0.09% year-on-year, with excellent cost control ability. Net interest rate: in 2022q1, the net interest rate of the company increased from -0.19pct to 9.62% year-on-year. We believe that it is mainly due to the increase of income tax rate by 4pct year-on-year. If it is equal to the income tax rate of 21q1, the growth rate of net profit will be 13%. Considering that the company’s annual income tax rate is stable, it is expected that the net profit in subsequent quarters will show greater toughness.
The decline in operating cash flow was caused by material lock and material preparation. In 2022q1, the net cash flow from operating activities of the company increased from – 36.75% to 365 million yuan year-on-year, which was caused by the increase of purchasing goods and paying other cash related to operating activities in the cash outflow from operating activities. We judged that it was related to the preparation of raw materials.
With the promotion of channel reform, the transformation of demand insight and the transformation of marketing efficiency, the growth of the company’s revenue side is worry free. From the perspective of effect, 1) the company’s strong categories have pricing power again, and the share of emerging categories has increased significantly; 2) Accelerate the pace of promoting new products, strengthen the ability of consumers to solve pain points, and continue to promote the high-end of advantageous categories; 3) Layout of new media, clearer marketing expense policy, and higher communication efficiency between brand and dealers.
Profit forecast and investment suggestions. In essence, the company’s export is the pricing power brought by the production efficiency in the SEB system. The traditional categories at the domestic revenue end are in the strong stage of the competition pattern, and the emerging categories continue to contribute to the increment. At the same time, the channel efficiency is expected to further improve the profit margin. The company’s short-term performance is highly deterministic, there is no need to worry too much about the medium-term competition pattern, and the ability to expand products at low prices of long-term big brands remains. We predict that the net profit attributable to the parent company from 2022 to 2024 will be RMB 2.39527663187 billion, an increase of 23.2% / 15.5% / 15.2% at the same time, maintaining the “buy” investment rating.
Risk tip: the cost of raw materials continues to rise, the competition pattern worsens, and the promotion of innovation is less than expected
