\u3000\u3 China Vanke Co.Ltd(000002) 959 Bear Electric Appliance Co.Ltd(002959) )
2022q1 performance returned to positive growth, optimistic about structural optimization driving profit repair, and maintained the “buy” rating
In 2022q1, the company achieved a revenue of 977 million yuan (+ 7.69%), and a net profit attributable to the parent company of 104 million yuan (+ 15.93%). Under the pressure of raw material cost, the profit returned to positive growth. Considering the effectiveness of the company’s multi category development strategy, the optimization of product structure and the increase of self operated proportion are expected to continue to drive the repair of profits. We maintain the company’s profit forecast from 2022 to 2024 unchanged. It is estimated that the net profit attributable to the parent company from 2022 to 2024 will be RMB 331 / 402 / 478 million, corresponding to EPS of RMB 2.11 / 2.57 / 3.06, and the current share price corresponding to PE of 22.8 / 18.8 / 15.8 times, maintaining the “buy” rating.
In 2022q1, the kitchen small household appliance business bucked the trend and was optimistic about the long-term growth of new products under the adjustment of organizational structure
In terms of small kitchen appliances, according to ovicloud, the total sales of all channels in 2022q1 were – 11.1% year-on-year. Under the background of weak overall industry prosperity, the sales of small kitchen appliances increased by 3.38% year-on-year, including + 11.71% year-on-year from January to February and – 10.78% year-on-year in March 2022, or due to the impact of the epidemic. In terms of new expansion fields, it is expected that the company’s maternal and infant personal care / massage equipment will continue to perform well. By channel, with the company actively expanding Tiktok and other emerging channels, it is estimated that the Gmv of Tiktok channel will exceed RMB 20million in 2022q1. Looking forward to 2022, the organizational structure will be adjusted or stimulate business vitality, and continue to be optimistic about the performance increment brought by personal care, mothers and infants and the development of emerging channels.
The optimization of channel and product structure supports the improvement of gross profit, superimposes the strengthening of internal management and drives the repair of profit
The gross profit margin of 2022q1 company was 37.17% (+ 1.61pct), 7.29pct higher than that of 2021q4. Under the background of high raw material costs, the gross profit margin of the company bucked the trend. We believe that it is mainly due to the optimization of channels and product structure. On the expense side, the ratio of sales / management / R & D / financial expenses of 2022q1 company was + 1.80pct / + 0.09pct / – 0.32pct / + 0.40pct respectively year-on-year. The increase of sales expenses was mainly due to the strengthening of brand and self operated channel construction of the company. In addition, benefiting from the streamlining of SKU strategy, the improvement of product management and after-sales processing capacity, the improvement of the company’s R & D input-output efficiency led to the decrease of expense rate, and the loss of inventory falling price was greatly reduced. Under the comprehensive influence, the company’s net interest rate was 10.66% (+ 0.76pct), with a chain comparison of + 3.06pct, and the marginal improvement of performance was obvious. Looking forward to 2022, we will continue to be optimistic about the improvement of profitability under the company’s brand upgrading, product structure optimization and raw material price improvement.
Risk tip: the recovery of industry demand is less than expected; Rising prices of raw materials; The development of new categories is less than expected.
