\u3000\u3 China Vanke Co.Ltd(000002) 032 Zhejiang Supor Co.Ltd(002032) )
Event:
On April 28, 2022, Zhejiang Supor Co.Ltd(002032) released the first quarterly report of 2022. In 2022q1, the company realized an operating revenue of 5.612 billion yuan (+ 9.25%), and a net profit attributable to the parent company of 538 million yuan (+ 6.61%).
Key investment points:
Online channels drive revenue growth, and the growth rate of performance is slightly slower due to the impact of income tax. 1) Revenue side: in 2022q1, the operating revenue reached 5.612 billion yuan (+ 9.25%), which we believe is mainly driven by the growth of the company’s online revenue; According to radish data, the sales volume of tmall and jd.com platforms of 2022q1 company increased by + 14.44% and 88.73% year-on-year respectively, and the growth rate of jd.com platform was bright. 2) Profit side: in 2022q1, the net profit attributable to the parent company was 538 million yuan (+ 6.61%), and the growth rate was lower than the revenue. The main reason was that the company’s high-tech income tax relief needed to be re certified, and the income tax expenses temporarily increased.
Profitability is under short-term pressure, and the expense rate is well controlled as a whole. 1) Gross profit margin: the gross profit margin of 2022q1 is 25.36% (- 1.13pct). We believe that the main reasons are: a) the rise in the price of raw materials leads to pressure on the cost side; b) The change of accounting standards makes the transportation expenses adjusted from sales expenses to operating costs. 2) Net profit margin: the net profit margin of 2022q1 is 9.62% (-0.19pct), which is less than the gross profit margin. The main reason is that the rate of sales expenses of the company decreases, and the rates of sales, management and R & D expenses are 9.52% / 1.66% / 1.60% respectively, with a year-on-year increase of -2.00 / + 0.15 / – 0.04pct respectively.
Various categories continue to promote innovation, and IP authorized funds realize circle breaking marketing. 1) Product side: in April 2022, the company launched a variety of new products such as integrated stove mq55, three eye stove mb81, one cover double drink bubble drink, and the product matrix has been continuously enriched. 2) Marketing: in February 2022, the company launched Doraemon officially authorized soybean milk machine, health cup, electric rice cooker and health pot, and broken circle marketing helped improve brand awareness.
Products, channels and overseas businesses made concerted efforts to promote the rapid growth of performance and maintain the “buy” rating. The company continues to improve its product matrix and channel layout. With the continuous development of overseas business through coordination with SEB group, the performance is expected to achieve rapid growth and maintain the “buy” rating. We predict that the net profit attributable to the parent company from 2022 to 2024 will be RMB 2.328/26.65/2.990 billion, corresponding to EPS of RMB 2.88/3.29/3.70, and the current share price corresponding to PE of 18.04/15.76/14.04 times.
Risk tips: repeated covid-19 epidemic, price fluctuation of raw materials, exchange rate fluctuation, intensified market competition, tight shipping capacity, etc.
