\u3000\u3 Bohai Water Industry Co.Ltd(000605) 336 Zhejiang Sanfer Electric Co.Ltd(605336) )
Event:
On April 28, 2022, Zhejiang Sanfer Electric Co.Ltd(605336) released the first quarterly report of 2022. The company realized an operating revenue of 191 million yuan (+ 23.34%), and a net profit attributable to the parent company of 38 million yuan (+ 10.31%).
Key investment points:
The volume and price of the main business of integrated stoves increased, and the revenue increased rapidly. In 2022q1, the company’s revenue was 191 million yuan (+ 23.34%), or driven by the double rise of volume and price of the main business of integrated stoves. According to the data of ovicloud, in 2022q1, the company sold 5600 sets (+ 51.78%) of integrated stove online, with a sales volume of 60 million yuan (+ 74.18%), and the growth rate was higher than that of the industry (sales volume / volume – 4.27% / + 23.50% respectively); The sales volume / market share accounted for 5.17% / 6.95% respectively, with a year-on-year increase of + 1.91 / + 2.02pct, and the market share increased; The average price is 10757 yuan (+ 14.76%), the high-end is gradually promoted, and the product structure continues to improve.
Profitability is under short-term pressure, and the decline in gross and net interest rates narrowed month on month. 1) Gross profit margin: the gross profit margin of 2022q1 is 44.34% (-2.98pct), mainly due to the high price of raw materials in the first quarter. Marginal improvement occurred, with a decrease of 0.58 PCT compared with 45.24% (- 3.56 PCT) in 2021q4; 2) Net interest rate: the net interest rate in 2022q1 was 19.68% (-2.32pct), with a decrease of 4.50pct compared with 21.51% (-6.82pct) in 2021q4; 3) Expense side: in 2022q1, the expense ratio increased, and the sales / management / R & D expense ratio was 12.34% / 7.68% / 7.85% respectively, with a year-on-year increase of -1.90 / + 1.81 / + 3.96pct respectively, and the R & D investment increased significantly.
Steadily promote new products, empower new businesses, help terminal sales, and strengthen the brand image of a big country. 1) Product side: in 2022q1, d8-7b integrated steaming and baking stove is released, which is applicable to small house type and t1-8b integrated steaming and baking stove. The appearance is upgraded while reducing the cooking waiting time. The product matrix is constantly enriched to meet the needs of differentiation; 2) Channel side: conduct new business training in March to improve the operation capacity of stores and promote terminal sales; 3) Marketing side: in March, the brand stories were broadcast frequently in CCTV-1 “big country brands” to enhance the brand value.
Riding the east wind of the integrated stove industry, the product power continued to improve, new businesses gave full play to their vitality and maintained the “buy” rating. With the release of positive signals from the real estate industry in 2022 and the improvement of the scenery of integrated stoves, the company is expected to continue to benefit and maintain the “buy” rating. We predict that the net profit attributable to the parent company from 2022 to 2024 will be RMB 319 / 405 / 527 million, corresponding to EPS of RMB 2.25/2.85/3.71, and the current share price corresponding to PE of 11.89/9.38/7.20.
Risk tips: repeated covid-19 epidemic, fluctuations in the real estate market, fluctuations in the price of main raw materials, intensified competition in the integrated stove market, and less than expected new product research and development.
