\u3000\u30 Shenzhen Zhenye(Group)Co.Ltd(000006) 51 Gree Electric Appliances Inc.Of Zhuhai(000651) )
Event: in 21 years, the company achieved operating revenue of 187869 billion yuan, a year-on-year increase of + 11.69%, and net profit attributable to parent company of 23.064 billion yuan, a year-on-year increase of + 4.01%. Q1 company achieved an operating revenue of 35.260 billion yuan, a year-on-year increase of + 6.24%, and a net profit attributable to the parent company of 4.003 billion yuan, a year-on-year increase of + 16.28%.
Q1 revenue grew steadily, with high dividends highlighting the allocation value. The growth rate of operating revenue of 22q1 company was slightly slower than that of Q4 (+ 17.55%). In terms of domestic sales, Gree ranked first with 37.4% share in 2021. From January to February, Gree Electric Appliances Inc.Of Zhuhai(000651) affected by the weak demand for home appliances in China, the shipment volume was – 13.2% year-on-year, accounting for 31.3% of the market, a slight decrease of 3.64pct compared with 21q1, and the average price of Wuxi Online Offline Communication Information Technology Co.Ltd(300959) air conditioner at Gree retail end of Q1 was + 181 / 496 yuan year-on-year respectively. The adjustment of the average price reduced the impact of the decline in demand on the company to a certain extent, and can effectively alleviate the pressure on the cost side. In terms of export, the export shipments in the first two months were + 18.4% year-on-year, with a market share of 16.13% and + 0.14pct year-on-year. In 2021, by region, the company’s domestic and foreign sales revenue increased by + 10.78 / + 12.56% year-on-year respectively. The company plans to distribute a cash dividend of 20 yuan (including tax) to all shareholders for every 10 shares, totaling 11.073 billion yuan. Calculated according to the closing price on May 5, the dividend rate is 5.84%.
The industrial layout has been gradually improved, and the new energy and industrial manufacturing sectors have achieved high growth. Revenue by product: air conditioning / household appliances / industrial products / intelligent equipment / green energy achieved operating revenue of 131712/48.82/31.95/8.58/2.907 billion yuan respectively, with a year-on-year increase of + 13.96 / + 7.96 / + 38.60 / + 42.77 / + 63.13% respectively. As a traditional leading enterprise of air conditioning in China, the company has begun to transform and upgrade from “traditional manufacturing” to “intelligent manufacturing” and from the field of household appliances to industrial upgrading in recent years. In the past 21 years, the company’s industrial products / intelligent equipment / green energy sector achieved high growth, and the growth rate of green energy business exceeded 60%. At the end of October 2021, the company completed the acquisition of Gree titanium. From November to December, Gree titanium achieved an operating revenue of 694 million yuan. We believe that in the future, with industrial integration and business volume, Gree titanium will provide gree with more revenue and performance increment in new energy vehicles, lithium batteries and energy storage business. In April 22, the company transferred 29.48% of Zhejiang Dun’An Artificial Environment Co.Ltd(002011) 29.48% of the shares and became the controlling shareholder of Zhejiang Dun’An Artificial Environment Co.Ltd(002011) to further improve the layout of the company’s upstream industrial chain. At the same time, with Dunan’s product advantages in new energy auto parts, central air conditioning and other sectors, the company is expected to further expand its product and technical advantages and realize coordinated development.
The performance growth accelerated and the gross sales difference improved. The net profit attributable to the parent company of 22q1 was + 16.28 year-on-year, significantly improved compared with Q4 (- 12.48%). From the level of gross profit, the gross profit margin of 22q1 was 23.65%, with a year-on-year decrease of -0.77pct, narrower than that of 21q4 (- 9.71pct). From the perspective of gross sales difference, the gross sales difference of 22q1 was 18.11%, which was + 1.55pct compared with that of 21q1. The sales / management / R & D / financial expense ratio of 22q1 company was 5.54/3.51/3.75/ – 1.61% respectively, with a year-on-year increase of -1.34 / + 0.93 / – 1.13 / – 0.59pct respectively. 22q1 company achieved a net profit margin of 10.16%, a year-on-year increase of -0.24pct.
The book cash was abundant, and the net operating cash flow increased significantly.
1) Q1 company’s monetary capital + trading financial assets totaled 129032 billion yuan, up + 10.34% from the beginning of the period, mainly due to the growth of the company’s operating revenue; Accounts receivable at the end of Q1 totaled 14.817 billion yuan, up + 7.05% from the beginning of the period; The total inventory at the end of Q1 was 42.269 billion yuan, which was basically the same as that at the beginning of the period. In order to cope with the rising cost of raw materials, the company still maintained a high level; The sales rebate of other current liabilities at the end of 2021 totaled 52.669 billion yuan, a year-on-year increase of – 5.62%. Compared with the beginning of 22q1, other current liabilities at the end of 22q1 decreased quarterly from 21 years or due to the decrease of the proportion of rebate provision; The deferred income tax assets at the end of 22q1 were + 2.41% compared with the beginning of the period and + 16.55% compared with the same period in 21q1, reflecting good statement quality and growth potential.
2) from the perspective of turnover, the turnover days of inventory / accounts receivable / accounts payable of 22q1 company are + 52.8 / + 15.0 / + 24.9 days respectively compared with 21 years, and the turnover efficiency is significantly reduced.
3) the net cash flow from 22q1 operating activities was 3.394 billion yuan, up from – 4.265 billion yuan in the same period last year, mainly due to the increase in cash received from the sale of goods and the provision of labor services and other cash related to operating activities.
Profit forecast: we are optimistic about Gree’s inherent advantages in manufacturing, channel, management and R & D as the leader of China’s household appliance manufacturing. The company actively carries out industrial transformation and diversified layout in new energy, intelligent equipment and other fields to support the company’s long-term development. We expect that from 2022 to 2024, the company will realize an operating revenue of RMB 206709 / 228761 / 245704 million, a year-on-year increase of + 9.0 / + 10.7 / + 7.4%, and a net profit attributable to the parent company of RMB 25791 / 29171 / 32413 million, a year-on-year increase of + 11.8 / 13.1 / 11.1%.
Risk factors: repeated outbreaks outside China, the development of Tob business is less than expected, the price of raw materials rises sharply, the industry competition intensifies, and the development of new products is less than expected.
