\u3000\u3000 Midea Group Co.Ltd(000333) Midea Group Co.Ltd(000333) )
Event: the company released the annual report of 2021 and the first quarterly report of 2022.
In 2021, the company achieved a total operating revenue of 34336133 billion yuan, a year-on-year increase of + 20.18%, and a net profit attributable to the parent company of 28.574 billion yuan, a year-on-year increase of + 4.96%, of which 21q4 company achieved a total operating revenue of 80.418 billion yuan, a year-on-year increase of + 18.34%, and a net profit attributable to the parent company of 5.118 billion yuan, a year-on-year increase of – 1.66%; The company plans to pay dividends of 17 yuan (including tax) for every 10 shares, with a total dividend of 11.678 billion yuan and a dividend rate of 40.87%; In 2022q1, the company achieved a total operating revenue of 90.939 billion yuan, a year-on-year increase of + 9.54%, and a net profit attributable to the parent company of 7.178 billion yuan, a year-on-year increase of + 10.97%.
The revenue in 2021 slightly exceeded the expectation, and the recovery trend continued in 22q1.
In 2021, the company operated steadily and its revenue growth slightly exceeded expectations. In terms of products, HVAC / consumer appliances / Siasun Robot&Automation Co.Ltd(300024) and automation system achieved revenue of 141879 billion yuan / 131866 billion yuan / 27.281 billion yuan respectively, with a year-on-year increase of + 17.05% / + 15.78% / + 26.37% respectively. Among them, the three white electricity businesses of air conditioner / refrigerator / washing machine grew steadily, with a growth rate higher than the overall level of the industry, driving the market share level to continue to improve. According to the announcement data of the company, Further consolidate the leading position of refrigerators to + 1.3% / 0.2% / PC line, accounting for – 1% / 0.4% / 0.2% / PC line respectively The inflection point of Siasun Robot&Automation Co.Ltd(300024) and automation business operation has been realized. After the privatization of KUKA, the effects of business adjustment and business expansion have been gradually released, the promotion of new products has been significantly accelerated, and a series of new Siasun Robot&Automation Co.Ltd(300024) products (krdeltarobot), operating system (iiqka. OS), industrial Internet platform (iiqot), industrial simulation software (KUKA. Sim4.0) have been launched one after another. The ecology of Siasun Robot&Automation Co.Ltd(300024) products is becoming more and more complete, The growth of user orders and the expansion of downstream scenarios have opened up a new situation. In 21 years, KUKA achieved a revenue growth of + 27.7%, the highest after privatization. In particular, KUKA China has made a great breakthrough, with a revenue of + 48.4% year-on-year. The customer structure has been continuously improved. In addition to the same proportion of local automobile customers + 100% in the automotive field, the proportion of revenue in electric vehicles, construction machinery, new energy and consumer electronics has also increased significantly, and the proportion of new customer sales has exceeded 10%, The subsequent business flexibility is worth looking forward to. 22q1 company’s operation continues the warming trend, HVAC is expected to lead the double-digit growth rate, followed by ice washing, and small household appliances may still be average; KUKA 22q1 has a year-on-year revenue of + 18.3% and a year-on-year order volume of + 42.0%. Its business situation is good. We are optimistic about its business improvement and development prospects for a long time.
22q1 net interest rate increased and profitability improved month on month.
In 2021, the company achieved a comprehensive gross profit margin of 22.48%, with a year-on-year increase of -2.63pct, which was mainly disturbed by external factors such as the rise in the price of raw materials, the adjustment of freight accounting standards and the appreciation of exchange rate. In 21 years, the company’s sales / management / R & D / financial expense ratio was 8.34% / 2.99% / 3.50% / – 1.28% respectively, with a year-on-year increase of -1.29 / – 0.25 / – 0.04 / – 0.36pct. The sales expense was reduced due to the impact of the epidemic, and other expenses remained stable. Under the comprehensive influence, the net interest rate was 8.50% in 21 years, with a year-on-year increase of -1.18pct; 22q1 company achieved a comprehensive gross profit margin of 22.18%, with a year-on-year rate of -0.82pct. Although the above external factors are still exerting influence, if the impact of accounting standard adjustment is excluded, the gross sales difference of 22q1 company is 13.82%, with a year-on-year rate of -0.20pct, which is further narrower than that of 21q4 (- 0.88pct), and the profitability of its main business is improved month on month. The ratio of sales / management / R & D / financial expenses of 22q1 company was 8.36% / 2.62% / 3.22% / – 1.27% respectively, with a year-on-year increase of -0.63 / – 0.28 / + 0.18 / – 0.11pct. Under the comprehensive influence, 22q1 achieved a net interest rate of 8.00%, a year-on-year increase of + 0.04pct.
Continuous promotion of rolling incentives, new roe assessment, focusing on business quality
The company issued the restricted incentive plan for 2022 (to grant 12.63 million shares, accounting for 0.18% of the total share capital), the 9th stock option plan (to grant 109074 million shares, accounting for 1.56% of the total share capital), the 8th global partner plan (to withdraw 212 million yuan of special fund) and the 5th business partner plan (to withdraw 159 million yuan of special fund). The rolling incentive continued to advance and fully bound the interests of the upper and lower core teams, Ensure the medium and long-term sustainable development of the company. In addition, the company added new roe assessment indicators. For example, in the performance assessment of the lifting of restrictions on the sale of restricted stocks, the average roe is required to be no less than 20% in 22-23 years and no less than 18% in 24-25 years, which shows that the company pays attention to the improvement of business quality while pursuing profit growth.
Investment advice
In 2021, facing the operating pressure caused by the sharp rise of upstream raw materials and the appreciation of RMB, on the one hand, the company increased R & D investment and deepened channel reform to drive the reconstruction of the value chain and continuously tap the potential stock to ensure the steady growth of C-end business; On the other hand, through industrial extension and global breakthrough, promote the outward movement of the capability circle, constantly explore increment, gradually increase the volume of b-end business, and orderly expand the overseas market. Under the two-phase effect, the company operated steadily in the whole year of 21 years, the revenue slightly exceeded the expectation, the 22q1 reform dividend was still released, and the company’s operation continued to pick up. Looking back, the operating pressure caused by short-term factors is expected to be gradually alleviated. The profit restoration of the company’s C-end business is still highly deterministic. The b-end business benefits from the company’s competitive advantages such as technology, brand, channel, customer and capital accumulated in the long-term operation, and the volume is worth looking forward to. To sum up, we expect the net profit attributable to the parent company from 2022 to 2024 to be RMB 32.04 billion, 35.26 billion and 38.43 billion respectively, and the corresponding PE of the current stock price is 12.5, 11.3 and 10.4xpe respectively, maintaining the rating of “overweight”.
Risk tips
Market competition intensifies risks; Risk of price rise of raw materials; The epidemic repeatedly affects the risks of offline sales and cargo transportation.
