\u3000\u3000 Midea Group Co.Ltd(000333) Midea Group Co.Ltd(000333) )
Event: in 2021, the company achieved an operating revenue of 341233 billion yuan, a year-on-year increase of + 20.06%, and 21q4 achieved an operating revenue of 79.891 billion yuan, a year-on-year increase of + 18.43%. 22q1 company achieved an operating revenue of 90.381 billion yuan, a year-on-year increase of + 9.55%.
Comments:
Why can 22q1 revenue ensure sustained and stable growth?
From the shipping end, from January to February, Midea’s domestic shipments of air and ice washing were + 0.00 / + 0.84 / – 3.03% year-on-year respectively, and its export shipments were -4.08 / + 2.56 / + 4.74% year-on-year respectively. The overall household electricity shipments increased steadily. From the perspective of average retail price, the company has generally raised the price of products in response to the cost pressure of raw materials. According to ovicloud data, the average online price of Q1 Midea air and ice washing is + 555 / + 27 / – 89 yuan year-on-year and the average offline price is + 688 / + 527 / + 324 yuan year-on-year respectively. The market share of air conditioning lines increased by 3.28pct year-on-year to 36.46%. We believe that with the improvement of sea freight, exchange rate and other factors, Q2 overseas revenue is expected to achieve stable growth as domestic sales.
22q1 achieved a gross profit margin of 22.18%, a year-on-year increase of -0.82pct, and a net sales profit margin of 8.00%, a slight increase of 0.12pct. Why did 22q1’s profitability recover significantly compared with Q4?
On the one hand, Q1 company further adjusted the terminal retail price and improved the gross profit margin according to the cost side pressure; On the other hand, the company comprehensively promotes digital reform, which provides more potential flexibility space for the company’s profitability. We believe that Midea, as the leader of China’s household appliances, has clear industrial advantages in operation, manufacturing and logistics. Its data midrange and Internet of things technology midrange with manufacturing characteristics provide the company with more flexibility and the ability to span the cycle in the current depressed market environment in China.
How to view the long-term development of beauty?
Like the company’s business layout, we believe that the company’s future development power is divided into two main lines: tob and TOC, and the contribution of Tob business to the company’s growth is gradually emerging.
The home appliance market in China and many western countries has gradually entered a mature stage. As the leader of global home appliance manufacturing, Midea can still achieve the stable growth of the main home appliance industry through globalization and high-end ways, but in the long run, the company also needs to find new growth support points.
Midea has made frequent moves in industrial technology related fields in the past two years. It has promoted the company’s industrial technology reserves and product launch through the acquisition of target products and increased investment in R & D. As a traditional manufacturing enterprise in China, Midea has clear advantages in manufacturing, R & D, management and procurement. In the process of transformation to b-end business, Midea can accelerate the promotion of the company’s b-end business products worldwide by using the technology, marketing and channel advantages accumulated by C-end business.
At present, the company has made layout in industrial Siasun Robot&Automation Co.Ltd(300024) , new energy vehicles, photovoltaic and other fields. The industrial technology division plans to sprint the revenue target of 100 billion within five years, which will become an important support for the company’s future growth.
Profit forecast and investment rating: we expect the company’s revenue in 22-24 years to be 380481414923/448188 billion yuan, a year-on-year increase of + 10.8 / + 9.1 / + 8.0%; The net profit attributable to the parent company was 327.10/378.93/432.43, respectively + 14.5/15.8/14.1% year-on-year, corresponding to 12.21/10.54/9.24 times of PE, maintaining the “buy” rating.
Risk factors: the price of raw materials continues to rise, the epidemic repeatedly leads to the stagnation of sales and production, the development of overseas markets is less than expected, and the development of Tob business is less than expected
