Event: according to the company's 21-year performance KuaiBao, the company achieved a total operating income of 1.294 billion yuan in 2021, + 51.58% of the same period last year, and the net profit of shareholders of listed companies was 110 million yuan,-22.66% of the same period last year. Of this total, 21Q4 achieved revenue of 433 million yuan, + 45.9% year-on-year, and net profit of 21 million yuan,-57.7% year-on-year.
The increase in the volume of the whole machine business, the increase in costs and provisions affecting the profit level the company achieved a high increase in revenue in the past 21 years, mainly due to the increase in orders for the whole machine foundry business of vacuum cleaners and the increase in sales income of the whole machine foundry business. The significant decline in performance is mainly due to higher procurement prices of raw materials, R & D expenditure and increased wages of personnel. In addition, the company acquired a new subsidiary of Suzhou Shangteng in 21 years to carry out the whole machine OEM business. In 2021, the audit income of Suzhou Shangteng was 333 million yuan, the net profit was-7.848 million yuan, and the total cost was-10.072 million yuan (asset impairment + credit impairment). If the expenses are reduced, the net profit of Shang Teng is 2.224 million yuan, and the net profit of the company is 120 million yuan, which is-15.6% compared with the same period last year. In addition, we expect that the cost of shipping freight may also be partly affected by the fact that the company has overseas factories to bear the freight on its own.
The company also announced the acquisition of 45% equity and related party transactions of Suzhou Shangteng Technology Manufacturing Co., Ltd., a holding subsidiary, with its own capital of RMB 115 million to acquire 45% of the holding subsidiary of Suzhou Shangteng. If after the completion of this equity acquisition, the company's shareholding in Suzhou Shangteng will be increased from 55% to 100%, the scope of the company's consolidated statement will not change as a result of this equity acquisition. At the same time, according to the supplementary agreement signed by the parties to the transaction, for Suzhou Shangteng in the first quarter of 2022 (January-March), the first quarter of 2022 (January-June), the first three quarters of 2022 (January-September) and 2022 (January-December), respectively, the parties agreed on the assessment profit value as part of the equity payment prerequisites, that is, the assessment profit in the first quarter of 2022 reached 4.26 million yuan. The half-year assessment profit in 2022 will reach 10.65 million yuan; the assessment profit in the first three quarters of 2022 will reach 18.105 million yuan; and the assessment profit in 2022 will reach 25.56 million yuan. If any of the payment prerequisites are not met, the overall valuation of the target company will be based on 10 times of the profits assessed by Suzhou Shangteng in 2022, and the acquisition price of the target company will be finally determined according to 45% of the overall valuation.
The change of the previous acquisition plan is mainly due to the fact that in order to expand the production scale of Shangteng in Suzhou, the new plant currently has a construction area of 23720.93 square meters with a lease period from April 1, 2022 to March 31, 2027. As 45% of Suzhou Shangteng shareholder Tang Longfu has no intention to make additional investment in Suzhou Shangteng. As a result, the company changed its acquisition plan for the remaining 45% stake this time. Suzhou Shangteng is mainly engaged in the R & D, production and sales of hand-held vacuum cleaners, floor washers, floor sweeping robots, cloth cleaning machines and other cleaning appliances. The main high-quality customers include Beijing Shunzao Technology Co., Ltd., Hunting Technology (Suzhou) Co., Ltd., Suzhou simple Youwei Technology Co., Ltd., Hunan Anke Electronic Technology Co., Ltd., Jiangsu Mei Clean Electrical Appliances Co., Ltd., etc.
Investment advice: the company's disclosure of the acquisition plan fully shows the importance of the whole machine business and its confidence in growth. The company binds a number of core customers, the future order quantity has a certain guarantee. At the same time, the company actively expand the scale of production capacity to ensure that there is sufficient capacity to complete customer mobility order demand. According to the company's 21-year performance KuaiBao, based on the increase in plastic prices since the beginning of this year, we have appropriately reduced the gross profit margin of hoses and accessories. We estimate that the net profit of the company from 2021 to 2023 will be 1.1 billion yuan (the previous value is 15.22 billion yuan) and the corresponding dynamic valuation is 20.9x, 13.3x and 10.1x. Maintain a "buy" rating.
Risk tips: raw material price fluctuation risk; market competition risk; alternative product risk; exchange rate risk; OEM permeability is lower than expected. The data of KuaiBao's performance are preliminary accounting data, and the specific data are based on the data disclosed in the company's 2021 annual report.
