Event: the company achieved operating income of 1.295 billion yuan in 2021, + 51.59% year-on-year, and net profit of 110 million yuan,-22.47%, of which 2021Q4 realized operating income of 433 million yuan, + 45.92%, and net profit of 21 million yuan,-57.16%. The cash dividend per share is 0.30 yuan (including tax).
The growth rate of the whole machine business is eye-catching, and the traditional business has grown steadily: in 21 years, the company's revenue from vacuum cleaner hoses and accessories was 880 million, which was + 3.6% last year, and the new machine OEM business was 410 million, accounting for 32% of the total revenue. Of these, revenue from 21H2 hoses and accessories was 420 million,-24.5% year-on-year, and the OEM business was 320 million, up significantly from 90 million yuan in the first half of the year. The company's revenue from hose and accessories business declined in the second half of the year. We believe that on the one hand, it is due to the rise in raw material prices and the impact of shipping on customer orders, on the other hand, due to the overseas epidemic situation, it has a certain impact on the normal production of overseas factories. The sharp increase in the whole machine business is mainly due to the company's entry into the floor washer OEM market in 21 years, binding to core major customers such as Chase and Shun Chuang. at the same time, the company also carries out machine OEM for Midea, uwant and other brands, superimposing the positive contribution of Singles Day in the second half of the year, so that the company shows rapid growth in the whole machine business.
The company increases the investment of the whole machine, cost and provision affect the profit level: in 2021, the company's gross profit margin is 20.7%, year-on-year-9.82pct, net profit rate is 8.26%, year-on-year-8.42pct; of which 2021Q4 gross profit margin is 16.45%, year-on-year-12.61pct, net profit rate is 4.41%, year-on-year-11.97pct. From the point of view of molecular companies, the net profits of Vietnam CGH Company / Vietnam suntone Company / Suzhou Shangteng Company are all negative. There are several reasons for the decline in the company's profit level: 1. In 2021, due to the relatively large increase in the price of bulk materials such as ABS, there will be a large range of changes in raw material costs. two。 The company has newly developed the whole machine OEM business in the past 21 years, so it needs to invest a certain cost in the investment of the whole machine mold and R & D personnel. 3. Due to the low exchange rate of the US dollar, the exchange losses of the company's overseas operations are also expected to have an impact. 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 previously disclosed the audit table of Suzhou Shangteng, a subsidiary, with a total cost of-10.072 million yuan (asset impairment + credit impairment). If the original 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 2021, the company's sales, management, R & D and financial expense rates were 1.03%, 5.86%, 3.54% and 0.74%, respectively, compared with the same period last year. 21Q4 quarterly sales, management, R & D and financial expense rates were 0.63%, 3.99%, 4.12% and 2.38%, respectively, compared with the same period last year. 0.27,-1.29, + 1.55, + 1.87pct.
The company's financial expense rate has increased significantly, mainly due to the increase in interest expenses and the decrease in interest income. The increase in the company's Q4 R & D expenses is mainly due to the company's annual increase in R & D spending on the whole machine, which is + 68.41% compared with the same period last year, of which the holding subsidiary Suzhou Shangteng invested 10.7023 million yuan in R & D, accounting for 23.4% of the total R & D investment.
Investment advice: the company's previous disclosure of the acquisition plan for Suzhou Shangteng subsidiary fully shows its attention to the whole machine business and its confidence in growth. At present, 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 annual report and performance KuaiBao, we will not change the previous forecast for 22-23 years, and the company's net profit in 2022-2024 is expected to be 1.74pm 2.28 / 284 million yuan (22-23 years ago 1.73 / 228 million yuan); the corresponding dynamic valuations are 13.6x, 10.4x and 8.3x, respectively. 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.