Event: Jianlin Home released the 2021 Annual report and the 2022 Quarterly report. In 2021, the company achieved an operating income of 4.712 billion yuan, an increase of 22.87% over the same period last year, a net profit of 376 million yuan, an increase of 3.11% over the same period last year, and a net profit of 324 million yuan, an increase of 6.87%. Of this total, 2021Q4 achieved operating income of 1.212 billion yuan in the current quarter, up 5.07% from the same period last year; net profit from home was 75 million yuan, down 27.96% from the same period last year; and net profit from non-return was 56 million yuan, down 24.63% from the same period last year.
In addition, 2022Q1 achieved operating income of 1.138 billion yuan, an increase of 6.67% over the same period last year; net profit of 96 million yuan, down 7.41%; and net profit of 85 million yuan, down 10.89% from the same period last year.
Diversified layout of healthy industrial ecology, good and stable cooperation among major customers. In the past 21 years, the income of kitchen and bathroom products, water purification products, other household products and non-household products was 32.22 per cent and 6.71 per cent respectively, up by 31.20 per cent, 14.73 per cent, 2.46 per cent and 5.08 per cent respectively. The company ploughs the healthy home industry and relies on the advantages of technology and high-end manufacturing to form an industrial ecology covering kitchen and sanitation, clean water, livable air, health care, manufacturing services, technical services, and so on. gradually build a "healthy home" life "," commercial "engineering", "smart" customization and other diversified development pattern. The company's main customers include Kohler, Musk, Moen, Jiebi, 3M Company, Conligan, Lili Group, Magna, Ferguson, Haier Smart Home, Midea and other international well-known enterprises. the long-term and stable customer relationship enables the company to obtain continuous high-quality orders, gradually enhance the influence of the company's brand, and lay the foundation for expanding other customers and markets. The company will give full play to its technical advantages, shorten the R & D and design cycle, actively respond to customer product requirements, and meet the market development trend in a timely manner. As of December 31, 2021, the company has 2262 effectively authorized patents at home and abroad, including 253 invention patents and 1752 utility model patents.
Keep ploughing overseas markets, and speed up the development of domestic markets
From a regional point of view, 1) in overseas markets, the operating income of overseas markets in 2021 was 3.678 billion yuan, an increase of 24.32 percent over the same period last year. In 2021, the company will accelerate the development of new products and customers, and continue to improve the operation capacity of Jianlin, an overseas manufacturing base in Thailand. With the rising demand for overseas household products and the impact of the epidemic on the supply chain in Southeast Asia, the company's overseas business has expanded steadily. 2) in the domestic market, the operating income of the Chinese market in 2021 was 998 million yuan, an increase of 17.45% over the same period last year. The company increases strategic investment in the Chinese market, actively speeds up the development of new markets, new organizations and new business type, promotes the transformation and upgrading of marketing in channels, products and teams, and continues to increase the market strategic layout of "real estate hardcover, brand upgrading, health and care industry".
22Q1 profit achieved month-on-month repair, during the period of good cost control, the company's comprehensive gross profit margin of 22.76% in 2021, a year-on-year decline of 4.17pct, mainly due to the sharp rise in the price of raw materials. 22Q1's comprehensive gross profit margin was 22.72%, down 1.36pct from the same period last year and 1.92pct higher than 21Q4.
In terms of period expenses, the expense rate during 2021 was 14.19%, a decrease of 2.48pct compared with the same period last year, and the sales / management / R & D / financial expense rate was 2.43%, 11.02%, 5.30%, 0.74%, respectively, and decreased by 0.38/1.55/0.36/0.56pct respectively. The expense rate during 22Q1 is 13.42%, slightly lower than the same period last year (0.04pct), and the sales / management / R & D / financial expense rate is 2.68%, 10.58%, 5.57% and 0.16%, respectively, and + 0.29/-0.83/+0.34/+0.50pct, respectively. Under the combined influence, the 21-year net return rate of the company was 7.99%, down 1.53pct from the same period last year. 22Q1's homing net interest rate was 8.45%, down 1.28pct from the same period last year and 2.26pct higher than 21Q4.
Investment suggestion: Jianlin Home will start "technology-driven, health-driven, brand-driven" in 2021.
Three-wheel drive development strategy, steady growth of overseas business, accelerated development of the domestic market, and steadily promote the all-round development of the healthy home industry. We estimate that the operating income of Jianlin Home from 2022 to 2024 will be 54.67,63.18 and 7.222 billion yuan, up 16.02%, 15.57% and 14.31% over the same period last year, and the net profit will be 4.21,4.92 and 563 million yuan respectively, an increase of 11.87%, 16.86% and 14.43% over the same period last year, corresponding to the PE of 11.8x, 10.1x and 8.9x.
Risk hint: the industry competition aggravates the risk; the raw material price fluctuates sharply; the exchange rate fluctuation risk.