Summary of the report:
The vacuum cleaner hose industry is the best, with the first market share. Chunguang Technology listed on the motherboard in 2018, mainly engaged in vacuum cleaner hoses and accessories products, and has been gradually extended to hanging ironing machines, dishwashers and outdoor cleaning industrial dust removal systems and other fields. The sales volume and market share of vacuum cleaner hoses are the first in the country.
The major shareholder is Chen Zhengming, who, as a founder, accompanied the company's growth all the way. Chen Zhengming is now the chairman of the company. As a concerted actor with his wife and two sons, Chen Zhengming holds more than 60% of the shares. As the soul of the company, Chen Zhengming is still responsible for the management of the company.
The core competitive advantages include: (1) the variety of products is rich and can be diversified, systematized and customized.
(2) pay attention to R & D and have established a stable technical R & D team. (3) it is rich in high-quality customer resources and maintains long-term cooperation with Midea, Lake, Dyson, Shark, Bisheng, Siemens and other well-known clean electrical brands at home and abroad.
Operating financial analysis: in 2020, the operating income was 854 million yuan, an increase of 51.72% over the same period last year, and the net profit was 142 million yuan, an increase of 33.62% over the same period last year. In 2020, the gross profit margin of hoses was 38.16%, which was lower than that of the previous year, and the gross profit margin of accessories was 22.30%, which was relatively stable. The reason for the beautiful performance in 2020 is that due to the impact of the epidemic, the popularity of vacuum cleaners has increased, leading to the growth of sales of hoses and accessories.
The proportion of accessories has been increasing in the past three years from 2018 to 2020, and it is expected to continue to increase in the future.
Investment points: layout vacuum cleaner whole machine business, coordinated development. In 2020, the acquisition of 55% stake in Vietnam SUNSTONE and Suzhou Haili Electric Appliances, these two companies are doing vacuum cleaner business R & D, production and sales, can play a certain synergy, and contribute to a certain performance.
Investment suggestion: assuming that the company's revenue growth rate from 2021 to 2023 is 58.43%, 20.62% and 21.69% respectively, the net profit growth rate from 2021 to 2023 is 28.17%, 19.23% and 20.74% respectively, then the company's revenue from 2021 to 2023 is 1.353 billion, 1.632 billion and 1.986 billion respectively, and the 2021-2023 net profit is 182 million, 217 million and 262 million respectively, corresponding to 2021 EPS. Suppose it is given 25 times PE, and the target price is 33.85 yuan, covering the "buy" rating for the first time.
Risk hint: the operation and management of the whole machine is not as expected, and the prosperity of vacuum cleaners is downward.