Per AI Express, on December 28, 2023, Huatai** released a research report commenting on Vantage shares (002035).
The new management has a new atmosphere to accelerate the development of the sinking market.
The company has been deeply involved in the field of kitchen appliances for more than 30 years, and is one of the earliest kitchen appliances enterprises in China, located in the second echelon in China. In 2022, the company completed the general election, and a new management team with Mr. Pan Yejiang as the core was elected. Since then, the company has aimed at the sinking market, accelerated product iteration, strengthened digital marketing capabilities and refined management. Since 2022, the company's revenue has grown steadily, and its profitability has gradually recovered. We expect the net profit attributable to the parent company in 23-25 years to be 51 billion, 58.5 billion, 66.5 billion. As of 2023 12 28, comparable companies have an average PE of 11X in 2024, giving the company 11X PE in 2024 with a target price of 759 yuan, maintaining an "overweight" rating.
The old and new management teams are replaced.
In 2014, the Pan family with Mr. Pan Yejiang as the core became the owner of the company, and as of the end of the third quarter of 2023, the Pan family held 20 percent of the company69% of the shares, during which the company continues to promote the replacement of new and old management. In 2022, the company completed the general election, and Mr. Pan Yejiang was appointed as the chairman and president of the company, and the new management team was basically formed.
Channel products synchronous efforts to accelerate the development of the sinking market.
The consumption of kitchen appliances in the domestic sinking market is elastic. According to the monitoring of Aowei cloud network, the total sales volume of kitchen and bathroom electricity sinking channels in the first three quarters of this year was 65200 million yuan, a year-on-year increase of +228%, the sinking market with counties and townships (towns) as the core has once again become an important area for kitchen appliance brands to find growth points. The company actively embraces new retail channels and looks for increments through sales networks such as Tmall Premium and Jingdong Home Appliance Stores. At the same time, the company is also continuously improving the operational efficiency of the stock market. In 2021, the company gradually strengthened its digital marketing capabilities and actively helped and guided dealers. In addition, the company accelerates the iterative upgrading of traditional categories, vigorously expands new categories such as integrated cooking centers, and continuously enriches and improves the product matrix. Driven by the joint drive of channels and products, the company's revenue has grown steadily since 2022.
Investment Recommendation: Maintain "Overweight" rating.
The improvement of channel operation efficiency and the optimization of product structure have led to an increase in the expectation of marginal improvement in revenue. We expect the company's revenue from 2023 to 2025 to be 630.3 billion yuan, 684.8 billion and 751 billion yuan, and the net profit attributable to the parent company was 51 billion, 58.5 billion, 66.5 billion. As of 2023 12 28, comparable companies have an average PE of 11X in 2024, giving the company 11X PE in 2024 with a target price of 759 yuan, maintaining an "overweight" rating.
Risk warning: the product upgrade is not as expected;E-commerce competition intensifies the risk;Store expansion is less than expected risk.
*: Huibo Investment Research).
Disclaimer: The content and data in this article are for reference only and do not constitute investment advice. Do so at your own risk.
Edited by Tsang Kin-fai).
National Business Daily.