To see how a company is going in the future, it is best to start from two dimensions: First, look at the brand's trend, whether it is up or down. Second, look at the company's product trend, increase or decrease? If brand power and product power are up Going, this company's business is not bad, the future must be worth the wait.
On the morning of April 27, Vantage shares (002035) disclosed the 2017 financial report and the first quarterly report of 2018.
The report shows that in 2017, Vantage shares achieved revenue of 5.73 billion yuan, an increase of 30% year-on-year; net profit was 510 million yuan, an increase of 56% year-on-year; basic earnings per share was 0.88 yuan.
In the first quarter of 2018, Vantage Co. achieved revenue of 1.424 billion yuan, a year-on-year increase of 23%; net profit attributable to the mother was 115 million yuan, a year-on-year increase of 50%. Vantage shares are expected to earn 307 million to 354 million yuan in the first half of 2018, a year-on-year increase of 30%. -50%.
In terms of specific products, in 2017, the three main products of Vantage hoods, stoves and water heaters achieved revenues of RMB 2.32 billion, RMB 1.67 billion and RMB 1.01 billion, respectively, representing an increase of 33.1%, 33.7% and 23.0%, respectively.
Looking at the sales channel, in 2017, Vantage’s offline channel revenue accounted for 61.7%, up 23.6% year-on-year; revenue from e-commerce channels accounted for 22.4%, an increase of 56.9% year-on-year.
Overall, the gross profit margin of the Vantage products in 2017 further increased to 45.47%, an increase of 2.94 percentage points; the net rate reached 8.89%, an increase of 1.44 percentage points.
On the surface, the first quarter of this year saw a slowdown in revenue growth for Vantage shares. After careful analysis you will find that this is actually a more valuable growth than the 30% growth rate in 2017.
Why do you say that?
Let's look at a set of data: According to Ovid Cloud Network statistics, in the first quarter of 2018, the retail volume of the kitchen appliances market was 12.8 billion yuan, down 6.1% year-on-year; the retail volume was 13.669 million units, down 3.3% year-on-year. Amount of Qi Qi situation.
This means that in the first quarter of this year, Vantage shares achieved an increase of 29.1% (23% growth in self-growth + 6.1% negative industry growth) relative to the entire kitchen and electric appliance industry.
In 2017, the growth rate of Vantage shares was 30%. Notice that this was achieved in the context of 14.4% growth in the kitchen and electric appliances industry as a whole.
We may as well compare horizontally. In the first quarter of 2018, the electric appliance manufacturer of one of China's kitchen power Sanjie Electric Appliances Co., Ltd. had an increase in revenue of 16.89%, which was lower than the 23% increase of Vantage.
This is obviously an outstanding transcript.
So, how did Vantage's good performance achieve?
The interpretation given by Vantage shares is: Under the brand upgrade strategy, the company's brand effect is becoming increasingly prominent, the product structure is being adjusted, the channel assets are continuously thickening, and management efficiency is improved, bringing the company’s gross margin and net profit rate to steadily increase, and net profit realized. Good growth.
Has the era of high growth in kitchen appliances ended? Your judgment may have been wrong
Since the beginning of this year, the cognition shift in the kitchen power market has been a typical example. As one of China's kitchen powers, one of the boss electronics, the share price has dropped sharply despite its outstanding performance.
Why does this abnormal situation occur?
I think that in addition to investors' collective reduction of the boss electrical executives who cannot understand this layer of factors, there is another factor, that is: There is a view that the rapid growth of the kitchen and electric industry may end earlier. The logic is based on: The government The continuous regulation of real estate will undoubtedly affect the development of the kitchen appliance industry.
I have a negative attitude towards the above view.
My opinion is that the kitchen and electric industry does have a close relationship with the real estate industry, but real estate is by no means the only factor that affects the development of the kitchen and electric appliances industry. It is not even an important factor. We must come to realize that the real estate industry can only influence the extended market of the kitchen and electric appliance industry. Can not affect the structural market of the kitchen electricity industry.
What does that mean?
I believe that everyone has this kind of life experience: Among all household electrical appliances, the variety of kitchen appliances is complex, and new products emerge in an endless stream. No matter white electricity or black electricity, they do not possess this property.
To give an example: 10 years ago, our kitchen might have only a hood, stove, microwave oven, rice cooker, and water heater; but today, our kitchen has not only a hood, cooker, microwave oven, rice cooker, water heater, induction cooker, but also washing. Dishwashers, water purifiers, coffee makers, kitchen grinders, breadmakers, etc. etc.
Obviously, the kitchen concept 10 years ago was not the same as the concept of kitchen appliances today. This is what I call the kitchen appliance industry's product structure changes.
Therefore, kitchen electricity is a dynamic concept, its connotation and extension are constantly changing, and this change has nothing to do with the growth of real estate.
In addition, the relationship between air-conditioning and real estate is also very close, but not many people worry that the government's continued regulation of real estate will affect the development of the air-conditioning industry. You see, in the same real estate regulation context, Gree's revenue in the first quarter of 2018 is still achieved 33.29% growth.
I have always been optimistic that the kitchen and electric industry will continue to grow rapidly in the next five years. It should be noted that in 2017, the scale of the entire Chinese kitchen electricity industry was still less than 100 billion yuan, while the market size of single air-conditioning products reached 280 billion yuan. There is no reason why the size of the industry is so small. What is the ideal size of the kitchen electricity industry? I think it should be 250-300 million yuan.
To say the least, even if the kitchen power market is saturated, it does not mean that the mainstream brands no longer grow. The mainstream brands will get bigger cakes by taking advantage of weak brands. Currently Gree air-conditioning is just like that.
China's home appliances have precipitated the 'three leading + three tigers' pattern in the capital market
We might as well look at China’s home appliance companies from a higher perspective. Looking at the two dimensions of business operations and capital markets, we will be surprised to find that, at present, the capital market has precipitated the 'three leading + three tigers' pattern.
Which three leaders, three tigers?
The six home appliance companies performed better. They are: Midea Group (000333), Gree Electric Appliance (000651), Qingdao Haier (600690), Boss Electric (002508), Little Swan A (000418), Vantage (002035).
The three leading giants are of course the three major white power companies. They not only have large enterprises, but also have excellent operating results and have dazzling capital markets.
At present, the revenues of the three white giants are between 148 billion yuan and 240 billion yuan. The annual profit is between 15 billion yuan and 22.4 billion yuan, and the market value of the company is between 100 billion yuan and 3400 billion yuan.
The Three Tigers are Boss Electric, Little Swan, and Vantage. Although their revenues are not large, they have excellent operating performance, good growth, and excellent performance in the capital market.
Unfortunately, in the home appliance companies with good operating performance and good capital market performance, they did not see the color TV companies.
Brand and R&D investment is a strategic investment of Vantage
At the 2017 Vantage 2017 Suppliers Conference held on January 12, 2018, Van Yee, Chairman of Vantage Co., Ltd. reaffirmed: Vantage will continue to adhere to the goal of 'three years 10 billion, six years 20 billion', and strive to become a global High-end quality kitchen space leader corporate vision.
Pan Yejiang said: 2018 will be a leap year for Vantage.
Where does Pan Yejiang's self-confidence come from? I think in both aspects, Vantage's brand power and product power are improving simultaneously.
Let's look at what Vantage did in terms of high-end brand building.
In 2017, Vantage focused on 'High-end Smart Kitchen Power' brand positioning, focused on the young and well-to-do class, followed the core of brand communication entertainment and scene-based communication, and started with the trend of young and trendy fashion at home and abroad to create a brand of fashion. , Technology, international image.
Specifically, Vantage cooperated with CCTV and six sets of CCTV to implement hard-to-use television coverage. In conjunction with Hunan Satellite TV and Jiangsu Satellite TV, the company launched the “Taste of the World is Qing Qing” and the masked singer will guess the second season. , and other TV dramas and variety shows were implanted. On the Internet and mobile Internet, cooperation with Netease News, Tencent Video, Youku Video, iQiyi and other platforms was carried out, and various popular IPs such as “Culinary Confessions” were conducted. Brand implants.
Vantage also launched the “Your Taste” series short series together with the public number of the new generation and co-curated the “Food and Fashion” Vantage Shanghai Fashion Week with the well-known fashion designer Hu Sheguang, and the joint game “Nuclear Fusion” cross-border game circle, deepening and Users effectively connect with the 'Transformers' to form a 'wisdom alliance', using Hollywood's strong IP appeal to export Vantage's sense of technology and intelligence.
Vantage also grandly signed the new generation of spokesperson Zhao Liying and Lin update.
In short, with the help of high popularity, high-profile programs, and interesting brand communication, Vantage's awareness and reputation in younger groups have improved significantly, and it has effectively promoted the high-end image of Vantage products. This is reflected in Vantage product level, which is 2017. The gross profit margin of Vantage products further increased to 45.47%, an increase of 2.94 percentage points, and the effect was significant.
Let's look at R&D: Vantage insisted on independent research and development, planned product development and technological innovation in line with the 'marketing generation, development generation, and reserve generation'. In 2017, we achieved a number of important technological innovations and improvements, and introduced magic disks using innovative technology from our company. Kitchen stove, 'Mommy stove', Magic mirror V2 hood, 'Tianjing' series hood, gas water heater TA2 and other high-end smart kitchen appliances and new three-body health dishwasher, intelligent wall-hung boiler and other innovative new types of kitchen appliances, market efficiency beyond expectation.
In 2016, Vantage's R&D investment was 137 million yuan, and it further increased to 184 million yuan in 2017, an increase of 34%. According to an insider of Vantage, there will be even greater growth in R&D investment in 2018.
Therefore, the view that Vantage's sales expenses have increased substantially, brand investment is too high, and the profitability of the company is affected, is actually a kind of superficial view.
Since 2016, Vantage products have undergone great changes, and the high-end trend is very clear. Objectively, Vantage brands must be synchronized with product forces, at least not as a drag factor. Therefore, Vantage brand high-end construction is a strategic visionary decision. .
In fact, all household appliance companies with vision have actively promoted the high-end brand construction in recent years. Haier, Midea, Skyworth, TCL, etc. are all the same. This is the general trend. Companies that continue to take the low-cost route have no future.
The capital market has a higher expectation for Vantage shares, which is mainly based on this company's revenue. The profitability of both indicators shows a predictable and good growth. In fact, Vantage is a relatively high revenue and net profit growth rate for China Kitchen Electric Sanjie. .
It is reported that the rapid growth of Vantage has already made it obvious to its peers. A high-level executive of a kitchen electric company told me in private: 'The Vantage company has shown a strong offensive in recent years, and it is very different from other professional kitchen and electric companies'. Its implication is: I have to be careful.