Boss Electric (002508) Company in-depth research report: Engineering side opens up growth space, new category continues to lead

Boss Electric (002508) Company in-depth research report: Engineering side opens up growth space, new category continues to lead
Company background: Kitchen electric faucet crossing the cycle. At the beginning of the company’s listing, it was committed to smoke stoves. After 2011, it gradually developed various kitchen appliances such as built-in gas stoves, electric ovens, dishwashers, water purifiers, and steam boxes. At present, the revenue of new categories has reached 15%, And the market share is among the top in the industry, and the diversified layout of product categories has begun to bear fruit.Historically, the company’s revenue and profit growth has steadily passed through cycles, which is inseparable from the company’s stable equity governance structure, an incentivized management team, a comprehensive coverage of the sales network and efficient channel management.In the past two years, due to the downturn in real estate, the company’s growth rate has improved, but after the low-line market channels have gradually entered the harvest period and the strong development of the engineering end business, the company is expected to return to a stable growth track. Kitchen appliance industry: channel structure adjustment and category diversification opened a new situation. From the perspective of channels, sustainable reconstruction and extensive decoration have penetrated widely, and the proportion of kitchen electrical engineering channels has continued to increase.1) The proportion of conventional fine decoration is much lower than abroad, and the proportion of fine decoration in third- and fourth-tier cities is much lower than that of first-tier. The conversion of hardcover houses gradually expands from the first-tier and second-tier to low-tier areas.High demand for traditional kitchen appliances; 2) The allocation rate of new kitchen appliances such as dishwasher steamers in well-decorated homes is significantly lower, and most of them are still in the initial market cultivation stage.The new category market still has room for improvement. From the perspective of categories, the long-term new category of kitchen appliances is still in the early stages of development, and the market is still small. At present, it is still oriented by foreign brands. In the future, it will increase the penetration of new products and promote the localization of products.And the growth of the brand ‘s own market share. The company’s growth space: engineering channels benefit from the real estate fine decoration bonus, new product expansion and perfect layout. 1) The advantages of the engineering end will help the company’s overall market share to further increase.At present, the overall proportion of hardcover houses is not high, especially the penetration rate of fine decoration in the third and fourth-tier markets is less than 10%. The competition pattern of engineering channels is more concentrated than retail channels. High-end brands such as bosses, Fangtai, and Siemens occupyMost of the market share has a trend of continuous improvement.The company as a whole has a higher market share in the second-tier market, and the third-tier and fourth-tier markets have weaker advantages. In the future, it is expected to further increase the third-tier and fourth-tier market share by leveraging engineering channels. 2) New products such as dishwasher, steam box, central range hood have led the industry.The company’s market share of new categories of tableware, steamers and other products has ranked among the top three in the industry for two consecutive years. At present, the company has established a steamer category division, vigorously promoted the second category of steamers, and launched a number of new localized products; integrated stovesIn terms of business, the strategic cooperation with Golden Emperor has deepened, the production capacity has been expanded, and the price space for functional innovative products is large.In addition, the leading central range hood category is exclusively for the B-end, which will help the company strengthen its engineering channel advantage. Profit forecast and estimationOperating income in 2021 will be 78.86/86.52/97.3.1 billion to 79.75/89.50/100.810,000 yuan, a ten-year growth rate of 7.40% / 12.23% / 12.64%; net profit attributable to mother is 16.13/17.62/19.4.5 billion adjusted to 16.19/18.31/20.84 ‰, an increase of 9 in ten years.84% / 13.11% / 13.81%.The EPS is 1.71/1.93/2.20 yuan, 杭州夜网论坛 corresponding to the current expected PE multiple of 18.87/16.69/14.66 times. The company’s stable business strategy is clear. The engineering channel has merged with the first-mover advantage. The central range hood category will further consolidate this advantage and create barriers to the engineering channel. In addition, the company’s new categories of dishwashers, steamers and integrated stoves will rely on the existingThe channel network and brand strength continue to lead the industry, and the future growth space is continuous and highly certain.The current company estimates about 19 times, and the industry’s major comparable companies predict an average PE of about 13 times in 2020. Taking into account the real estate suppression factors, the marginal impact of attenuation is estimated to repair the space and the company’西安耍耍网s leading premium, giving the company 20 times PE in 2020, according to 2019?The EPS in 2021 is 1.71/1.93/2.20 yuan performance forecast, target price of 38.6 yuan, the rating was adjusted from “overweight” to “buy”. Risks indicate a stalled macroeconomic growth or tightened real estate policies, intensified industry competition, and the expansion of new categories has fallen short of expectations.