Financial reporter Liu Jian
On April 21, the integrated stove leader Martian released its 2023 annual report, and the company's revenue and net profit both declined in 2023, which is the company's "double decline" for two consecutive years, and the company's net profit attributable to the parent company was 247 million yuan, a year-on-year decrease of 21.39%, and according to the company's dividend plan, it is proposed to distribute cash dividends of 6 yuan per 10 shares, with a total cash distribution of 245.5 million yuan, which is almost the same as the net profit attributable to the parent company.
The net profit attributable to the parent company fell by two percent
According to the Martian annual report, in 2023, the operating income will be 2.139 billion yuan, a year-on-year decrease of 6.03%, the net profit attributable to the parent company will be 247 million yuan, a year-on-year decrease of 21.39%, and the net profit attributable to the parent company will be 268 million yuan, a year-on-year decrease of 3.40%.
From a quarterly point of view, the company's performance in the fourth quarter of 2023 declined significantly, achieving revenue of 569 million yuan, a year-on-year decrease of 10.45%, and the net profit attributable to the parent company was only 24.6338 million yuan, a year-on-year decrease of 74.24%.
It is worth noting that the company has experienced a decline in revenue and net profit for two consecutive years, and these two indicators will decline by 1.81% and 16.29% respectively in 2022.
Martian Kitchenware Co., Ltd. was established in 2010 and listed on the Shenzhen Stock Exchange in 2020. The company specializes in the research and development, design, production and sales of new kitchen appliances, the main products include integrated stoves, integrated dishwashers, integrated sinks and other products, for many years in the integrated stove industry operating income first, the number of stores at the end of the reporting period exceeded 2,100.
The decline in the company's performance is related to the overall situation of the real estate industry, and the slowdown in the real estate industry directly affects the performance of kitchen appliances. Martian said that the demand of the kitchen appliance manufacturing industry is mainly driven by kitchen decoration and renovation, which is closely related to the development of the real estate and home improvement market. As the mainland economy enters a stage of high-quality development, the kitchen appliance market has shifted from incremental demand to stock replacement demand in the short and medium term.
In 2023, the overall demand of the consumer industry will show a K-shaped differentiation, with the growth rate of high-end proportion slowing down, and the transfer from mid-to-high-end to mid-to-low-end aggravated, prompting the industry to show a more obvious consumption classification. AVC omni-channel push total data shows that in 2023, the retail sales of integrated cookers in mainland China will reach 24.9 billion yuan, a year-on-year decrease of 4%, and the retail volume of integrated cookers will reach 2.78 million units, a year-on-year decrease of 4.2%.
According to the data of Aowei Cloud Network, the retail sales of dishwashers in mainland China will reach 11.2 billion yuan in 2023, a year-on-year increase of 9.6%, and the retail sales of dishwashers will reach 1.94 million units, an increase of 2.3% year-on-year. In response to the upgrading of user needs, integrated kitchen appliances have grown against the trend in the context of a complex macro environment and fierce internal competition. Integrated kitchen appliances represented by integrated stoves and integrated dishwashers have become "fragrant and sweet" under the trend of the times. In the future, with the increase of national income, the improvement of national requirements for the kitchen environment, and the gradual improvement of market recognition of integrated kitchen appliances, the market space for integrated stoves and integrated dishwashers may be broader.
The gross profit margin of the integrated stove increased, and the destocking was accelerated
The 2023 profit distribution plan announced by Martian is that it intends to distribute cash dividends of RMB 6 (tax included) to all shareholders for every 10 shares, without bonus shares, and without using provident fund to increase share capital, with a total cash distribution of RMB 245.5 million (tax included), and the remaining undistributed profits will be carried forward to future years. The company's cash dividends accounted for 99.31% of the net profit attributable to ordinary shareholders of the listed company in the annual consolidated statements, which was almost equivalent to the company's net profit attributable to the parent company for the year. The shareholding structure shows that the actual controller Huang Weibin directly holds 36.18% of the company's shares, and also indirectly holds 26.42% of the company's shares through two companies, Haining Dahong and Haining Dayou.
From the perspective of products, in the company's main business, the integrated stove products will achieve revenue of 1.878 billion yuan in 2023, accounting for a slight year-on-year decline in the proportion of revenue, reaching 87.78%, and the revenue of washing products will be 154 million yuan, an increase of 21.26% year-on-year, and the proportion of revenue will also increase from 5.58% to 7.21%.
From the perspective of gross profit margin, thanks to the large decline in operating costs, although the scale of revenue has declined, the company's gross profit margin has increased. In 2023, the gross profit margin of the company's integrated cooker industry will be 47.63%, an increase of 2.63% year-on-year. From the perspective of products, the gross profit margin of integrated stove products increased by 3.04% year-on-year.
From the perspective of product production and sales, the company's production and sales scale will decline in 2023, but the inventory will also decrease accordingly, and the sales, production and inventory of the company's integrated cooker products will be 2.139 billion units, 955 million units and 129 million units respectively, a year-on-year decrease of 6.03%, 15.14% and 12.01% respectively.
According to the data of Aowei cloud network, the Martian e-commerce business has ranked first in the online sales and sales integrated stove industry for many years. In 2023, the company's online retail sales of integrated cookers will account for 26.8%, with a market share increase of 1.9%, leading the second place by 15.6%, and the company's online retail sales of integrated cookers will account for 19.4%, leading the second place by 8%, and the online retail sales and retail volume of integrated cookers will remain the first.
From the perspective of R&D, the company has continued to increase R&D investment over the years, and in 2023, the company's R&D investment will hit a record high of 115 million yuan, an increase of 7.54% year-on-year, and the proportion of R&D investment in revenue will also increase from 4.68% to 5.36%.
In 2023, the company will launch more than 100 new products and upgrade product performance, including integrated stoves, dishwashers, gas water heaters, kitchen cabinets, etc., covering all channels, including distribution channels, online channels, home improvement channels, KA channels and engineering channels. At the end of the reporting period, the company had an industry-leading R&D team of more than 300 people, and the company had obtained more than 580 patents, including 25 invention patents.
The profitability of the company's main business has strengthened compared to 2022. However, some of the trust and wealth management products purchased by the company were at risk of being overdue, and an impairment loss of 40 million yuan was accrued. On March 2, 2023, the Company subscribed for Longsheng No. 1 Trust Product with its own funds of RMB50 million, with a maturity date of December 2, 2023. As of March 31, 2024, the Company has not received the principal and investment income of the above-mentioned trust products. The company is concerned that the above-mentioned trust wealth management products may face the risk of not being able to be redeemed. At present, the company has reported to the Heilongjiang Financial Supervision and Administration Bureau, and decided to sue, and is preparing materials.
Catch the trade-in policy dividend
Tianfeng Securities Research Report believes that under the background of weak real estate data, the performance of the integrated stove track has been relatively flat since 2023, and as the industry enters a new stage of high-quality development from the past high-growth stage, the head brand is still expected to rely on long-term technology accumulation and channel layout, as well as better brand awareness and market influence to enhance its business stability. As an industry leader, Martian has built a leading model of online and offline two-wheel drive, and at the same time continues to expand emerging traffic entrances such as KA and home improvement, and successfully creates the second growth curve of washing, which is expected to return to the growth channel with the improvement of industry demand in the future.
At this time, the trade-in action has brought a predictable increase to the home appliance consumption industry, and the replacement of old houses and kitchen renovation will be the next important growth point of decoration demand.
On March 13, the State Council issued the "Action Plan for Promoting Large-scale Equipment Renewal and Consumer Goods Trade-in", clarifying that this round of large-scale equipment renewal and consumer goods trade-in will carry out trade-in of automobiles, home appliances, and home improvement consumer goods. It is mentioned that through various ways such as government support and corporate concessions, residents will be supported to carry out local renovation of old houses, kitchens and bathrooms, continue to promote the transformation of homes for the elderly, and actively cultivate new consumption such as smart homes.
The "Action Plan for Promoting the Trade-in of Consumer Goods" issued by 14 departments including the Ministry of Commerce was released on April 12, which mentioned that it would promote the exchange of household appliances for "intelligence". The central government has allocated funds for the construction of a modern commercial circulation system and a county-level commercial system to support the construction of a renewable resource recycling system such as waste household appliances; encouraged qualified localities to provide subsidies to consumers to purchase green and smart household appliances; and supported household appliance enterprises to give preferential treatment to consumers who exchange old household appliances for energy-saving household appliances. Promote the "renewal" of home decoration and kitchen and bathroom. Encourage all localities to support the development of local upgrading and transformation of old house decoration, kitchen and bathroom, and home renovation for the elderly, and promote smart home consumption.
To this end, Martian closely follows the national policy and recently launched the "old for new" subsidy policy, the company allocated a special subsidy of 100 million yuan, covering the online and offline company's omni-channel distribution business, promoting the implementation of the trade-in policy by franchisees across the country, and further reducing the decoration budget for consumers to trade in the old and the old kitchen transformation. The offline series of products of the Martian store can enjoy a replacement subsidy of up to 1,000 yuan (the subsidy policy includes a full range of products such as integrated stoves, integrated dishwashers, heating and cabinets). In addition, the Martian's trade-in and old kitchen transformation, in response to consumers' different kitchen scenes and personalized cooking needs, has more business paving in the early stage, and currently has a more mature and professional kitchen reform program, whether it is a full kitchen reform user, a bureau reform user, or a battery replacement user, it can achieve rapid and standardized kitchen reform, and finally bring users a big upgrade in kitchen space, storage space, smoke absorption effect, sanitation and cleaning, cooking function, kitchen scene and other aspects of experience. The trade-in may provide greater support for the company's performance growth in 2024.
The trade-in policy has also brought sufficient momentum to the secondary market, and the stock price of Martian has also ushered in a wave of rise. The company's share price rose by more than 15% on April 12, and gained a 20% limit on April 16. Since April, the company's share price has risen more than 25%. As of April 22, the company's share price was 16.30 yuan per share, with a total market value of 6.671 billion yuan.