Producer: Sina Finance Listed Company Research Institute
Author: Kun T
As of April 30, 2024, the annual reports of A-share household appliances listed companies have been fully disclosed. Among them, the small household appliance industry, which is divided by Shenwan's secondary industry, will achieve a total operating income of 109.012 billion yuan and a net profit attributable to the parent company of 9.611 billion yuan in 2023.
Compared with the white and black electricity industries, the overall performance scale of listed companies in the small household appliance industry is smaller, and the performance differentiation is more obvious. Among the 22 listed companies, there are 3 companies whose net profit attributable to the parent company is still in a state of loss, namely Aishida, ST Dehao, and Beiyi, among which the performance of Aishida, which has been listed for many years from profit to loss, continues to decline. At the same time, the gross profit margin and net profit margin indicators of the small household appliance industry are also relatively differentiated, with the highest gross profit margin close to 60%, while the lowest gross profit margin in the industry is only a single digit.
Joyoung, Delmar and other 6 companies both fell in revenue and net profit, Aishida and Bei Easy turned from profit to loss for many years after listing
A total of 22 listed companies in the small household appliance industry will achieve operating income of 109.012 billion yuan and net profit attributable to the parent company of 9.611 billion yuan in 2023.
Specifically, there are 3 companies with a revenue scale of more than 10 billion, including Supor, Ecovacs, and Xinbao, which achieved operating income of 21.304 billion yuan, 15.502 billion yuan, and 14.647 billion yuan respectively, a year-on-year increase of 5.62%, 1.16%, and 6.94%. Among them, Supor's net profit attributable to the parent company with a revenue of more than 20 billion yuan reached 2.18 billion yuan, ranking first among listed companies.
At the same time, there are also 3 companies that will still fall into losses in 2023, namely Aishida, ST Dehao, and Beiyi.
Among them, Aishida, as a veteran kitchen appliance manufacturer, landed in the capital market as early as 2010 and was profitable before 2021, but since 2021, Aishida has fallen into deep losses. From 2021 to 2023, the losses will be 89 million yuan, 79 million yuan, and 378 million yuan respectively. In 2023, Aishida's performance will continue to decline, with operating income decreasing by 16.42% year-on-year, and net loss significantly expanding by 380.64% year-on-year.
And Bei Easy is also from profit to loss after many years of listing. The main products of Bei Easy, such as shoulder and neck massagers, have been used as Internet celebrity products, coupled with the endorsement effect of traffic stars, and are deeply popular among consumers. However, in recent years, its performance has declined one after another, although the net profit attributable to the parent company in 2023 will increase by 58.97% year-on-year, and its net loss will still be 51 million yuan.
From the perspective of performance growth, there are 11 companies that will shrink in 2023, of which the largest decline is Liren Technology, which fell 34.69% year-on-year; There are 7 companies with a decline in net profit attributable to the parent company in 2023, of which the largest decline is Aishida, with a year-on-year decrease of 380.64% in net profit attributable to the parent company.
In 2023, only 10 of the 22 listed companies of small household appliances will achieve a double increase in revenue and net profit attributable to the parent company, namely Supor, Xinbao Shares, Roborock, Feike Electric, Xiaoxiong Electric, Dechang Shares, Kaineng Health, Biyi Shares, Rainbow Group, and Bei Sui. Among them, most of the companies are profitable, and only Bei Yi is still in the red. In the same period, there were 6 companies with both revenue and net profit attributable to the parent company, namely Joyoung, Delmar, Fujia, Aishida, Liren Technology, and Beyikang.
The highest gross profit margin is negative, and ST Dehao's gross profit margin and net profit margin are both at the bottom
From the perspective of the overall industry, the profitability indicators of the small household appliance industry are clearly differentiated.
The highest gross profit margin is 59.32%, which is also the growth of the gross profit margin of Bei Easy for many years. However, it should be noted that its net sales margin is -3.94%, which shows that the company's profit margins are largely eaten into by various expenses.
Among the 22 listed companies, 20 companies have a sales gross profit margin of more than 20%, and companies below 20% include Johnson and ST Dehao.
From the perspective of sales net profit margin indicators, only 3 companies have negative net profit margins, namely Bei Easy, Aishida, and ST Dehao.
It should be noted that ST Dehao is at the bottom of the sales gross profit margin and net profit margin in the small household appliance industry. In 2023, ST DH's gross sales margin is only 8.75%, and the net sales margin is -28.82%.
Feike and Bei Easy are the kings of "heavy marketing and light R&D"? Industry marketing generally goes far beyond R&D
The investment of home appliance companies in sales expenses and R&D expenses can largely reflect the company's focus on marketing and technology investment, and at the same time, it can also have a direct impact on the scale of its net profit.
On the whole, the sales expenses of listed companies of small household appliances are generally much higher than the R & D expenses, and some companies even show that the sales expenses are more than ten times that of the R & D expenses.
From the point of view of the sales expense ratio, it is 53.94% of Bei Easy, which is far beyond its peers, and behind this is that it has been frequently inviting traffic stars to endorse and fancy marketing, which has also directly led to its negative net profit margin when the gross profit margin is close to 60%. The sales expense ratio is followed by Ecovacs' 34.17% and Feike Electric's 29.19%. It should be noted that the abnormally high sales expense ratio often means that the company focuses on marketing and ignores R&D, which is very different. In 2023, Feike Electric's sales expenses will be 14.92 times that of R&D expenses, 11.66 times that of this indicator, and 6.42 times that of Ecovacs. From this point of view, Feike Electric Appliances and Bei Easy may be called the king of "heavy marketing and light R&D" in the small household appliance industry.
In terms of R&D expense ratio, although the scale of R&D expenditure varies from company to company, the R&D expense ratio is below 10%. The highest is Roborock, with R&D expenses of 619 million yuan in 2023 and a R&D expense ratio of 7.15%. The lowest R&D expense rate is Feike Electric, with R&D expenses of 99 million yuan in the same period, and the R&D expense rate is only 1.96%.
From the perspective of year-on-year changes in R&D expenses, the R&D expenses of most companies in 2023 will increase compared with previous years, but at the same time, there are 5 companies with a year-on-year decline in R&D expenses, namely Aishida, Beyikang, Joyoung, Lake Electric, and ST Dehao, of which the largest decline is ST Dehao, with a year-on-year decrease of 37.55% in R&D expenses.
The inventory level of the industry is generally low, and there are 4 companies with a negative net business cycle
From the perspective of inventory level, compared with the black and white electricity industries, the inventory scale of listed companies in the small household appliance industry is generally low, below 5 billion yuan. Among them, the highest is Ecovacs' inventory of 2.828 billion yuan in 2023, followed by Supor's 2.263 billion yuan. And most small household appliance companies have an inventory balance of hundreds of millions of yuan.
In terms of inventory turnover, Rainbow Group's inventory turnover days are unusually high compared with its peers, at 228.93 days. followed by Aishida and Liren Technology, both of which are more than 150 days. To a certain extent, the slower inventory turnover rate indicates that the products may be unsalable, and the company's inventory liquidity is poor.
From the perspective of the net business cycle (inventory turnover days + accounts receivable turnover days - accounts payable turnover days), similar to the performance of inventory turnover days, the net business cycle of Rainbow Group, Aishida, Liren Technology and Beiding shares is more than 100 days. It should be noted that there are also 4 companies with negative net business cycles, namely ST Dehao -43.44 days, Joyoung -27.95 days, Ousheng Electric -20.44 days, and Roborock -14.21 days.