Robam Appliances, products include range hoods, gas stoves and disinfection cabinets, as well as electric pressure cookers, induction cookers, electric kettles, food processors and other supporting kitchen appliances, the leading products range hoods, gas stoves and disinfection cabinets, accounting for more than 90% of revenue.
Let's take a look at the underlying data first:
From 2015 to 2017, as of June 30, 2018, the operating income was 4.543 billion yuan, 5.795 billion yuan, 7.017 billion yuan and 3.497 billion yuan respectively, and the non-net profit was 817 million yuan, 1.147 billion yuan, 1.406 billion yuan and 596 million yuan respectively
From 2015 to 2017, as of June 30, 2018, the operating income was 4.543 billion yuan, 5.795 billion yuan, 7.017 billion yuan and 3.497 billion yuan respectively, and the non-net profit was 817 million yuan, 1.147 billion yuan, 1.406 billion yuan and 596 million yuan respectively
Among them, range hoods are the main source of its revenue, accounting for more than 55%, followed by gas stoves, accounting for about 28%.
In the kitchen appliance industry, the upstream is stainless steel, cold-rolled plate, aluminum, copper, glass and other bulk raw material industries and motor and other parts industries
The downstream is directly oriented to the end consumer, and the sales model is mainly a non-buyout agency system
Its terminal channels are mainly KA (national home appliance chains and building materials and home furnishing supermarkets, such as Suning Electric, Gome Electric, Five Star Electrical, etc.), local channels (local home appliance chains, building materials and furniture supermarkets and department stores) and specialty stores, as well as some emerging channels such as engineering procurement, online sales, and cabinet franchise stores
Among them, engineering procurement is to cooperate with real estate companies for hardcover room decoration, such as Vanke, Evergrande, Country Garden, etc.; Online sales are mainly in Jingdong, Tmall, Suning Tesco stores
Benefiting from the rapid development of the kitchen appliance industry, the performance of Robam Appliances has grown rapidly, and since its listing, we can divide its fundamental development into three stages:
2008-2011;
2012-2016;
Since 2017.
Let's annotate this crucial diagram as follows:
Note that the red line in the figure is the return on invested capital, and the other three dotted lines are the influencing factors after dismantling
Obviously, there are 3 significant phases here:
period of decline (2008 to 2011);
sustained upward period (2012 to 2016);
inflection point decline period (2017);
Among them, the continuous rise from 2012 to 2016 coincidentally corresponds to the rapid growth of stock price performance, and the two stages of decline before and after coincide with the decline of the stock price in the first and last parts
The first important question is: why did ROE decline, stock prices and valuations from 2010 to 2012 after the IPO in 2010?
According to the DuPont methodology, the return on invested capital (ROE) depends on three main factors: total asset turnover, net profit margin, equity multiplier or leverage, and the formula is as follows
ROE = Net Profit / Shareholders' Equity
= (Net Profit / Sales Revenue) * (Sales Revenue / Total Assets) * (Total Assets / Shareholders' Equity)
= Sales Margin * Asset Turnover * Financial Leverage Ratio
Predict the follow-up and listen to the next breakdown
It does not constitute any investment advice, the stock market is risky, and you need to be cautious when entering the market