On April 28, Hong Kong stock appliance giant Hisense Appliances announced its financial results for the new quarter.
Looking at the fundamentals of financial report data alone, Hisense's home appliance revenue and net profit have achieved new growth in the first quarter of 2021, which is in line with market and analyst expectations.
Affected by this news, on April 29, when the Hong Kong stock market opened, Hisense Home Appliances share price trended well, rising by more than 2.73%. As of the close of the day, Hisense Home Appliances rose by 1.51% and A shares rose by 5.54%.
The stock price performance also seems to be related to the recent actions of Hisense Home Appliances. First, CEO Jia Shaoqian issued a statement saying that Hisense Home Appliances is a real multinational company and is going international, and then for the first time revealed the layout of automotive electronics.
So, under the condition of improving capital market performance, how is Hisense's financial report performance? Hong Kong Stock Research Institute will disassemble and analyze the latest financial report.
The main business speeds up again, the stock competition era still shows development anxiety
From the disclosed financial report data, it can be seen that Hisense's home appliance revenue has achieved further growth. In the first quarter of 2021, Hisense's home appliance revenue was 13.935 billion yuan, an increase of 83.70% from the 7.586 billion yuan in the first quarter of 2020.
Hong Kong Stock Research Agency believes that Hisense Home Appliances performed relatively well in the first quarter, which is related to business growth and market environment. Under the influence of major environmental factors, the comparison base for the first quarter of 2020 is low, and revenue growth rate is -12.68% year-on-year, showing negative growth. However, the epidemic has been brought under control, and the home appliance market economy has recovered and basically returned to the level before the epidemic.
On the other hand, as the temperature gradually rises in summer, the demand for refrigerators and air conditioners is gradually increasing. According to data released by China Electronics Information Network, China's refrigerator market has achieved substantial year-on-year growth. In the first quarter of 2021, the retail volume of the refrigerator market was 6.74 million units, a year-on-year increase of 43.9%; the same is true for the air-conditioning market, with air-conditioning sales reaching 789 in the first quarter of 2021. 10,000 units, an increase of 65% year-on-year.
Specifically, Hisense Home Appliances' main business is home appliance manufacturing, with white goods as the main business, accounting for 76.20% of revenue this quarter. Financial report data showed that the main business accelerated this quarter, with revenue of 10.619 billion yuan, a year-on-year increase of 37.15%.
This is mainly due to the continuous development of the ice washing business and the air-conditioning business. Hisense Home Appliances intends to develop into the overseas market, and the proportion of overseas revenue has increased. Prior to this, Hisense Group CEO Jia Shaoqian stated at the AWE2021 Expo that in 2020, overseas revenue will reach 54.8 billion, accounting for 39% of Hisense's revenue. Among them, the revenue of the home appliance sector will reach half in overseas markets. From the performance of overseas markets in 2020, it can be inferred that the overseas business of Hisense Home Appliances also has a good chance of achieving good growth this quarter.
However, it is worth noting that, in the context of today's home appliance market entering the era of stock, whether Hisense Home Appliances can continue to maintain high revenue growth still has some challenges that cannot be ignored.
According to AVC data, the scale of China's home appliance retail market in 2020 is 705.6 billion yuan, a year-on-year decrease of 11.3%. The decline of traditional large appliances is the most severe, of which the scale of air conditioners has the largest decline, reaching 14.8%.
In terms of market share, in addition to Hisense home appliances, Haier, Midea, and Gree also occupy a certain market share in the air-conditioning market. In 2020, Hisense's home appliance air-conditioning market share will drop by 0.5%. This also means that the follow-up revenue performance of Hisense appliances may still be affected by the domestic appliance market entering the era of stock.
In addition, the overseas market is still unclear. Although the overseas market still has some room for development, the current foreign epidemic has not been well controlled. In the short term, Hisense's overseas business will still face certain pressure.
In general, the revenue and business performance of Hisense's home appliances this quarter is worthy of recognition, but the uncertain overseas market prospects and the entry of the domestic home appliance market into the era of stock competition will still be the next problems Hisense Home Appliances will face.
Net profit has soared by more than 4 times, is it accidental or inevitable?
Financial report data shows that the net profit in the first quarter of 2021 reached 218 million yuan, an increase of 400.66% from the first quarter of 2020. The basic earnings per share in this quarter reached 0.16 yuan per share, which is in line with Hisense Home Appliances and institutions. Earnings expectations.
Prior to this, many brokerage agencies and analysts forecasted Hisense's first-quarter revenue data. Among them, the average predicted net profit for the first quarter of 2020 was 458 million yuan.
It is worth noting that the sharp increase in net profit this quarter broke the dilemma of "increasing revenue but not profit" in the first quarter of 2020. The net interest rate reached 1.56% this quarter, an increase of 0.58% from the 0.58% in the same period last year. .98%.
The Hong Kong Stock Research Agency believes that the surge in net profit has benefited from two points. On the one hand, gross profit and gross profit margin have been adjusted in the first quarter of 2021. The financial report shows that gross profit in the first quarter of 2021 reached 2.888 billion yuan, and the gross profit margin increased to 20.72%.
The increase in gross profit and gross profit margin was mainly due to the slowdown in the growth rate of cost expenditures in this quarter compared to the same period. The financial report shows that the cost of Hisense home appliances in the first quarter of 2021 was 11.047 billion yuan, an increase of 83.29% year-on-year. In terms of trends, the growth rate of cost expenditures is in a declining stage, which is good news for Hisense Home Appliances.
On the other hand, the eye-catching year-on-year growth rate of net profit is mainly due to the continued strength of Hisense's home appliance central air-conditioning business. According to AVC data, in 2020, Hisense's air-conditioning sales volume in the Chinese market will remain the industry's TOP3, with a market share of 21.43%.
In this quarter, Hisense Home Appliances completed the acquisition of Japanese Sanden Enterprises at a subscription price of 1.302 billion yuan. After the completion of this transaction, Hisense Home Appliances will hold approximately 75% of the voting rights of Sanden Holdings, and the scale of its air-conditioning business will be further increased. According to the latest financial report data of Sanden Holdings, the revenue in fiscal year 2019 reached 204.88 billion yen, which further contributed to the revenue of Hisense's home appliance air-conditioning business.
But careful analysis can reveal some of the hidden worries. A large part of the reason why Hisense's home appliance profits soared in the first quarter of 2020 was that in the first quarter of 2020, performance was severely affected by epidemic factors. Revenue and net profit showed negative growth, and the comparison base was low, but as the epidemic was brought under control, performance performance It is reasonable to basically return to before the epidemic.
In addition, the quarter-on-quarter net profit growth in the previous quarter can find that although the net profit of 218 million yuan in the first quarter of 2021 has achieved a growth rate of over 400%, the volume has declined. In the context of intensified competition in the black and white power markets, higher requirements have also been put forward for the net profit growth of Hisense Appliances in the later period.
Based on the above, although the net profit of this quarter is within the forecast range, it has broken the dilemma of "increasing revenue but not profit" in the same period of last year, but in the state of the net profit volume has not made a greater breakthrough, the market also needs Skyworth to give it. More new stories.