In recent years, the export revenue of Xinbao shares occupies a relatively high proportion, and the gross profit margin of sales is significantly lower than the average and median value of the industry
If small home appliance enterprises are under the influence of COVID-19 epidemic, they benefit from the dividends brought by the outbreak of residential economy. Then, in the “post-epidemic” era, really have can continue to produce products to meet the spiritual level of consumer demand is the foundation of small home appliance enterprises.
Recently, Guangdong Xinbao Electrical Appliances Holdings Co.,Ltd (hereinafter referred to as Xinbao, 002705.SZ) disclosed its annual performance in 2020, showing a trend of year-on-year growth in revenue and net profit attributable to its parent. However, this has not been recognized by the secondary market. On March 19, the company’s share price closed at 37.24 yuan per share, down 15.27% since March 5 and 35% since the initial high of 57.59 yuan per share on January 22.
Careful analysis, “investment times” researchers noted that the company in revenue and profits under the two also hidden some worries.
In terms of product lines, the revenue of its electric kitchen appliances increased from 4.2 billion yuan in 2017 to 4.644 billion yuan in 2019. During the same time period, its electric kitchen appliances also increased from 2.019 billion yuan to 2.35 billion yuan, while furniture appliances decreased from 1.353 billion yuan to 1.185 billion yuan.
It can be seen that the revenue of furniture appliances has declined, and the compound annual growth rate of the revenue of electric kitchen appliances is higher than that of electric heating kitchen appliances. In the future, in order to maintain the sustained and steady growth of revenue, the company needs to focus on the strategic layout of the above three main products and whether to consider adding new product categories in time.
In addition, from 2017 to 2019, the arithmetic average of foreign sales in the company’s main business was as high as 85 percent, the data showed. Considering the current international trade tensions may have an adverse impact on the global economy and industrial chain, it remains to be seen whether the company’s export revenue will seek improvement in stability in the future.
Investment Times researchers sent a communication letter to the company on the above performance, main product development plans and other issues, but had not received a response as of this publication.