PDF《Company Report: China Creative》

GTJA Research 国泰君安研究 国泰君安研究 国泰君安研究 国泰君安研究 China Creative Home 中国创意家居 (01678 HK) Company Report See the last page for disclaimer Page

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24 Company Report: China Creative Home (01678 HK) Sunny Kwok 郭日升 +852

2509 2642 公司报告:中国创意家居 (01678 HK) sunny.

kwok@gtjas.com.hk

12 May

2014 Market Leader in Electric Fireplace Industry, Initiate with Buy 电壁炉市场领导者,首予 买入 Rating: Buy Initial 评级: 买入 买入 买入 买入 (首次研究) 6-18m TP 目标价: HK$2.30 Share price 股价: HK$1.670 China Creative Home Group (CCHG) is the largest branded electric fireplace manufacturer in China, with 11.1% market share in 2012. The Company engages in sale of electric fireplaces and home décor products in China. CCHG has

2 production facilities in Fujian and estimated annual production capacity of framed electric fireplaces cores was 277,500 units in 2013. Electric fireplace business accounted for 57.5% and 69.5% of the Company'

s revenue and segment results in 2013, respectively. Frost &

Sullivan expects domestic sales of electric fireplaces in China to reach RMB14.0 billion in 2016, representing a CAGR of 15.9% during 2013-2016. We expect CCHG'

s annual production capacity of framed electric fireplaces cores to reach 627,500 units in 2016. The Company aims to target property developers for new property construction and refurnishing projects. We expect CAGRs of CCHG'

s sales and net profit to be 16.8% and 18.1% during 2013-2016, respectively. The Company'

s EPS is expected to reach RMB0.202, RMB0.242 and RMB0.277 in 2014-2016, down 3.4% but up 19.8% and 14.6% YoY, respectively. Our TP of HK$2.30 represents 25.0% discount to our DCF model and the TP is also equivalent to 22.8% and 27.5% discount to weighted average

2014 PER of HK-listed household products companies (exclude CCHG) and HK-listed electric appliances manufacturers, respectively. Valuation is attractive and we initiate Buy on the Company and the TP represents 8.8x

2014 PER, 7.3x

2015 PER and 6.4x

2016 PER. Major risks are sustainability of high profit margins and delay in capacity expansion. 中国创意家居是中国最大的品牌电壁炉制造商 中国创意家居是中国最大的品牌电壁炉制造商 中国创意家居是中国最大的品牌电壁炉制造商 中国创意家居是中国最大的品牌电壁炉制造商, , , ,

12 年市场份额达到 年市场份额达到 年市场份额达到 年市场份额达到 11.1%. . . . 公司主要制造 及销售电壁炉及家居装饰产品,于福建有

2 个生产基地,13 年有框电壁炉炉芯年产能为 277,500 个.公司电壁炉业务于

13 年分别占总体收入及经营溢利 57.5%及69.5%. 弗若斯特沙利文预期国内电壁炉销售额将于

16 年达到人民币

140 亿元,于13-16 年的复 合年均增长率为 15.9%.我们预期公司于

16 年有框电壁炉炉芯年产能将达到 627,500 个. 公司打算开拓以房地产开发商为目标的大型物业建设及翻新项目.我们预期 我们预期 我们预期 我们预期公司 公司 公司 公司收入及净 收入及净 收入及净 收入及净 利于 利于 利于 利于 13-16 年的复合年均增长率分别为 年的复合年均增长率分别为 年的复合年均增长率分别为 年的复合年均增长率分别为 16.8%及及及及18.1%. . . . 公司每股净利于 14-16 年预期将 分别达到人民币 0.202 元、0.242 元及 0.277 元,分别下降 3.4%、增长 19.8%及14.6%. 目标价 2.30 港元较折现现金流模型折让 25.0%,同时分别较