\u3000\u3000 Beijing Roborock Technology Co.Ltd(688169) (688169)
Core conclusion
Event: the company released the annual performance express in 2021. In 2021, the company achieved a revenue of 5.837 billion yuan, a year-on-year increase of + 28.84%, and a net profit attributable to the parent company of 1.402 billion yuan, a year-on-year increase of + 2.40%; In the single quarter of 2021q4, the revenue was 2.010 billion yuan, a year-on-year increase of + 29.62%, and the net profit attributable to the parent company was 386 million yuan, a year-on-year increase of – 17.84%.
Revenue continued to grow steadily. Driven by new self-cleaning products, domestic sales performed well in the fourth quarter. The company’s 2021q4 revenue increased by nearly 30% and increased by 6.74pct month on month compared with Q3. Q4 revenue maintained a high growth, mainly benefiting from the domestic business. At the end of August, the company launched the first generation of self-cleaning mopping machine G10. The company increased the marketing of this product with remarkable results and stood out from the fierce competition of self-cleaning products. According to ovicloud, the online sales market share of 2021q4 company was 17.38%, The year-on-year increase was 6.29pct, of which the listing rate of stone G10 line was about 12.54%, accounting for about 72% of the company’s online sales. It can be seen that the new self-cleaning G10 contributed the main increment of the company’s domestic sales in the fourth quarter. Overseas, the shortage of transportation capacity and the extension of transportation cycle affected the overseas supply, and the demand fell slightly during the overseas black five shopping festival, resulting in the slowdown of the overseas business growth of Q4 company.
Factors such as shipping freight, rising exchange rate and increasing cost investment jointly lead to the decline of profitability. In 2021, the company’s net interest rate was 24.02%, down 6.2pct year-on-year, Q4 net interest rate was 19.21%, down 11.1pct year-on-year, down 5.4pct month on month Q3, and Q4’s profitability further declined. On the one hand, the price of raw materials was still high due to the pressure of shipping and exchange rate, on the other hand, due to the need of new product promotion, the company increased its investment and sales expenses, At the same time, the R & D cost also increases to meet the market demand for new products. It is expected that the pressure of shipping and exchange rate will be gradually relieved in 2022. At the same time, with the expansion of income scale, the expenses will be further diluted, and the company’s profit can be improved.
Investment suggestion: the company’s revenue side maintains a benign growth. It is expected that the listing of self-cleaning new products in 2022 will further increase the domestic market share. At the same time, with the relief of shipping pressure, the company’s profitability will gradually pick up. From 2021 to 2023, the company is expected to realize a net profit attributable to the parent company of RMB 1.402/19.07/2.514 billion, with a year-on-year increase of 2.4% / 36.0% / 31.8%, maintaining the “buy” rating.
Risk tip: international shipping is tight, raw material supply risks, and market competition intensifies.
