\u3000\u3000 Beijing Roborock Technology Co.Ltd(688169) (688169)
Event: Beijing Roborock Technology Co.Ltd(688169) announced the 2021 performance express. The company realized a revenue of 5.84 billion yuan in 2021, yoy + 28.8%; Achieved a performance of 1.4 billion yuan, yoy + 2.4%. After conversion, the company realized revenue of 2.01 billion yuan in 2021q4 single quarter, yoy + 29.6%; Achieved performance of 390 million yuan, yoy-17.8%. The company’s domestic sales grew rapidly, and the growth rate of Q4 revenue met expectations. The company’s Q4 performance is under pressure due to increased cost investment, tight transportation capacity, rising prices of raw materials and other factors. Looking forward to 2022, the volume of new products is expected to drive the growth of the company’s revenue. The expense rate is expected to narrow with the strengthening of brand effect, and the company’s ability to cope with shipping and cost pressure is gradually improved, and its profitability is expected to rebound.
Q4 single quarter revenue growth continued to increase month on month (Q3): 2021q4 company revenue growth was Q3 + 6.7pct month on month (Q3). Considering the continuous decline of Xiaomi mode, we expect the revenue growth of stone Q4 independent brand to be close to 40%. In terms of domestic and export sales, driven by the new self-cleaning sweeper G10 and floor washer U10, the company’s Q4 domestic sales increased rapidly. According to Ovi data, the online sales of Q4 stone brand floor sweeper in China is yoy + 108%, and the sales share of Q4 stone in the online market of floor washing machine in China ranks third in China. In terms of export sales, we calculated that the company’s overseas revenue grew by about 10% year-on-year, slowing down compared with Q3. We believe that the main reasons are as follows: 1) stone is mainly sold through online channels in the United States. During the Black Friday in 2021, the trend of American online traffic transferring to offline traffic is obvious, which has suppressed the revenue growth of stone’s American market (according to the data of sensormaticsolutions, the passenger flow of American offline retailers on Black Friday in 2021 is yoy + 47.5%). 2) Due to the impact of the high base in 2020, the growth rate of the overseas market of floor sweepers has slowed down, and the revenue of industry leader irobotq4 is yoy-16%. Looking forward to 2022, stone’s domestic sales share has continued to be at a high level of Q4 since the beginning of 2022, and domestic sales are expected to maintain rapid growth; In terms of export sales, the company exhibited three new products (two floor sweepers and one floor washer) at CES in January 2022 to broaden the price band of floor sweepers and enter the overseas floor washer Market. Driven by many new products, the growth rate of export sales is expected to increase in 2022 (only one new product will be launched by stone overseas in 2021).
The company increased its marketing efforts and its profitability declined: the net interest rate of stone 2021q4 in a single quarter was 19.2%, with a year-on-year increase of -11.1pct. We believe that the main reasons are: 1) the continuous rise in the price of raw materials has a negative impact on the gross profit margin; 2) Competition in the industry has intensified, and many brands have launched self-cleaning sweepers. In order to increase market share, establish brand image and increase cost investment. Looking forward to 2022, we believe that the profitability of the company is expected to improve compared with 2021q4, because: 1) after the launch of self-cleaning sweeper G10, the domestic product structure continues to improve; 2) The price of the overseas new product s7maxvult is relatively high, and it is expected to promote the upgrading of export structure after 2022q2 listing; 3) With the increase of the company’s domestic sales share, the brand effect is gradually strengthened, and the investment efficiency of sales expenses is expected to be continuously improved.
The company released the reduction plan of shareholders, directors, supervisors and senior executives: Stone Age plans to reduce its holdings of no more than 1704000 shares, accounting for 2.6% of the total share capital; Jinmi plans to reduce its holdings of no more than 1336000 shares, accounting for 2.0% of the total share capital; Dingdi plans to reduce its holdings of no more than 1.002 million shares, accounting for 1.5% of the total share capital; Gao Rong plans to reduce no more than 1.67 million shares, accounting for 2.5% of the total share capital; Qiming plans to reduce its holdings of no more than 1336000 shares, accounting for 2.0% of the total share capital; Wan Yunpeng, the director, plans to reduce his holdings of no more than 136000 shares, accounting for 0.2% of the total share capital; Chief financial officer Wang Xuan plans to reduce 839.0 shares; Director Sun Jia plans to reduce 726.0 shares. The time limit of this reduction plan is 6 months. Although the reduction plan is larger than the reduction plan in 2021, the reduction period is relatively longer (the reduction plan issued in 2021 has a period of 3 months).
Investment suggestion: Stone’s leading product power is the basis of future revenue growth. Streamline SKU and excellent operation and management ability to maintain its industry-leading profitability. Commercial floor sweepers, handheld and other categories are expected to gradually increase in volume. It is estimated that the EPS of stone from 2022 to 23 will be 28.78/35.44 yuan respectively, maintaining the investment rating of buy-a.
Risk tip: the epidemic situation worsens and the industry competition intensifies
