\u3000\u3 Guocheng Mining Co.Ltd(000688) 793 Shenzhen Breo Technology Co.Ltd(688793) )
Investment summary
Event:
The company released the performance express in 2021, which is expected to achieve a revenue of 1.190 billion yuan, a year-on-year increase of + 43.93%; The net profit attributable to the parent company is expected to be 91 million yuan, a year-on-year increase of + 28.56%; It is expected to realize the deduction of non net profit of 76 million yuan, a year-on-year increase of + 20.97%. Among them, 21q4 is expected to achieve a revenue of 376 million yuan, a year-on-year increase of + 23.77%; The net profit attributable to the parent company is expected to be 25 million yuan, a year-on-year increase of – 34.30%.
Brief comment:
In 21 years, the overall revenue growth was relatively strong, and the revenue growth of Q4 slowed down due to the disturbance of the epidemic. 21q4 repeated point-to-point epidemics in many places across the country, the transportation hub and other commercial places where the company’s offline stores are located are obviously affected, and the passenger flow has decreased to a certain extent, which has a certain impact on the revenue of the company’s offline Direct stores. The unit price and gross profit margin of offline stores are both high, but there are many fixed expenses, resulting in negative growth of 21q4 profit. The company’s online e-commerce channels have maintained a good growth momentum through continuous optimization of market strategies. During the “double 11” period of 21 years, the company’s online sales volume was yoy + 86.6%, and the income from online e-commerce channels accounted for more than 50% and gradually increased.
Integrating the concept of traditional Chinese medicine, the scientific research is endowed with remarkable energy, and the categories are continuously enriched. Products: continue to maintain high R & D investment, constantly push new and higher prices, and avoid the risk of price reduction caused by product imitation by competitors. The company’s “relaxed appointment” global new product launch has carried out new iterations on the five series of products of head, eye, neck, scalp and moxibustion, and the new products of moxibustion box continue to lead the attention. Channel: pay attention to the construction of diversified channels, focusing on the direct marketing mode, supplemented by the distribution system. Marketing: effective drainage of offline Direct stores, hiring top stars for endorsement, constantly injecting young vitality and maintaining high-end tone into the brand.
Investment advice
Shenzhen Breo Technology Co.Ltd(688793) deep ploughing massage track for more than 20 years, which is the first share of health intelligent hardware in China. Massage small electric circuit has strong growth attributes, and the industry scale and concentration are expected to rise. The company has significant advantages in products, channels, marketing and operation, and its future potential can be expected. We expect the net profit attributable to the parent company to be 152 million yuan and 223 million yuan from 2022 to 2023, with a year-on-year increase of 67.6% and 46.7% respectively, corresponding to EPS of 2.44 yuan and 3.58 yuan respectively, and corresponding to PE of current market value of 29.50 times and 20.11 times respectively, maintaining the “buy” rating.
Risk tips
Risk of recurrent outbreaks; Price fluctuation of raw materials; Industry demand is less than expected; The risk of intensified industry competition; Risks such as new products falling short of expectations.
