\u3000\u3 Guocheng Mining Co.Ltd(000688) 793 Shenzhen Breo Technology Co.Ltd(688793) )
Shenzhen Breo Technology Co.Ltd(688793) released the performance express for 2021: in 2021, the company achieved a revenue of 1.189 billion yuan, yoy + 43.93%, and a net profit attributable to the parent company of 90 million yuan, yoy + 28.56%; Among them, 21q4 achieved a revenue of 376 million yuan, yoy + 23.77%, and the net profit attributable to the parent company was 25 million yuan, yoy-34.30%.
Key points supporting rating
Product innovation and channel optimization have led to rapid revenue growth. In 21q4, the epidemic situation in China is repeated, and the offline retail recovery is slow. Under the background of increasing product penetration, the company’s revenue still maintains a high growth level. 1) In terms of products, the company adheres to product innovation, continues to launch a variety of new intelligent portable massage products, including neck, head and other series, expands moxibustion series products represented by intelligent moxibustion box, and continuously enriches the product matrix; 2) In terms of channels, while the impact of the epidemic on transportation hub stores has not fully recovered, the company continues to optimize the layout of offline Direct stores, increase the proportion of mall stores, optimize and consolidate the advantageous channels of e-commerce, develop new sales channels and improve the ability of precision marketing. According to the official flag war report, the double 11 Shenzhen Breo Technology Co.Ltd(688793) online sales in 2021 increased by 86.6% year-on-year, JD platform sales + 111% year-on-year, far higher than the industry average.
Due to the change of channel structure under the epidemic, the performance of 21q4 company is under pressure in the short term. 21q4 net profit attributable to parent company yoy-34.3%, short-term pressure on profitability, mainly due to: 1) rising price of raw materials and increasing cost pressure; 2) The epidemic situation in China has been repeated, and the operation of offline Direct stores is still affected, but the expenses such as store rent and personnel cost remain unchanged, affecting the profitability; 3) Double 11 and double 12 promotion nodes, the proportion of e-commerce channels with low gross profit margin increased, and the investment in marketing expenses increased. As the company continues to optimize the product structure and adjust the store structure, the scale effect is enhanced, and the profitability of the company is expected to improve steadily.
Valuation
The company actively promotes the optimization of product structure and channels to help the continuous improvement of market competitiveness. Considering the negative impact of the epidemic on offline stores, the company adjusts the profit forecast of the company from 2021 to 2022. It is estimated that the EPS of the company from 2021 to 2023 will be 1.48 yuan / 2.46 yuan / 3.67 yuan respectively, corresponding to a P / E ratio of 48.8 times / 29.3 times / 19.6 times; Maintain buy rating.
Main risks of rating
The risk of intensified market competition; The risk of repeated outbreaks; Raw material price fluctuation risk, etc
