\u3000\u3 Guocheng Mining Co.Ltd(000688) 793 Shenzhen Breo Technology Co.Ltd(688793) )
Event: the company released the performance express of 2021. In 2021, the company is expected to realize an operating revenue of 1.190 billion yuan, a year-on-year increase of + 43.94%; The net profit attributable to the parent company was 909043 million yuan, a year-on-year increase of + 28.56%.
Comments:
The epidemic affected the company's revenue growth and slowed down. Q4 company achieved an operating revenue of 376 million yuan, a year-on-year increase of + 23.77%; The net profit attributable to the parent company was 249243 million yuan, a year-on-year increase of - 34.31%. In terms of revenue growth, Q4 revenue slowed down month on month. We believe that the main reason is that the company's offline channel revenue accounted for a relatively high proportion in the past. The epidemic led to the closure of offline stores or a significant reduction in traffic, which affected the growth of the company's revenue. On the online side, the company strengthened the upgrading of online channels and achieved the first category of eye massagers on tmall and jd.com during the double 11. In January 2022, the sales volume of Shenzhen Breo Technology Co.Ltd(688793) JD platform reached 129000 units / 64.113 million yuan respectively, with a year-on-year increase of 154 / 160% respectively. We expect that in 2022, with the improvement of the epidemic situation and the continuous development of online channels, the company's performance is expected to return to the high growth trend.
Pay attention to research and development, continue to promote innovation, and target the sleep market with precision marketing. In 2021, the company upgraded its supply chain system, completed the relocation and construction of factories, and further strengthened its supply capacity. In terms of R & D, Q4 company insisted on product innovation. Q4 company held a new product press conference and released many new products, such as travel eye mask, moxibustion shoes, seex2 eye massage instrument, dragon gripper scalp massage instrument, neckc2 neck massage instrument and so on. The intelligent moxibustion series products launched by the company further consolidated and strengthened the image of the company's "Chinese massage brand" and improved the market competitiveness of the products. According to the sleep status of young people, the company launched a series of dream activities, dream6 sleep cabin, breathing rabbit and other products to accurately market people and enhance user stickiness.
Profit forecast and investment rating: we expect the company's revenue of RMB 1.192/16.52/22.20 billion in the 21st-23rd year, with a year-on-year increase of + 44.3/38.5/34.4%; The net profit attributable to the parent company was 91 / 154 / 251 million yuan, a year-on-year increase of + 28.1 / 70.6 / 62.8%, corresponding to 49.01/28.73/17.65 times of PE. Maintain the "buy" rating.
Risk factors: the launch of new products is less than expected, the education and promotion of products is less than expected, the cost of raw materials rises, the market competition intensifies, the epidemic leads to the stagnation of offline sales, etc.
