\u3000\u3 Guocheng Mining Co.Ltd(000688) 169 Beijing Roborock Technology Co.Ltd(688169) )
Event: the company released the 2021 annual performance express. In 2021, the company realized an operating revenue of 5.84 billion yuan, an increase of 28.8% over the previous year; The net profit attributable to the parent company was 1.4 billion yuan, an increase of 2.4% over the previous year. Q4 company achieved a revenue of 2.01 billion yuan, a year-on-year increase of + 29.6%; The net profit attributable to the parent company was 390 million yuan, a year-on-year increase of – 17.8%; The net interest rate attributable to the parent company in a single quarter was 19.2%, down 9.1pcts year-on-year; Q4 performance is lower than expected, and the net interest rate is at a low level since 2020. The company has increased the investment in marketing expenses in the Chinese market to achieve a significant increase in market share.
Comments:
Q4 revenue growth exceeded expectations and is optimistic that the domestic and foreign sales revenue will maintain a rapid growth rate in 22 years. Throughout 2021, the company’s single quarter revenue growth hit the bottom in Q2 (Q2 was affected by the shutdown of Shenzhen Yan Tian Port Holdings Co.Ltd(000088) in Shenzhen) and rebounded quarter by quarter. Under the background of still tight global transportation capacity, Q4 revenue growth was nearly 30% higher than the market expectation, which was mainly due to the hot sales of new products such as G10 sweeping Siasun Robot&Automation Co.Ltd(300024) , U10 double floor washing machine and H7 wireless handheld vacuum cleaner launched by the company in September. According to the business consultant, the Gmv of stone brand Ali channel 21q3 / 21q4 was + 82% / + 164% year-on-year; According to ovicloud.com, the retail sales share of stone G10 mainstream e-commerce reached 13.3% in December 21, second only to Ecovacs Robotics Co.Ltd(603486) x1, ranking second among all best-selling models. Taking into account the rising price of main models (g104000 yuan vs t7splus2700 yuan), the domestic sales revenue is expected to maintain a high growth in 2022. Overseas, the company’s product line is becoming more and more abundant, and the recently launched high-end model s7maxv occupies the top of the price band. It is expected that the overseas business will continue to maintain considerable growth in 22 years under the background of the popularization of LDS products and the recovery of supply chain.
The net interest rate in a single quarter fell significantly year-on-year, and the marketing and R & D expenses increased. The net profit margin of 21q4 company decreased by 9 percentage points year-on-year, continuing the large year-on-year downward trend of 21q3. The reasons may include: 1) the high price of raw materials + the price reduction of old products, and the gross profit margin decreased significantly year-on-year; 2) More marketing expenses in China; 3) Increase investment in new product R & D and share based payment expenses. Looking forward to 2022, it is expected that the company will maintain the investment trend in marketing and R & D expenses, and the improvement of the external environment such as raw material prices will lead to the improvement of gross profit margin. Comprehensively, it is expected that the annual parent net profit margin will move slightly lower than 24.0% in 2021.
Profit forecast, valuation and rating: Beijing Roborock Technology Co.Ltd(688169) is a leading enterprise applying lidar technology and related algorithms to intelligent sweeping Siasun Robot&Automation Co.Ltd(300024) field on a large scale. With the support of strong R & D strength, the product matrix is constantly enriched, and the penetration of private brands promotes the growth of profit level. Considering the large decline of 21h2 net interest rate and the increasingly full competition in the sweeper / washer industry, the net profit of Beijing Roborock Technology Co.Ltd(688169) 202123 was reduced to 1.4 billion yuan, 1.79 billion yuan and 2.2 billion yuan (8.6% / 6.9% / 9.4% lower than the previous forecast respectively), and the current price corresponding to PE was 31, 24 and 20 times, maintaining the “overweight” rating of the company.
Risk tip: the expansion of new products is less than expected, overseas sales are weak, and the price of raw materials is up.
