\u3000\u3 Bohai Water Industry Co.Ltd(000605) 299 Shuhua Sports Co.Ltd(605299) )
The company issued the 2021 annual report. In 2021, the operating revenue was 1.562 billion yuan, a year-on-year increase of 5.25%; The net profit attributable to the parent company was 116 million yuan, a year-on-year decrease of 15.45%. Among them, the operating revenue of 2021q4 was 473 million yuan, a year-on-year decrease of 8.28%; The net profit attributable to the parent company was 38 million yuan, a year-on-year decrease of 39.58%.
Revenue side: the company achieved an operating revenue of 1.562 billion yuan, with a year-on-year increase of 5.25%, mainly due to the slowdown of the impact of the epidemic in 2021 and the increase in the demand of display shelf end customers. In terms of products, display products / indoor fitness equipment / indoor fitness path / others achieved an operating revenue of 3.10/9.71/242/0.40 billion yuan respectively, with a year-on-year increase of 35.94% / 0.85% / – 9.10% / 44.46% respectively, accounting for 19.80% / 62.15% / 15.51% / 2.55% of the operating revenue respectively.
Gross profit margin: the company’s gross profit margin in 2021 was 28.2%, a year-on-year decrease of 2.20pct, mainly due to the rise in the price of raw materials. Among them, the gross profit margin of display products was 29.93%, a year-on-year decrease of 1.45pct, mainly due to the increase of purchased finished products due to the increase of sales volume and the change of customer product structure; The gross profit margin of indoor fitness equipment was 26.99%, a year-on-year decrease of 3.48 PCT; The gross profit margin of outdoor fitness path was 26.4%, with a year-on-year increase of 0.63 PCT; The gross profit margin of other businesses was 55.35%, a year-on-year decrease of 9.06 PCT.
Expense side: the expense rate of the company during 2021 was 17.36%, with a year-on-year increase of 0.2pct. Among them, the sales expense ratio and management expense ratio increased slightly, and the financial expense ratio decreased by 0.71 PCT year-on-year, mainly due to the abundant funds of the company in 2021, early repayment of loans and reduction of loan scale. Profit side: in 2021, the company realized a net profit attributable to the parent company of 116 million yuan, a year-on-year decrease of 15.45%, mainly due to the rise in the price of raw materials and the year-on-year increase in sales expenses; The net interest rate attributable to the parent company was 7.41%, a year-on-year decrease of 1.82 PCT. In terms of quarter, the net profit attributable to the parent company in Q3 / Q4 in 2021 decreased by 2.92% / 39.58% respectively year-on-year, mainly due to the rise in the price of raw materials such as steel.
Product side: actively create a full scene solution, and the product is intelligently driven to meet the needs of the whole crowd. The company has six product lines and is committed to realizing full scene sports solutions to meet the needs of the whole population. The follow-up company will continue to promote the process of product intelligence, and continue to carry out product iteration and product innovation on this basis.
Channel side: with the continuous expansion of distribution channels and the injection of new vitality into online channels, to G channels are expected to drive growth rapidly. Dealers have remained stable, and the company has more than 230 dealers; To strengthen online tiktok, new sales mode of jitter is added. Actively carry out to g business, obtain government orders through bidding procurement procedures and competitive negotiation of local sports bureaus and other government units, and mainly sell outdoor path products and indoor fitness equipment products.
Investment suggestion: under the background of sports policy stimulation and industry demand increment in the future, cultivating independent brands, product R & D and innovation, and the continuous and large amount of g-end resources will help the company further improve its market share. We estimate that the net profit attributable to the parent company in 22-23 years is 210 / 240 million yuan, and the corresponding PE is 25X / 21x respectively.
Risk warning: the risk of high concentration of customers in exhibition business, high risk of accounts receivable, and income fluctuation risk of outdoor route business
