\u3000\u30 Xuchang Ketop Testing Research Institute Co.Ltd(003008) 66 Anker Innovations Technology Co.Ltd(300866) )
Key investment points
Event: on the evening of April 11, 2022, Anker Innovations Technology Co.Ltd(300866) released the annual report of 2021. The company achieved an annual revenue of 12.574 billion yuan, a year-on-year increase of + 34.45%; The net profit attributable to the parent company was 982 million yuan, a year-on-year increase of + 14.70%; After deducting the profit and loss of entrusting others to invest or manage assets and government subsidies, the company realized the deduction of non net profit of 708 million yuan, a year-on-year increase of – 2.69%. The net profit attributable to the parent company in 2021 exceeded our expectations.
Affected by the rising prices of raw materials and shipping, the company’s profit margin is under pressure: in 2021, Anker Innovations Technology Co.Ltd(300866) gross profit margin / net sales profit margin were 35.72% / 8.15% respectively, with a year-on-year increase of -3.55pct / – 1.42pct. The decline of the company’s gross profit margin is mainly due to the rise in the price of raw materials and the increase in shipping prices. In 2021, the company’s procurement cost rate was 50.9%, with a year-on-year increase of + 2.2pct; The transportation cost rate was 13.3%, with a year-on-year increase of + 1.4pct. If the prices of raw materials and shipping return to the normal level, the profit margin of the company may have great room for improvement.
Hedging was carried out to reduce exchange losses, and the company’s expense rate improved: in 2021, the company’s sales / management / R & D expense rate was 19.4% / 2.98% / 6.19%, with a year-on-year rate of -0.01 / – 0.05 / + 0.12pct, which remained basically stable; The financial expense ratio was 0.36%, with a year-on-year increase of -0.39pct. The exchange loss in 2020 led to a higher financial expense rate. In 2021, the company launched foreign exchange hedging and the financial expense rate improved.
Products continue to iterate, and all major categories go hand in hand: in 2021 Anker Innovations Technology Co.Ltd(300866) the revenue of charging / intelligent innovation / wireless audio products reached 5.552/4.04/2.852 billion yuan, a year-on-year increase of + 34.0% / 34.1% / 34.4%. During the year, the company launched a series of powerful charging heads, X8 sweeping Siasun Robot&Automation Co.Ltd(300024) , soundcore liberty 3pro all wireless headphones and other heavy new products. Driven by these high-quality products, all product lines showed a growth trend of going hand in hand.
The sales of all major regions have increased simultaneously, and the offline share has increased: the main market of Anker Innovations Technology Co.Ltd(300866) is in North America, with North American revenue accounting for 50.4% in 2021, followed by Europe and Japan. In 2021, the company’s sales in North America, Europe, Japan and the Middle East increased by more than 26% year-on-year; In 2021, the company began to exert its strength in the Chinese mainland market, and realized its annual income of 420 million yuan / +194.5%. In 2021, the company’s offline channels grew rapidly, with a year-on-year growth rate of 53.3%. At present, the company has laid out well-known chain channels such as Wal Mart, best buy in North America and 7-11 in Japan. Offline channels show the characteristics of low gross profit and low cost. The increase of offline proportion will lower the gross profit margin to a certain extent, but it has little impact on the net profit margin of sales.
Profit forecast and investment rating: the company is a leading cross-border brand. Based on China’s leading commodity supply chain and the leading Internet operation gene of Chinese enterprises, we are optimistic about the long-term development of cross-border brands. Considering the price of raw materials and sea transportation carefully, we lowered the forecast of net profit attributable to parent company from 1.37/1.72 billion yuan to 1.26/1.66 billion yuan in 20222023, and predicted that the net profit attributable to parent company in 2024 would be 1.95 billion yuan, with a year-on-year growth rate of 28% / 32% / 18% from 20222024, and the corresponding P / E on April 12 was 20 / 15 / 13 times, maintaining the “buy” rating.
Risk tips: shipping freight and raw material prices rise, new products are less than expected, competition intensifies, etc
