\u3000\u30 Beijing Zznode Technologies Co.Ltd(003007) 29 Loctek Ergonomic Technology Corp(300729) )
Event:
The company released the annual report of 2021: the annual revenue of 2021 was 2.871 billion yuan, a year-on-year increase of 47.95%; The net profit attributable to the parent company was 185 million yuan, a year-on-year decrease of 14.93%; The net profit deducted from non parent company was 109 million yuan, a year-on-year decrease of 40.81%; The basic earnings per share is 0.85 yuan.
Guoyuan view:
The penetration rate of linear driven products continued to increase, and the trend of high income growth continued
With the marginal increase of market penetration of linear driven products, the company's own strong brand power, product power and layout advantages of diversified channels are superimposed, and the company's revenue maintains rapid growth; However, due to the high sea freight and the rising price of raw materials, the profit side is under pressure. In 2021, the company achieved a revenue of 2.871 billion yuan (YoY + 47.95%) and a net profit attributable to the parent company of 185 million yuan (yoy-14.93%). Quarter by quarter, the company's q1-4 achieved revenue of RMB 659 / 7.38 / 7.03 / 771 million respectively, with a year-on-year increase of 181.98% / 84.78% / 19.97% / 6.88%; The net profit attributable to the parent company was 32 / 0.52/0.40/0.61 billion yuan respectively, with a year-on-year increase of + 128.17% / - 3.89% / - 57.58% / + 9.80%. In terms of products, the overall sales volume of products in 2021 was 7.8013 million pieces / set (YoY + 14.55%), and the average unit price was 368.05 yuan / piece (YoY + 29.16%), realizing the simultaneous increase of volume and price; Among them, the ergonomic workstation / ergonomic large screen bracket category achieved revenue of RMB 2.163228 billion respectively, with a year-on-year increase of + 51.52% / - 1.84%; In terms of channel construction, the company has formed a sales model of Wuxi Online Offline Communication Information Technology Co.Ltd(300959) diversified and coordinated development at home and abroad, of which online sales accounted for 55.90%, with a year-on-year increase of 39.30%; In terms of cross-border e-commerce, the company's independent station revenue has achieved rapid growth, with sales increasing by 89.19% year-on-year. In addition, the company is also actively building overseas warehouse projects. By the end of 2021, the company has completed the layout of 15 overseas warehouses around the world, with a delivered area of 260000 square meters.
High sea freight and raw material prices affect profitability, and high R & D investment creates competitive barriers
In 2021, sea freight and raw material prices remained high, resulting in increased costs, which had a great impact on profitability. The annual comprehensive gross profit margin decreased by 7.03 PCTs to 39.72%, and the comprehensive net profit margin decreased by 4.74 PCTs to 6.42%. Quarterly, q1-4 gross profit margins were 41.87% / 38.32% / 36.60% / 42.05% respectively, with a year-on-year decrease of 7.14 PCTs / 6.55 PCTs / 13.00 PCTs / 2.67 PCTs. In terms of expenses during the period, the sales expense ratio / management expense ratio continued to optimize, with a year-on-year decrease of 0.13pcts/0.93pcts to 24.04% / 3.81%, and the financial expense ratio increased by 0.66pcts to 2.38%. In terms of R & D investment, the company continued to increase R & D innovation and further enhance the added value of products. In 2021, the company's R & D expenditure was 130 million yuan, a year-on-year increase of 53.40%, and the R & D expenditure rate increased by 0.16pcts to 4.52%.
The layout of overseas warehouses has been smoothly promoted + the proportion of independent stations has been increased, and the profitability is expected to be repaired under cost reduction and efficiency increase
The company adopts the mode of "small warehouse and large warehouse" to promote the development of overseas public warehouse projects, strengthen the resource allocation in the core location, and seek cost reduction and efficiency while helping small and medium-sized enterprises go to sea; In addition, the company continued to strengthen the channel construction of independent stations, and the revenue of cross-border e-commerce increased steadily. We believe that with the stabilization and correction of sea freight and raw material prices in the future and the continuous improvement of added value of superimposed products, the profitability of the company is expected to be marginal repaired.
Investment advice and profit forecast
The company is a leader in the ergonomics industry. The penetration rate of its products continues to increase and is expected to benefit from the development dividend of the industry. With the superposition of its strong brand strength, product strength and diversified channel layout, as well as the release of the performance of overseas warehouse projects in the future, the medium and long-term growth potential of the company will not decrease; We adjusted the profit forecast. It is expected that the company will achieve revenue of RMB 3.948/53.31/6.878 billion, net profit attributable to the parent company of RMB 258362/473 million, EPS of RMB 1.17/1.64/2.14, corresponding to PE of 14.37/10.25/7.84 times from 2022 to 2024, maintaining the "buy" rating.
Risk tips
Sea freight and raw material prices exceeded expectations; The sales volume of new products is lower than expected; Exchange rate fluctuations exceeded expectations.
