\u3000\u30 Beijing Zznode Technologies Co.Ltd(003007) 29 Loctek Ergonomic Technology Corp(300729) )
Performance summary: the company released the annual report of 2021, and achieved an operating revenue of 2.87 billion yuan in 2021, with a year-on-year increase of 48%; The net profit attributable to the parent company was 180 million yuan, a year-on-year decrease of 14.9%; The net profit deducted from non parent company was 110 million yuan, a year-on-year decrease of 40.8%. Among them, single Q4 company achieved an operating revenue of 770 million yuan, a year-on-year increase of 6.9%; The net profit attributable to the parent company was 61.093 million yuan, a year-on-year increase of 9.8%. The annual revenue maintained a high growth, subject to the rise of raw material prices and sea freight, and the annual profitability was under pressure.
Gross profit margin is temporarily under pressure and cash flow is improved. In 2021, the company’s overall gross profit margin was 39.7%, with a year-on-year decrease of 7pp, mainly due to the higher price growth of raw materials such as steel. In 2021, the company’s ergonomics industry achieved a gross profit margin of 41.1% (- 5pp), of which the ergonomics workstation achieved a gross profit margin of 43.1% (- 5pp); The gross profit margin of ergonomic large screen bracket is 21.6% (- 11.9pp). In terms of expense rate, the overall rate of the company in 2021 was 34.8%, a year-on-year decrease of 0.2pp. The company’s sales expense ratio was 24%, with a year-on-year decrease of 0.2pp; The rate of administrative expenses was 3.8%, a year-on-year decrease of 0.9pp; The R & D expense ratio was 4.5%, with a year-on-year increase of 0.2pp. The company continued to increase R & D investment, and the R & D expense increased by 53.4% year-on-year; The financial expense ratio was 2.4%, with a year-on-year increase of 0.7pp, mainly due to the increase of interest expenses of overseas warehouse leasing liabilities and convertible bonds, as well as the increase of handling charges with the increase of income of overseas e-commerce independent stations. In addition, due to the disposal of small-scale overseas warehouses during the reporting period, the company obtained a disposal income of 33.97 million yuan of fixed assets. Overall, the company’s net interest rate was 6.4%, a year-on-year decrease of 4.8pp. In addition, the net cash flow from operating activities was 270 million yuan, a year-on-year increase of 22.6%, mainly due to the growth of revenue and abundant cash flow of the company.
The proportion of linear driven products has increased, and the product structure has been continuously optimized. In 2021, the company’s ergonomic workstation revenue was 2.16 billion yuan, with a year-on-year increase of 51.5%, realizing rapid growth. Among them, as the category of the company’s large single product strategy, the linear driven smart office lifting table product has a revenue of 1.64 billion yuan, a year-on-year increase of 72.6%, accounting for 57.3% of the total sales revenue, and the sales volume has reached 1.298 million sets, which is the main growth point of the revenue of ergonomic workstation products; The revenue of ergonomic large screen bracket was 230 million yuan, a year-on-year decrease of 1.8%. The income of non ergonomics industry was 280 million yuan, a year-on-year increase of 17.1%, of which the income of other self-produced products was 220 million yuan, a year-on-year increase of 7.7%; The revenue from purchased products was 60 million yuan, a year-on-year increase of 69.3%. The company adheres to the brand strategy, and the sales of independent brands account for 64.7%. The overseas brand “flexispot” of music and song has long occupied the first place in the sales of lifting tables on e-commerce platforms such as Amazon, home depot, Wal Mart, Lotte and Yahoo. The domestic “music and song” brand lifting tables account for 70% of the sales of lifting tables in the whole network, highlighting the brand advantage.
With the rapid development of cross-border e-commerce, the number of independent station buyers and average consumption amount increased rapidly. Due to the popularity of remote office, the frequency of offline consumption is reduced, and the scale of the company’s cross-border e-commerce revenue is growing rapidly. In 2021, the company’s cross-border e-commerce sales revenue was 1.42 billion yuan, a year-on-year increase of 38.8%. Among them, the revenue of independent stations, Amazon and other main direct channels increased rapidly, and the revenue of independent stations reached 530 million yuan, a year-on-year increase of 89.2%; Amazon achieved revenue of 840 million yuan, a year-on-year increase of 16.2%. In the future, the company will continue to invest in and develop the cross-border e-commerce model, maintain the company’s leading position in the industry under this business model, and ensure the effective digestion of new production capacity. In 2021, the number of independent station buyers reached 247000, with a year-on-year increase of 60.5%, about 39.6% of the number of Amazon platforms; The per capita consumption amount of independent stations is 2356 yuan, 54.9% higher than that of Amazon. The effect of drainage and increasing customer unit price of independent stations is significant.
The overseas warehouse layout is further expanded, and the cost advantage is expected to continue to appear. At the beginning of 2019, the company realized the strategic significance of overseas warehouse, began to systematically plan the public overseas warehouse project, and began to fully promote it in the first half of 2020. By the end of 2021, in addition to the overseas warehouses and rental warehouses purchased by itself in the core hub port area of the United States, Lego also has overseas warehouses in Germany, Japan and other places, with a total of 15 warehouses worldwide, with a delivered area of 260000 square meters, and 53000 square meters of warehouses in the East, the West and the United States are under construction and expansion. Among them, the storage area of the United States expanded from 90000 square meters at the end of 2020 to 240000 square meters, with an increase rate of 167%. At present, the company’s overseas warehouse investment attraction is smooth. With the continuous expansion of the scale of lege cross-border e-commerce public overseas warehouse innovation service complex project, the company’s bargaining power is expected to improve and its profitability is expected to improve.
Profit forecast and investment suggestions. It is estimated that the EPS from 2022 to 2024 will be 1.30 yuan, 1.94 yuan and 2.52 yuan respectively, and the corresponding PE will be 13 times, 9 times and 7 times respectively, maintaining the “hold” rating.
Risk tip: the risk of intensified Sino US trade friction, the risk that the progress of production expansion projects is less than expected, the risk of sharp fluctuations in raw material prices, and the risk of exchange rate fluctuations.
