\u3000\u30 Xuchang Ketop Testing Research Institute Co.Ltd(003008) 66 Anker Innovations Technology Co.Ltd(300866) )
Event:
On April 11, 2022, Anker Innovations Technology Co.Ltd(300866) released the annual report of 2021. In 2021, the company realized an operating revenue of 12.574 billion yuan (+ 34.45%); The net profit attributable to the parent company was 982 million yuan (+ 14.70%). In 2021q4, the company realized an operating revenue of 4.149 billion yuan (+ 24.44%), and a net profit attributable to the parent company of 336 million yuan (+ 4.03%). Based on the total share capital of 406 million shares before equity distribution, the company plans to distribute a cash dividend of 8 yuan (including tax) to all shareholders for every 10 shares, with a total of 325 million yuan (including tax), accounting for 33.12% of the net profit attributable to the parent company in 2021.
Key investment points:
In 2021, the annual revenue increased rapidly, and the growth rate of domestic sales revenue was bright. 1) By category: the three categories of the company achieved good growth in 2021. Among them, the revenue of charging products was 5.552 billion yuan (+ 34.00%), the revenue of intelligent innovative products was 4.104 billion yuan (+ 34.13%), and the revenue of wireless audio products was 2.852 billion yuan, a year-on-year increase (+ 34.44%). 2) In terms of regions, the revenue of the company in all regions increased rapidly, and the growth rate of domestic revenue was bright. In 2021, the company achieved 63.41/25.42/17.32/5.62/4.12/9.78 billion yuan in North America / Europe / Japan / Middle East / Chinese Mainland / other regions, up by 26.33%/39.44%/26.17%/28.46%/194.47%/75.32% respectively. 3) From the perspective of different channels: offline revenue is growing rapidly. In 2021, the company’s online and offline revenue were 8.00/4.575 billion yuan respectively, with a year-on-year increase of 25.60% / 53.33% respectively.
The rise of shipping costs and raw material prices disturbs the company’s profit margin and puts pressure on its profitability. 1) Gross profit margin: in 2021, the company’s gross profit margin was 35.72%, with a year-on-year decrease of 3.55 PCT under the same caliber, or due to the increase of freight caused by the rise of raw material prices and the shortage of shipping capacity; 2) Net profit margin: in 2021, the company’s net profit margin was 8.48% (-1.42pct), and the decline of net profit margin was less than the gross profit margin, mainly because the company reasonably controlled expenses and carried out foreign exchange hedging. In 2021, the company’s sales / management / R & D / financial expense rates were 19.44%, 2.98%, 6.19% and 0.36% respectively, with a year-on-year ratio of -0.01 / – 0.05 / + 0.12 / – 0.39pct under the same caliber.
The product matrix has been continuously enriched, and the multi wheel drive company has grown healthily. In 2021, the company’s three categories of product matrix continued to enrich, and the product strength led the industry. 1) Continue to launch a variety of high-quality charging new products with leading technology and strong adaptability, such as Anker nanoii charger equipped with the second-generation gallium nitride technology, so as to help consolidate the leading position of the company’s digital charging brand; 2) Continue to expand new categories of intelligent innovative products, including eufyclean’s new sweep Siasun Robot&Automation Co.Ltd(300024) x8 and high-end handheld vacuum cleaner H30 series; Eufysecurity launched a number of innovative products such as smart door locks. 3) The company’s wireless audio products have won the recognition of consumers at home and abroad. The headset soundcorelibertyair2pro launched in 2021h1 became the top three in the sales of tmall platform headphones in China in the first week. After the wireless Bluetooth headset soundcoreliberty3pro launched in 2021h2 was launched, the peak Google search index of the company’s “soundcore” brand increased by 200% compared with the average.
We will continue to promote global market development and actively expand emerging economic markets. 1) Markets in developed countries: the company has deeply cultivated and consolidated mature markets. While improving brand awareness and reputation, it has continued to strengthen the expansion of online Amazon, local large supermarkets, stores and other offline channels. 2) emerging markets: the company focuses on China, Southeast Asia and Latin America regional markets, and in-depth local local market channel construction. From the Chinese mainland’s 194.47% revenue growth rate in 2021, the development of emerging markets has yielded some results. By the end of 2021, the company’s business has covered more than 146 countries and regions, with more than 100 million users worldwide.
Accelerate the construction of offline channels and build an online + offline Omni channel network. With the help of the good reputation and brand potential established in the field of online e-commerce, the company quickly develops the offline market and forms an “online” + “offline” omni-channel three-dimensional network. Globally, the company has settled in Wal Mart, best buy and other well-known chain stores in North America, as well as the Japanese retail 7-11 convenience store group, and has made some progress in offline expansion in Europe, Australia, Southeast Asia, South America and other countries and regions.
The company actively expanded its business boundary, enriched its product matrix, gradually improved its global market system, covered it for the first time, and gave it a “buy” rating. The company has a rich product matrix. While consolidating its leading position in the field of consumer electronics, it has earlier laid out the field of intelligent hardware with its leading R & D strength. With the global market development, the company is expected to usher in more new growth opportunities. First coverage and “buy” rating. We expect that the net profit attributable to the parent company from 2022 to 2024 will be RMB 1.313/16.86/1.896 billion, corresponding to EPS of RMB 3.23/4.15/4.66, and the current share price corresponding to PE of 18.59/14.48/12.87 times.
Risk tips: intensified market competition, price fluctuation of raw materials, exchange rate fluctuation risk, tight shipping capacity, repeated covid-19 epidemic, etc.
