Keeson Technology Corporation Limited(603610) ( Keeson Technology Corporation Limited(603610) )
According to the annual report released by the company, the revenue in 2021 was 2.967 billion yuan, a year-on-year increase of + 31.28%, of which Q1-Q4 achieved revenue of 6.53/6.75/8.51/789 billion yuan in a single quarter, a year-on-year increase of + 25.03% / + 42.2% / + 47.86% / + 14.64%; In 21 years, the net profit attributable to the parent company was 357 million yuan, a year-on-year increase of + 30.61%, of which the net profit attributable to the parent company in Q1-Q4 in a single quarter was 0.72/0.63/1.17/106 million yuan, a year-on-year increase of + 3.24% / + 6.89% / + 88.76% / + 27.13%.
The intelligent electric bed maintained high growth, and the cooperation with key customers was steady, consolidating the advantages of the North American market. In terms of categories, the company’s revenue from intelligent electric beds / mattresses / accessories and other products in 21 years was RMB 2.622/1.25/135 billion respectively, with a year-on-year increase of + 33.74% / + 3.99% / + 17.97% respectively. The core product electric beds maintained a high-speed growth. In terms of regions, the company’s overseas / domestic revenue in 21 years was 2.754127 billion yuan respectively, with a year-on-year increase of + 32.53% / + 9.33% respectively. Thanks to the high performance of the key customer tepur Silian, the company’s annual revenue in 21 reached a record high, and renewed the three-year contract with tepur international in March 21, which is conducive to maintaining the competitive advantage of the company in the North American market. In the past 21 years, the company’s sales to the top five customers accounted for 75.74%, of which the largest customer accounted for 49.66%.
Adopt diversified cooperation mode to accelerate the exploration of domestic market and strengthen the construction of independent brands. As the only supplier of smart electric beds for the 2022 Beijing Winter Olympic Games and winter Paralympic Games, the company has provided more than 6000 smart electric beds and 20 sleep experience warehouses for the Winter Olympic Village and venues, and has improved Chinese consumers’ awareness of electric bed products to a certain extent with the influence of the winter Olympic Games. At the same time, the company has carried out multi-channel layout, and the products are sold in Huawei mall and made in Beijing and Tokyo. In November 21, the company’s “Shuford” brand experience store was officially opened in Beijing SKP to provide consumers with offline interactive deep sleep experience and establish the brand image. In addition, the company cooperates with hotels across fields to provide opportunities to experience the functions of smart electric beds and better reach end consumers by installing smart electric beds in high-end hotels.
Smart factories improve manufacturing efficiency, global capacity layout and optimize the supply chain. The company’s 4 million smart electric beds project (phase I) has been officially put into operation in September 2020, and the degree of automation and digitization has been significantly improved. At the beginning of 2022, the second phase of the project was started, with a total investment of 1.05 billion yuan. After the project is completed, it will form an annual production capacity of 1 million sets of sensors, a service capacity of 24000 electric bed data centers and complete the construction of R & D centers. In terms of overseas production capacity, factories in Vietnam and Mexico were put into operation successively in 2019 and 2021. In order to further serve the North American market, shorten the supply cycle and enhance the ability to resist trade policy risks, the company plans to accelerate the Mexican sponge foaming project and spring mattress project and expand product categories while promoting the capacity climbing of Mexican factories.
The price increase was successfully implemented, which promoted the recovery of profit margin and demonstrated the bargaining power of the company. In 2021, the company’s gross profit margin was 35.47%, with a year-on-year rate of -2.54pct, of which the gross profit margin of Q1-Q4 in a single quarter was 35.23% / 33.09% / 34.94% / 38.28% respectively, with a year-on-year rate of -4.09 / – 3.86 / – 6.07 / + 3.05pct respectively. Affected by the rise in the price of raw materials and the increase in the depreciation of the 4 million smart electric bed project (phase I), the gross profit margin of the company decreased year-on-year in the first three quarters. The price increase of the company has been gradually implemented since July 1, 2021, which promoted the month on month recovery of the gross profit margin of Q3 and Q4 in a single quarter, and the gross profit rate of Q4 has improved significantly. We believe that the smooth implementation of the price increase reflects the bargaining power of the company under the background that the industry is generally faced with adverse factors such as raw materials, exchange rate and shipping. The net interest rate attributable to the parent company in 21 years was 12.04%, with a year-on-year rate of -0.06pct, which was basically stable. The net interest rate attributable to the parent company in Q1-Q4 in a single quarter was 11.01% / 9.34% / 13.70% / 13.40% respectively, with a year-on-year rate of -2.32 / – 3.09 / + 2.97 / + 1.32pct respectively. The overall profitability rebounded steadily. The rates of sales / management / R & D / financial expenses in 21 years were 9.09% / 7.45% / 4.77% / 1.16% respectively, with a year-on-year increase of -0.53 / – 0.58 / – 0.46 / – 1.06pct respectively.
Profit forecast and Valuation: we are optimistic about the increase in the penetration rate of electric beds under the trend of consumption upgrading. As the leader of subdivided tracks, the company has stable cooperation with major customers and significant advantages in the North American market. We expect the net profit attributable to the parent company in 22-24 years to be RMB 427 / 507 / 598 million, with a year-on-year increase of + 19.61% / + 18.58% / + 18.11% respectively, corresponding to pe11.5% 7x / 9.9x / 8.3x, maintaining the “overweight” rating.
Risk tip: China’s market expansion is less than expected; Price fluctuation of raw materials; Exchange rate fluctuations; The concentration of overseas customers is high.
