Keeson Technology Corporation Limited(603610) ( Keeson Technology Corporation Limited(603610) )
Event: on April 17, Keeson Technology Corporation Limited(603610) released the 2021 annual report. In 2021, the company achieved an operating revenue of 2.967 billion yuan, a year-on-year increase of 31.28%; The net profit attributable to the parent company was 357 million yuan, a year-on-year increase of 30.61%; The net profit attributable to the parent company after deduction was 317 million yuan, a year-on-year increase of 35.99%. In 2021q4, the company achieved an operating revenue of 789 million yuan, a year-on-year increase of 14.64%; The net profit attributable to the parent company was 106 million yuan, a year-on-year increase of 27.13%; The net profit attributable to the parent company after deduction was 74 million yuan, with a year-on-year increase of 14.26%.
The cooperation with key customers is steady, and the North American market of intelligent electric bed maintains rapid growth
In 2021, the company’s revenues from smart electric beds, mattresses, accessories and others were RMB 2622 million, 125 million and 135 million respectively, with a year-on-year increase of 33.74%, 3.99% and 17.97% respectively. Smart electric beds maintained a high-speed growth. In 2021, the company’s overseas business realized a revenue of 2.754 billion yuan, a year-on-year increase of 32.53%, accounting for 95.58%. The company is the main supplier of smart electric beds for the two North American mattress giants of tepulsili and Shuda Simmons. The high growth of overseas business in 2021 is mainly due to tepulsili’s accelerated volume (performance growth rate of more than 70%) and the acquisition of dreamuk, a well-known British mattress brand, which provides an opportunity for the company to enter the British market. The company has a stable cooperative relationship with key customers, and renewed the 3-year electric bed product manufacturing and supply agreement with tepur international. At the same time, the company actively promoted cross-border cooperation and reached a global strategic cooperation agreement with Garmin, the world’s leading supplier of smart watches, so as to realize the promotion of intelligent system products in the field of data application, which is expected to form a new growth point.
It is solely for the Winter Olympics to improve the brand awareness of smart beds and develop a new model of diversified cooperation into the Chinese market
In 2021, the company’s domestic business realized a revenue of 127 million yuan, a year-on-year increase of 9.33%, accounting for 4.42%. 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 various venues with the core of “smart sleep, high-tech Winter Olympic Games and China smart manufacturing”, so as to deeply build the brand image. In terms of sub channels, 1) in terms of online channels, the company actively carried out multi platform layout, linked Huawei hilink ecosystem, merged into Beijing Tokyo land reclamation and continued to launch new products. 2) In terms of bulk channels, the company’s science and technology enables the hotel, real estate property and elderly care industries: new business forms of cross field cooperative hotels, and intelligent electric beds are laid in major high-end hotels across the country; Join hands with Greentown to provide health management services of smart electric beds for Greentown users; Through the promotion of smart bed products in elderly care institutions and medical units, the first “nursing care” model helps home-based elderly care. In September 21, it was approved as the “2021 new information consumption demonstration project” of the Ministry of industry and information technology, and the future volume can be expected.
The smooth landing of price increase boosted the month on month recovery of profitability, and the acceleration of asset turnover drove the improvement of roe
In 21 years, the company’s comprehensive gross profit margin fell 2.54pct to 35.47% year-on-year, mainly due to the rising cost of raw materials and the high freight caused by the global shortage of containers. Since July 21, the price increase of the company has been gradually implemented, and the gross profit margin of 21q3 and 21q4 has rebounded month on month. During the 21 years, the expense rate of the company was 22.47%, down 2.64pct year-on-year, and the expense rates of sales / management / R & D / finance were 9.09% / 7.45% / 4.77% / 1.16% respectively, down -0.53 / – 0.58 / – 0.46 / – 1.06pct year-on-year. The effective control of expenses alleviated the downward pressure of gross profit margin to a certain extent, and the net profit margin decreased slightly from 0.06pct to 12.04% year-on-year. The weighted average roe increased by 2.16pct to 11.62% year-on-year, mainly due to the increase of asset turnover rate by 0.09 to 0.73 times year-on-year.
Investment suggestion: in the medium and long term, under the trend of consumption upgrading, the penetration rate of global intelligent electric beds is expected to continue to increase Keeson Technology Corporation Limited(603610) as the leader of smart electric beds in China, its product technology R & D and innovation ability leads the industry. While the cooperation with overseas major customers is stable, it actively explores the Chinese market. With the company’s 4 million smart electric beds project (phase II) in Vietnam and Mexico and the headquarters put into operation one after another, its performance is expected to grow steadily in the future. We estimate that the operating revenue of Keeson Technology Corporation Limited(603610) 20222024 will be RMB 3.529 billion, RMB 4.237 billion and RMB 4.944 billion, with a year-on-year increase of 18.95%, 20.06% and 16.69%; The net profit attributable to the parent company was 421 million yuan, 504 million yuan and 608 million yuan, with a year-on-year increase of 17.88%, 19.73% and 20.64%. The corresponding PE was 11.9x, 10.0x and 8.3x, and the investment rating of Buy-A was given.
Risk tip: the competition in the electric bed industry intensifies the risk, the expansion of domestic sales model is less than expected, and the international trade policy risk.
