Keeson Technology Corporation Limited(603610) ( Keeson Technology Corporation Limited(603610) )
Event:
The company released the annual report of 2021: the annual revenue of 2021 was 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 non deduction was 317 million yuan, a year-on-year increase of 35.99%; The basic earnings per share is 1.28 yuan. Guoyuan view:
The impact of rising transmission costs caused by price increase, and the gross profit margin of Q4 was repaired month on month
The gross profit margin of the company decreased significantly in the first half of the year due to the rise of raw materials and shipping costs. In July 2021, the company negotiated with major customers to raise the price, and the gross profit margin of Q4 was restored to 38.28%, with a year-on-year increase of + 3.06pct and a month on month increase of + 3.34pct; The company’s gross profit margin for the whole year of 21 years reached 35.47%, with a year-on-year increase of -2.54pct. Quarterly, the company’s Q1-Q4 revenue was 6.53/6.75/8.51/789 billion yuan respectively, with a year-on-year increase of + 25.03% / + 42.20% / + 47.86% / + 14.64%; The net profit attributable to the parent company was RMB 0.72/0.63/1.17/106 million respectively, with a year-on-year increase of + 3.24% / 6.89% / 88.76% / 27.13%; The gross profit margin is 35.23% / 33.09/34.94/38.28% and the net profit margin is 10.88% / 9.21% / 13.66% / 13.29% respectively. If the cost side pressure is relieved in 2022, the profitability of the company is expected to be further improved.
Steady progress was made in capacity expansion, and the global layout continued to increase
In terms of production capacity, the company’s headquarters project with an annual output of 4 million smart electric beds (phase I) has been put into use in 2020. The output of smart electric beds in 2021 was 142.97, a year-on-year increase of + 30.65%. In 2022, the company actively promoted the production capacity of Mexican factories and accelerated the production of Mexican sponge project and spring mattress project. In addition, the planned R & D center and production supporting plant project of 4 million smart electric bed headquarters project (phase II) will be started in 2022, with a total investment of 1.05 billion yuan. It is expected to form an annual production capacity of 1 million sets of sensors Data center service capacity of 24000 electric beds. In terms of market development, in China, as the only supplier of intelligent electric beds for the 2022 Beijing Winter Olympic Games and winter Paralympic Games, the company has provided more than 6000 intelligent electric beds and 20 sleep experience warehouses for the Winter Olympic Village and venues, which has won the praise of users; In foreign countries, the company is the main supplier of smart electric beds for the two North American mattress giants of tapelslian and Shuda Simmons, and reached a global strategic cooperation agreement with Garmin in 2021. The cooperative digital health solution is expected to be promoted and sold all over the world in 2022. The layout of the company’s global production base is accelerated, the market demand is developed in an orderly manner, and it is expected to maintain stable growth in the future.
“Product + service” two wheel drive, and the profit model is expected to be upgraded
The company attaches importance to R & D investment. In 2021, R & D expenditure was 141 million yuan, a year-on-year increase of + 19.49%, accounting for 4.77% of revenue. In August 2021, Keeson Technology Corporation Limited(603610) testing center obtained the laboratory accreditation certificate issued by CNAs, which fully proves that the testing center of the company has the testing ability of mutual recognition with the international community within the scope of accreditation. In addition, the company is upgrading from “selling products” to “selling services” with stronger stickiness and profitability. By providing SaaS like sleep health service management, combined with the advantages of the company in the field of big data, it will significantly improve user stickiness and further improve barriers.
Investment advice and profit forecast
As the leader of China’s intelligent electric bed, the company has strong advantages in scale and R & D technology. At present, there is still much room to improve the penetration rate of overseas market. The introduction of Chinese market and consumer education are carried out steadily. The company is expected to benefit from the double improvement of penetration rate and market share in the future. We expect that the company’s revenue in 22-24 years will be RMB 3.760/47.13/5.496 billion respectively, the net profit attributable to the parent company will be RMB 473574/688 million, the EPS will be RMB 1.69/2.05/2.46/share, and the corresponding PE will be 10.54/8.69/7.25 times, maintaining the “buy” rating.
Risk tips
Price fluctuation of raw materials; Too many downstream customers; Industry competition intensifies.
