\u3000\u3 Guocheng Mining Co.Ltd(000688) 169 Beijing Roborock Technology Co.Ltd(688169) )
Core conclusion
Event: in 2021, the company achieved a revenue of 5.837 billion yuan, a year-on-year increase of + 28.84%, and a net profit attributable to the parent company of 1.402 billion yuan, a year-on-year increase of + 2.41%; In 2021q4, the revenue was 2.010 billion yuan, a year-on-year increase of + 29.62%, and the net profit attributable to the parent company was 386 million yuan, a year-on-year increase of – 17.80%; In 2022q1, the revenue was 1.36 billion yuan, a year-on-year increase of + 22.30%, and the net profit attributable to the parent company was 343 million yuan, a year-on-year increase of + 8.76%.
Driven by new self-cleaning products, domestic sales of 21q4 and 22q1 are outstanding. The company’s 21q4-22q1 revenue growth is mainly driven by the domestic sales business. At the end of August, the company launched a new self-cleaning product G10 and strengthened the marketing of the product, with remarkable results. According to ovicloud, the online sales market share of 21q4 company was 17.4%, and 22q1 further increased to 18.9%, with a year-on-year ratio of + 8.4pct, jumping to the second in the industry; Overseas, the company’s overseas business growth slowed down due to tight transportation capacity, a slight drop in overseas demand and other factors. Recently, the company launched an upgraded version of self-cleaning product g10s in China, which is priced more cost-effective on the basis of comprehensive functions, and the domestic market share is expected to increase steadily; In terms of export, the company has deployed a variety of self dust collection products overseas to solve the pain points of overseas consumers. With LDS navigation products, the company has successfully launched its brand in the overseas market and will maintain steady growth in 22 years driven by new products.
Profitability rebounded significantly in the first quarter. Due to the rise in the price of raw materials and the adjustment of accounting standards, the company’s gross profit margin fell, with 22q1 accounting for 47.5%, a year-on-year increase of – 2.2pct and a month on month increase of + 2.8pct. Due to the optimization of product structure, the gross profit margin in Q1 improved month on month. On the expense side, the sales / R & D expense ratio of 22q1 company was 13.4% / 8.6%, with a year-on-year increase of + 3.6pct / – 0.03pct. The off-season led to a significant decrease in Q1 sales expense investment month on month, and the R & D expense investment was relatively stable. Overall, the net interest rate of 22q1 was 25.2%, with a year-on-year increase of – 3.1pct. However, compared with Q4 + 6.0pct, driven by the optimization of product structure and the reduction of fees, the profitability of the company was reversed. In 2022, the company launched high-end new products both at home and abroad. With the further increase of the proportion of high-end products and the gradual easing of the pressure of shipping and exchange rate, the company’s profit is expected to increase steadily.
Investment suggestion: the company’s domestic sales performance is bright, its export sales remain stable, and its profits are reversed under difficulties. It is estimated that the net profit attributable to the parent company from 2022 to 2024 will be RMB 1.79522952877 billion, maintaining the “buy” rating.
Risk tip: international shipping is tight, raw material supply risks, and market competition intensifies.
