\u3000\u3 Guocheng Mining Co.Ltd(000688) 169 Beijing Roborock Technology Co.Ltd(688169) )
Event: Beijing Roborock Technology Co.Ltd(688169) disclosed the annual report of 2021 and the first quarterly report of 2022. In 2021, the annual revenue was 5.837 billion yuan, a year-on-year increase of + 28.84%; The net profit attributable to the parent company was 1.402 billion yuan, a year-on-year increase of 19.81%; The non net profit deducted was RMB 1.190 billion, a year-on-year increase of – 1.47%. In 2022q1, the revenue was 1.36 billion yuan, a year-on-year increase of + 22.30%; The net profit attributable to the parent company was 343 million yuan, a year-on-year increase of + 8.76%; The non net profit deducted was 301 million yuan, a year-on-year increase of + 7.06%.
Comments:
Revenue maintained rapid growth, and the domestic sales share was significantly increased driven by new products. In 2021, the company’s revenue is expected to grow by 29%, China’s revenue is expected to grow by 20%, and overseas revenue is expected to grow by 30%. Driven by the rapid and large volume of self-cleaning product G1, Chinese independent brands continue to increase, and the growth rate of Chinese independent brands is expected to be 70% +. In terms of categories, the company’s 21-year revenue from floor sweepers was 5.6 billion yuan, a year-on-year increase of 27%, and the revenue from handheld products was 230 million yuan, a year-on-year increase of 102%. 2022q1 company continues its rapid growth and is expected to more than double the growth of the Chinese market. Due to the high base in the same period last year and the war between Russia and Ukraine, its export sales are expected to increase in single digits in the first quarter. With the release of Q2 overseas new products and the relief of shipping pressure, it is optimistic that the company’s export growth rate will improve quarter by quarter.
The gross profit margin continued to be under pressure, and the net profit margin improved significantly month on month. In 2021, the company’s gross profit margin was -3.22pct to 24.93% year-on-year, and its net profit margin was -6.20pct to 24.03% year-on-year, of which Q4 gross profit margin was -6.72pct year-on-year and net profit margin was -11.09pct year-on-year. Excluding the adjustment of accounting standards, the gross profit margin was -1.8pct year-on-year, which was mainly affected by the rise of raw material costs, product structure and exchange rate fluctuations. In terms of expense rate, as the company is currently in the stage of overseas and internal channel expansion, the marketing investment is increased, and the annual sales expense rate is + 2.39 PCT; Continue to increase investment in R & D, and the R & D expense rate is + 1.75pct; The rate of administrative expenses and financial expenses remained stable. Under the cost pressure, the gross profit margin of 2022q1 company increased from -2.15pct to 49.49% year-on-year, with a chain comparison of + 2.75pct. Sales expenses were + 3.62pct year-on-year and -5.43pct month on month. The net interest rate increased from -3.14pct to 25.22% year-on-year, but it improved significantly month on month, up 6pct compared with 21q4.
Investment suggestion: it is estimated that the company’s revenue from 2022 to 2024 will be 8.016 billion yuan, 10.392 billion yuan and 13.506 billion yuan respectively, with a year-on-year increase of 37.3%, 29.6% and 30.0%; The net profit attributable to the parent company was 1.916 billion yuan, 2.569 billion yuan and 3.373 billion yuan respectively, with a year-on-year increase of 36.6%, 34.1% and 31.3%. At present, the stock price corresponds to PE 20x, 15x and 11 times. Considering that the penetration of the floor sweeper industry has a large space to improve, domestic leading companies have global competitive advantages in product strength, supply chain and iterative innovation speed. With the increase of marketing efforts and the acceleration of channel expansion, they are optimistic that the company will continue to increase its share in the global market and fully enjoy the dividends of the rapid growth of the industry. Maintain a “recommended” rating.
Risk warning: overseas market expansion is less than expected; Tight shipping capacity; Deterioration of industry competition pattern
