\u3000\u3 Guocheng Mining Co.Ltd(000688) 169 Beijing Roborock Technology Co.Ltd(688169) )
The net interest rate of 2022q1 was higher than expected, optimistic about the continued high growth of domestic and foreign sales driven by Shangxin, and maintained the “buy” rating
In 2021, the company achieved revenue of 5.84 billion (+ 28.8%). The revenue of 2021q4 was 2.01 billion (+ 29.6%), mainly driven by the continuous hot sales of G10. In 2022q1, the revenue reached 1.36 billion (+ 22.3%), maintaining rapid growth under the high base. Net profit attributable to Q1 (+ 1.4 billion) and net profit attributable to Q1 (+ 1.7 billion) / Q1 (+ 2.8 billion) in 2021 and 2021 respectively. The net interest rate of 2022q1 exceeded expectations, mainly due to the continuation of the marketing effect of 2021q4, driving the improvement of net interest rate month on month. We maintain the profit forecast for 20222023 and newly added 2024. It is estimated that the net profit attributable to the parent company from 20222024 will be RMB 1.78/23.8/3.04 billion, EPS will be RMB 26.7/35.7/45.5, and the corresponding PE of the current stock price is 21.4/16.0/12.5 times, maintaining the “buy” rating.
New categories and global business expansion accelerated, and the proportion of private brands increased rapidly
By product, in 2021, the revenue of intelligent sweeper and accessories was 5.61 billion (+ 26.9%), and the revenue of handheld cleaning products and accessories was 230 million (+ 102.4%), accounting for + 1.5pcts of revenue, which was mainly driven by the hot sales of floor washer U10. In terms of regions, in 2021, the domestic business revenue was 2.47 billion (- 7.1%), and the overseas business revenue was 3.36 billion (+ 80.1%), which was mainly due to the company’s increase in the expansion of overseas self built distribution channels and the initiative to reduce the sales proportion of Chinese dealers such as Mu Chen. According to the business model, in 2021, the company achieved a private brand revenue of 5.77 billion yuan (+ 40%), accounting for 98.8% (+ 8.1pcts) of revenue. The proportion of private brand revenue remained rising, driving the continuous improvement of gross profit margin.
In 2022q1, the logic of month on month increase in net interest rate was fulfilled, and the launch of a new phase of equity incentive helped long-term development
The gross profit margin of sales in 2021 was 48.1% (- 3.2pcts). The decline was mainly due to the adjustment of freight caliber (from sales expense to cost), the rise of raw materials and exchange rate fluctuations. In 2021, the gross profit margin of handheld cleaning products and accessories was 46.9% (+ 12.1pcts). The main line is driven by the hot sales of new product U10. In 2022q1, the overall gross profit margin of the company was 47.5% (- 2.2pcts), up 2.8pcts month on month. The sales / R & D expense ratio in 2021 was + 2.4 / + 1.8pcts respectively, strengthening the brand channel and product advantages. The net profit margin of sales in 2021 is 24.0% (- 6.2pcts). The net interest rate in 2022q1 was 25.2% (- 3.1pcts), up 6.0pcts month on month. The gross profit margin is improving, the rate can be improved, and the net profit margin is expected to remain stable. The company launched the equity incentive plan, which includes 479 management, technical and business backbones. We believe that it will help to bind the consistency of interests between the core backbones and listed companies and promote the long-term sustainable development of the company.
Risk warning: industry competition intensifies; Shortage of raw material supply; New product sales were lower than expected.
