\u3000\u3 Guocheng Mining Co.Ltd(000688) 169 Beijing Roborock Technology Co.Ltd(688169) )
Performance review
On April 20, the company released the annual report of 21 years and the first quarter report of 22 years. The revenue of 21 years was 5.837 billion yuan, a year-on-year increase of + 28.84%, and the net profit attributable to the parent company was 1.402 billion yuan, a year-on-year increase of + 2.41%. The revenue of 21q4 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%. The revenue of 22q1 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%.
Business analysis
21 annual report: revenue side: the overseas revenue in 21 years was 3.364 billion yuan, with a year-on-year increase of about 80%; The domestic market revenue was 2.473 billion yuan, accounting for 42.37%. Since the listing of G10, the market share of stone in domestic floor sweepers has increased significantly, and the domestic revenue performance of 21q4 exceeded the market expectation. Ovicloud: the sales share of 21q4 online sweeper stones was 17.4% (+ 6.3pct), a year-on-year increase of + 106%. Profit side: the gross profit margin of 21q4 is 44.7% (- 6.7pct), mainly due to the impact of raw material prices and changes in accounting policies (transportation fees are adjusted to operating costs); The sales expense rate is + 5.0pct, mainly due to the increase of marketing investment in overseas peak seasons and the promotion of high-end new products in China. Under the comprehensive influence, the net interest rate attributable to the parent company of 21q4 is 19.2% (- 11.1pct).
22 first quarter report: the revenue side has excellent business performance, and the domestic sales share continues to increase. 22q1’s revenue was 1.36 billion yuan, with a year-on-year increase of + 22.30%. In the Chinese market, the sales of Aowei cloud’s 22q1 online cleaning appliance stone brand increased by 88% year-on-year, of which the sales share of stone brand in the online floor sweeper market was 18.9% (+ 8.4pct), and the corresponding sales increased by 72% year-on-year; Overseas market: the revenue is expected to increase slightly. In terms of profit, the net profit margin attributable to the parent company of Q1 is 25.2% (- 3.1pct), which is mainly due to the increase of marketing and brand promotion, resulting in the increase of sales expense rate. In addition, there is still pressure on the raw material environment.
Profit adjustment & investment suggestions
There is still enough room for development in the global Sweeper Market. The company pays attention to product and technological innovation and adheres to improving the user experience. In recent years, it has continued to increase the marketing layout and enhance the brand voice, which is expected to continue to lead the development of the industry. We estimate that the company’s revenue from 2022 to 2024 will be 7.67 billion yuan, 9.61 billion yuan and 11.5 billion yuan respectively, with a year-on-year increase of 31.4%, 25.3% and 19.7%. The net profit attributable to the parent company from 2022 to 2024 is expected to be 1.88 billion yuan, 2.37 billion yuan and 2.78 billion yuan respectively, with a year-on-year increase of 33.9%, 26.4% and 16.9%. EPS is 28.1 yuan, 35.5 yuan and 41.5 yuan respectively. The current share price corresponds to 20.3x, 16.0x and 13.7x PE from 2022 to 2024, maintaining the “buy” rating.
Risk tips
Permeability improvement is less than expected; R & D promotes new products, and the product performance is lower than expected; The overseas market expansion is less than expected, and the shortage of shipping capacity affects the company’s overseas sales; Exchange rate fluctuation risk; The risk of lifting the ban on restricted shares; The risk of stock price changes caused by shareholders’ reduction.
