\u3000\u3 Guocheng Mining Co.Ltd(000688) 169 Beijing Roborock Technology Co.Ltd(688169) )
Event: Beijing Roborock Technology Co.Ltd(688169) released the annual report of 2021 and the first quarterly report of 2022. The company’s single quarter revenue in 2021q4 was 2.01 billion yuan, yoy + 29.6%; Achieved performance of 390 million yuan, yoy-17.8%. In 2022q1, the company’s revenue in a single quarter was 1.36 billion yuan, yoy + 22.3%; Performance of 340 million yuan, yoy + 8.8%. The company issued the restricted stock incentive plan for 2022 and the first phase of the “business partner” shareholding plan. In 2022q1, the revenue growth continued the Q4 trend, and the profitability was significantly improved month on month. We believe that stone’s domestic sales share continues to increase, and China’s business is expected to maintain rapid growth; The boom of overseas floor sweepers is expected to improve marginally. The new products of stone overseas will also be released in Q2, and the overseas share is expected to increase.
The revenue growth rate of Q1 in a single quarter continued the trend of 21q4: the revenue growth rate of 2022q1 was -7.3pct compared with 2021q4. In terms of regions, China’s income still maintains rapid growth. According to Ovi data, the online sales of 2022q1 stone sweeper is yoy + 72%. After the release of the new stone G10, the product competitiveness has been significantly improved. The sales share of 2022q1 stone sweeper reached 19%, with a year-on-year increase of + 8pct (orvey). We estimate that the year-on-year growth rate of overseas revenue of stone Q1 in a single quarter is 5% ~ 10%. The global search popularity of 2021q4 stone Google is yoy + 18%, and that of 22q1 is yoy + 6%. The export boom of 22q1 stone is still relatively low. Looking forward to the follow-up, stone’s overseas new products will be listed in Q2, which is expected to boost the company’s share; The overseas penetration rate of floor sweepers has maintained a steady upward trend in the past few years. The overseas market base of 2021h2 floor sweepers is low, and the superimposed shipping pressure is expected to be gradually relieved. The overseas market growth rate of 2022h2 floor sweepers is expected to pick up (iRobot predicts that the revenue growth center of 2022h2 is 30%).
Q1 single quarter gross profit margin increased month on month: Stone 2022q1 single quarter gross profit margin was 47.5%, which increased month on month compared with 2021q4 (we calculated that the increase rate of gross profit margin of the same caliber was about 1PCT). We believe that it is mainly due to the high selling price of G10, and the average online sales price of 2022q1 stone sweeper increased by 79 yuan month on month compared with Q4, which has a certain pulling effect on the gross profit margin.
The efficiency of marketing investment was improved, and the profitability of Q1 was improved month on month: the net interest rate attributable to parent company in the single quarter of stone 2022q1 was 25.2%, Q4 + 6.0pct month on month. The gross profit margin sales expense ratio in 2022q1 was 34.1%, compared with 2021q4 + 10.6pct. The company’s profitability increased month on month, mainly because the Q1 sales expense rate decreased more month on month. In order to grasp the development opportunity of self-cleaning floor sweepers, stone 21q4 increased the investment of sales expenses, and the online share of 21q4 stone brand floor sweepers increased by + 6pct to 17% year-on-year. 22q1 when the sales expense rate decreased month on month, stone still maintained an online share of 19%, reflecting the improvement of stone expense investment efficiency.
The net cash flow of the company in the quarter increased to q1.7 billion yuan, with a year-on-year decrease of q1.7 billion yuan. In 2022q1, the ratio of cash inflow from operating activities to income was 1.2, which was basically the same as that in the same period of last year. The net operating cash flow of Shitou Q1 decreased year-on-year, mainly because the cash outflow from operating activities of the company increased significantly. We think it is mainly due to the increased stock of stones. The inventory in 2022q1 was 680 million yuan, a year-on-year increase of + 370 million yuan.
Stone released the equity incentive plan to bind the interests of employees and the company: Stone released the 2022 restricted stock incentive plan, which plans to grant 248000 restricted shares to no more than 479 people, accounting for 0.4% of the total share capital. At the same time, the company issued the first phase of the “business partner” shareholding plan, which plans to grant 102000 shares to 39 people, accounting for 0.2% of the total share capital. We believe that the unlocking goal of stone equity incentive plan is relatively difficult to achieve, but the company can better bind the interests of core employees and the company through a small number of incentive methods to form a long-term incentive mechanism.
Investment suggestion: Stone’s leading product power is the basis of future revenue growth. Streamline SKU and excellent operation and management ability to maintain its industry-leading profitability. Commercial floor sweepers, handheld and other categories are expected to gradually increase in volume. It is estimated that the EPS of stone from 2022 to 23 will be 26.57/31.70 yuan respectively, maintaining the investment rating of buy-a.
Risk tip: the epidemic situation worsens and the industry competition intensifies
