\u3000\u3 Shengda Resources Co.Ltd(000603) 486 Ecovacs Robotics Co.Ltd(603486) )
Event:
On April 22, 2022, Ecovacs Robotics Co.Ltd(603486) released the annual report of 2021 and the first quarterly report of 2022. In 2021, the company’s revenue was 13.086 billion yuan (+ 80.90%); The net profit attributable to the parent company was 2.010 billion yuan (+ 213.51%). In 2022q1, the revenue was 3.201 billion yuan (+ 43.90%), and the net profit attributable to the parent company was 424 million yuan (+ 27.20%).
Key investment points:
Ecovacs Robotics Co.Ltd(603486) + Tianke two wheel drive, with rapid revenue growth in 2021. 1) Sub brands: the revenue of independent brands is 11.847 billion (+ 116%). Among them, Ecovacs Robotics Co.Ltd(603486) / Tianke brand revenue was 6.71 billion yuan (+ 58%) / 5.137 billion yuan (+ 308%) respectively. 2) By Region: domestic / overseas revenue was 8.368 billion yuan (+ 117%) / 4.718 billion yuan (+ 40%) respectively. Among them, Ecovacs Robotics Co.Ltd(603486) / Tianke brand export revenue was + 60% / + 181% year-on-year respectively.
The rise of average price drives the increase of gross profit margin, and marketing investment affects the level of net profit margin in 2022q1. 1) 2021q4 gross profit margin 54.68% (+ 10PCT); The gross profit margin of 2022q1 is 49.53% (+ 2.8pct). The increase of gross profit margin benefits from the high-end upgrading of product structure and the increase of average price. 2) The net interest rate of 2021q4 is 14.04% (+ 1.35pct), and that of 2022q1 is 13.26% (-1.76pct). The increase of net profit margin in 2021q4 is lower than the gross profit margin, and the decline of net profit margin in 2022q1 is caused by the continuous launch of new products, and the company increases marketing investment to accelerate brand construction.
Ecovacs Robotics Co.Ltd(603486) + Tianke two wheel drive has a strong growth momentum and maintains the “buy” rating. We expect the net profit attributable to the parent company from 2022 to 2024 to be RMB 2.78/36.5/4.66 billion, corresponding to EPS of RMB 4.8/6.3/8.0, and the current share price corresponding to PE of 20.8/15.9/12.5 times.
Risk tips: shortage of chips, tight shipping, intensified competition, repeated epidemics and blocked research and development.
