\u3000\u3 Shengda Resources Co.Ltd(000603) 486 Ecovacs Robotics Co.Ltd(603486) )
Event: in 2021, the company achieved a revenue of 13.086 billion yuan, a year-on-year increase of + 80.90%, and a net profit attributable to the parent company of 2.010 billion yuan, a year-on-year increase of + 213.51%; In 2021q4, the revenue was 4.842 billion yuan, a year-on-year increase of + 56.60%, and the net profit attributable to the parent company was 680 million yuan, a year-on-year increase of + 73.80%; In 2022q1, the revenue was 3.201 billion yuan, a year-on-year increase of + 43.90%, and the net profit attributable to the parent company was 424 million yuan, a year-on-year increase of + 27.20%.
We will continue to deepen Ecovacs Robotics Co.Ltd(603486) + Tianke two wheel drive and remain the leader of dual category in China. In 2021, Ecovacs Robotics Co.Ltd(603486) brand achieved a revenue of 6.71 billion yuan, a year-on-year increase of + 58.4%, and Tianke brand achieved a revenue of 5.14 billion yuan, a year-on-year increase of + 308.0%. The total growth of private brands was 115.6%, the proportion increased by 14.6pct to 90.53%, and remained the leader of dual category. Q1 company’s private brands still maintained excellent growth, with household service Siasun Robot&Automation Co.Ltd(300024) brands + 50.3%, Tianke + 85.3% and total private brands + 63.7% year-on-year, accounting for 94.0%. According to ovicloud, the market share of Q1 Ecovacs Robotics Co.Ltd(603486) , one touch floor sweeper line is 44.4%, with a year-on-year increase of + 1.0pct, and the market share of adding washable floor sweeper line is 54.0%. Recently, the company has launched Ecovacs Robotics Co.Ltd(603486) t10omni, tiankefuwan 3.0 and other heavy new products. With the gradual recovery of logistics and the advent of superposition 618, the company will strengthen the promotion. Driven by the new products, Q2 is expected to continue its high growth and stabilize its leading position.
Affected by share based payment, Q1 profit declined. Due to the increase in the proportion of private brands and the optimization of product structure, the gross profit margin of Q4 has improved significantly, with a year-on-year increase of + 10.0pct to 54.7%, the gross profit margin of 22q1 was 49.5%, a year-on-year increase of + 2.8pct and a month-on-month decrease of -5.2pct. We believe that the decline in gross profit margin is mainly due to the change in product structure. Q1 Ecovacs Robotics Co.Ltd(603486) brand launched the new T10 series, with cost-effective pricing. At the same time, the proportion of sub brands increased a little, resulting in the decline in Q1 gross profit margin. On the expense side, the Q1 share based payment fee increased by nearly 90 million yuan year-on-year, resulting in an increase in expense investment and a year-on-year decline in net interest rate. The net interest rate of 22q1 was 13.3%, year-on-year -1.76pct. After excluding the impact of this part, the profitability increased steadily.
Investment suggestion: multi brand strategy ensures the high growth of the company. China’s clean electrical appliance industry is still in its early stage and is expected to continue to penetrate in the future. As a dual category leader, the company will take the lead in benefiting. It is expected that the company will realize a net profit of RMB 2.592/34.62/4.513 billion from 2022 to 2024, maintaining the “buy” rating.
Risk tip: the performance of new products is less than expected, the supply of raw materials is at risk, and the market competition is intensified.
