\u3000\u3 Guocheng Mining Co.Ltd(000688) 169 Beijing Roborock Technology Co.Ltd(688169) )
Core view:
Event: Beijing Roborock Technology Co.Ltd(688169) released the annual report of 2021 and the first quarterly report of 2022. In 2021, the company achieved an operating revenue of 5.837 billion yuan, an increase of 28.84% year-on-year; The net profit attributable to the parent company was 1.402 billion yuan, a year-on-year increase of 2.41%; Among them, Q4 achieved an operating revenue of 2.01 billion yuan, a year-on-year increase of 29.62%; The net profit attributable to the parent company was 386 million yuan, a year-on-year decrease of 17.8%; In 2021q1, the company achieved an operating revenue of 1.36 billion yuan, a year-on-year increase of 22.3%; The net profit attributable to the parent company was 343 million yuan, a year-on-year increase of 8.76%.
Revenue continued to grow at a high rate. In 2021, the company’s revenue increased by 28.84% year-on-year, including private brand revenue of 5.767 billion yuan, accounting for an increase of 8.08 PCT to 98.80%, and the de Xiaomi has been basically completed. In terms of products, the company sold 2.82 million intelligent floor sweepers, with a year-on-year increase of 18.25%, and the income of intelligent floor sweepers and accessories was 5.605 billion yuan, with a year-on-year increase of 26.93%; The sales volume of hand-held cleaning products was 124000, with a year-on-year increase of 39.45%. The income of hand-held cleaning products and accessories was 232 million yuan, with a year-on-year increase of 102.43%. In terms of sub regions, the company strengthened the construction of overseas channels and expanded the proportion of overseas self operation. During the reporting period, the overseas income was 3.364 billion yuan, an increase of 80.05% year-on-year, accounting for 57.63%; Due to the decrease of cross-border dealer shipments, the company’s domestic revenue was 2.473 billion yuan, a year-on-year decrease of 7.1%. In terms of sub channels, the growth rate of the company’s direct channels is higher than that of the distribution channels. In 2021, the revenue of the company’s direct channels and distribution channels was 1.459 billion yuan and 4.378 billion yuan respectively, with a year-on-year growth rate of 30.64% and 28.25% respectively. In 2022q1, the company’s revenue maintained a high growth rate, mainly due to the good sales performance of G10, which promoted the further improvement of the company’s market share.
Profitability is under short-term pressure. The gross profit margin of the company’s sales in 2021 was 48.11%, down 3.21pct year-on-year. We believe that the decline in gross profit is affected by accounting policy adjustment, rising raw material prices, exchange rate fluctuations and other factors. The gross profit margin of 2022q1 company’s sales was 47.49%, down 2.15pct year-on-year, and the decline of gross profit showed a narrowing trend, mainly due to the increase in the proportion of products with higher gross profit. In 2021, the company’s sales, management, R & D and financial expenses changed by 67.74%, 43.02%, 67.74% and 62.24% year-on-year, and the expense rates were 16.08%, 2.04%, 7.55% and -0.89% respectively, with year-on-year changes of 2.39, 0.20, 1.75 and -0.18pct. The reason why the sales expense rate increased more is that the company further expanded the domestic and foreign markets, resulting in the increase of corresponding promotion fees, platform fees and labor costs. The increase in R & D expense rate is mainly due to the increase in the number and salary of the company’s R & D personnel. The rates of sales, management, R & D and financial expenses of 2021q1 company were 13.35%, 2.17%, 8.59% and – 1.22% respectively, with a year-on-year change of 3.62, -0.37, -0.03 and – 0.28pct. Overall, the company’s net profit margin on sales in 2021 and 2022q1 were 24.03% and 25.22% respectively, with a year-on-year decrease of 6.20 and 3.14pct.
The company issued a restricted stock incentive plan. In 2022, the company announced the restricted stock incentive plan, which plans to grant no more than 248300 shares to incentive objects, accounting for 0.37% of the total share capital of the company. The grant price of restricted shares in this plan is 50 yuan / share. The total number of incentive objects this time is no more than 479, accounting for 50.32% of the total number of the company, including key management personnel, technical backbone and business backbone personnel in the company. At the same time, the company also launched a shareholding plan for business partners, which plans to grant 102200 shares to 30 people, accounting for 0.15% of the total share capital, and the purchase price is 50 yuan / share. The assessment objectives of the two stock ownership plans are based on the income in 2021. The unlocking condition of 100% is that the income growth rate from 2022 to 2025 is not less than 12% / 16% / 20% / 24% respectively. The employee stock ownership plan and equity incentive plan can bind the interests of core personnel and the company and further improve the long-term incentive mechanism of the company.
Investment suggestion: we believe that the company’s products have obvious advantages. With the increase of marketing investment and the improvement of channels, the company’s revenue is expected to maintain high growth. It is estimated that the company’s net profit attributable to the parent company from 2022 to 2024 will be 17.45 and 21.79, and the corresponding EPS will be 26.12 and 32.61 yuan, maintaining the “recommended” rating.
Risk tips: the risk of exchange rate fluctuations, the risk of raw material price changes, and the risk of new product sales falling short of expectations.
