\u3000\u3 Bohai Water Industry Co.Ltd(000605) 299 Shuhua Sports Co.Ltd(605299) )
The company released the first quarter report of 2022. In 2022q1, the operating revenue was 278 million yuan, a year-on-year decrease of 13.74%; The net profit attributable to the parent company was 13 million yuan, a year-on-year increase of 4.30%.
Revenue side: the company achieved an operating revenue of RMB 278 million in 2022q1, a year-on-year decrease of 13.74%. In 2021, Q1-Q4 achieved operating revenue of RMB 322 / 4.06/3.61/473 million respectively, with a year-on-year increase of 48.2% / 2.56% / 1.64% / - 8.28% respectively. 22q1's revenue decreased year-on-year, or due to the slowdown of the impact of the epidemic in 21 years, the development of e-commerce business and the growth of export sales led to a higher base.
Gross profit margin: the company's gross profit margin in 2022q1 was 29.04%, with a year-on-year increase of 3.00pct. The gross profit margin of Q1-Q4 of the company in 2021 was 26.04% / 30.60% / 25.11% / 29.97% respectively, with a year-on-year increase of -3.15pct / - 0.80pct / - 3.56pct / - 1.35pct respectively. The company's gross profit margin remained basically stable at the beginning of the year, and the impact of rising raw material costs is expected to slow down.
Expense side: the expense rate of the company during 2022q1 was 21.82%, with a year-on-year increase of 3.66pct. Among them, ① the sales expense ratio was 10.02%, with a year-on-year increase of 1.77 PCT; ② The management expense ratio was 8.88%, with a year-on-year increase of 1.25 PCT; ③ The R & D expense ratio was 2.88%, with a year-on-year increase of 0.57 PCT; ④ The financial expense ratio was 0.04%, with a year-on-year increase of 0.07pct. The company continues to promote the process of product intelligence, continuously carry out product iteration and product innovation on this basis, actively explore multi-channel construction, actively layout online channels and open marketing ideas.
Profit side: the company realized a net profit attributable to the parent company of 13 million yuan in 2022q1, with a year-on-year increase of 4.30%; The net interest rate attributable to the parent company was 4.78%, with a year-on-year increase of 0.83pct. From Q1 to Q4 in 2021, the company realized a net profit attributable to the parent company of RMB 0.13/0.45/0.20/0.38 billion respectively, with a year-on-year increase of + 23.62% / + 4.15% / - 2.92% / - 39.58% respectively; The net interest rate attributable to the parent company was 3.96% / 11.11% / 5.56% / 8.01% respectively, with a year-on-year increase of -0.79pct / + 0.17pct / - 0.26pct / - 4.15pct respectively.
The whole scene + Intelligent enabled products enhance the power, and Online + to G help expand the channel end. On the product side, the company is committed to realizing the whole scene sports solution, meeting the sports needs of the whole population, and continuously upgrading the "indoor scene" solution for national fitness. From 2020 to the end of 2021, the company has undertaken to build more than 600 people's gyms. At the same time, the company combines intelligent software technology with fitness equipment hardware technology to launch Shuhua sports app to deeply match users' fitness needs. Channel side, the company's distribution channels continue to expand, and continuously strengthen the online channels, Jingdong, Tmall tiktok sales have increased steadily, and added the sales mode of the jitter. In addition, the company actively carries out to g business, obtains government orders through bidding procurement procedures and competitive negotiation of local sports bureaus and other government units, and mainly sells outdoor path products and indoor fitness equipment products.
Investment suggestion: under the background of sports policy stimulation and industry demand increment in the future, cultivating independent brands, product R & D and innovation, and the continuous and large amount of g-end resources will help the company further improve its market share. We expect the net profit attributable to the parent company in 22-23 years to be RMB 210 / 240 million, corresponding to PE of 25X / 21x respectively, maintaining the "buy" rating.
Risk warning: the risk of high concentration of customers in exhibition business, high risk of accounts receivable, and income fluctuation risk of outdoor route business
