\u3000\u3 Guocheng Mining Co.Ltd(000688) 169 Beijing Roborock Technology Co.Ltd(688169) )
Event: the company released the annual report of 2021 and the first quarterly report of 2022. In 2021, the annual operating revenue was 5.837 billion yuan, a year-on-year increase of + 28.84%; The net profit attributable to the parent company was 1.402 billion yuan, a year-on-year increase of + 2.41%; It is proposed to distribute a cash dividend of 21 yuan (including tax) for every 10 shares. In 2022q1, the operating revenue was 1.36 billion yuan, a year-on-year increase of + 22.30%; The net profit attributable to the parent company was 343 million yuan, a year-on-year increase of + 8.76%.
Comments:
The annual revenue was in line with expectations, and the introduction of high-end new products helped the company increase its market share. By category, the annual revenue of the company’s floor sweepers / hand-held vacuum cleaners was 5.605232 billion yuan, with a year-on-year increase of + 26.93% / + 102.43% respectively, of which the revenue of private brands accounted for 98.8% and + 40.77% year-on-year. The company strengthened product iteration and technology upgrading, and achieved continuous improvement of market share by launching t7s, g10s and s7ultra series of high-end floor sweepers with self-cleaning, self dust collection and higher obstacle avoidance capabilities. According to ovicloud, up to now, the company’s floor sweepers have accounted for about 19% of the Chinese market, with a year-on-year increase of + 8.39pct. In terms of sub regions, the company has continuously strengthened the construction of overseas distribution channels, and its overseas revenue has continued to increase. In 2021, the company’s overseas / China sales revenue was 3.364/2.473 billion yuan respectively, with a year-on-year increase of + 80.05% / – 7.1% respectively, accounting for 57.63% / 42.37% of the total revenue respectively.
The profit side of 2021 is under pressure, and the profitability of 2022q1 is improved month on month. Disturbed by factors such as rising raw material prices, accounting adjustment of transportation costs and changes in product structure, the company’s gross profit margin in 2021 was – 3.2pct to 48.11% year-on-year. If excluding the impact of changes in accounting standards, we estimated that the gross profit margin was about – 1.9pct, and the annual sales / management / R & D expense rate was + 2.4pct / + 0.2pct / + 1.75pct to 16.08% / 2.04% / 7.55% respectively. Under the comprehensive impact, the net profit margin was – 6.2pct to 24.03% year-on-year. The gross profit margin of 2022q1 company was 47.49%, with a year-on-year increase of – 2.2pct and a month on month increase of + 2.8pct; The net interest rate was 25.22%, with a year-on-year rate of – 3.1pct and a month on month rate of + 6.0pct. Since 2022, the company’s profitability has stabilized and rebounded.
Launch equity incentive plan to bind talents and company interests. At the beginning of 2022, the company issued an equity incentive plan, which plans to grant 248300 restricted shares to no more than 479 key management, technical and business personnel at the price of 50 yuan / share. The company attaches importance to R & D talents and binds the interests of the company and employees through the equity incentive plan, which is conducive to the long-term development of the company.
Investment suggestions: focus on private brands and R & D, consolidate competitive barriers, and maintain the “buy” rating. The company’s domestic market is deeply cultivated and overseas market expansion is accelerated, and the market share is expected to further improve. Considering the disturbance of the epidemic, we fine tune the company’s profit forecast. It is estimated that the company’s net profit attributable to the parent company from 2022 to 2024 will be RMB 1801 / 2284 / 2757 million respectively (the original forecast value of 2022 / 2023 is RMB 1977 / 2488 million), corresponding to the current market value PE of 21 / 17 / 14 times respectively, maintaining the “buy” rating.
Risk tips: geopolitical changes, repeated outbreaks in China, fluctuations in raw material prices, etc.
