\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 22 years. In 2021, the company realized an operating revenue of 13.086 billion yuan, a year-on-year increase of + 80.90%; The net profit attributable to the parent company was 2.010 billion yuan, a year-on-year increase of + 213.51%. In 22 years, Q1 company realized an operating revenue of 3.201 billion yuan, a year-on-year increase of + 43.90%; The net profit attributable to the parent company was 424 million yuan, a year-on-year increase of + 27.20%. It is proposed to pay a cash dividend of RMB 11 per 10 shares, with a dividend rate of 31.40% and a dividend rate of 1.10%.
Dual brands jointly drive high performance growth, and the leading position of the industry is stable. In 21 years, Q4 company realized an operating revenue of 4.842 billion yuan, a year-on-year increase of + 56.60%; The net profit attributable to the parent company was 680 million yuan, a year-on-year increase of + 73.80%. By brand, the revenue of Ecovacs Robotics Co.Ltd(603486) main brand in 21 years was 6.71 billion yuan, a year-on-year increase of + 58.42%; Tianke brand achieved a revenue of 5.137 billion yuan, a year-on-year increase of + 307.97%. The revenue of the two private brands accounted for 90.53% of the company’s total revenue, an increase of 14.53pct compared with 20 years. In terms of product sales volume, the sales volume of self-produced service-oriented Siasun Robot&Automation Co.Ltd(300024) ( Ecovacs Robotics Co.Ltd(603486) brand + Siasun Robot&Automation Co.Ltd(300024) ODM) was 3564400 units, a year-on-year increase of + 14.76%; The sales volume of intelligent household appliances (Tianke brand + ODM / OEM of cleaning appliances) was 4.9358 million units, a year-on-year increase of + 2.98%. According to the sales mode, the online revenue in 21 years reached 8.699 billion yuan, a year-on-year increase of + 116.52%; Offline revenue reached 4.387 billion yuan, a year-on-year increase of + 36.40%. In terms of regions, the revenue of domestic business was 8.368 billion yuan, a year-on-year increase of + 117.07%; The revenue of overseas business was 4.718 billion yuan, a year-on-year increase of + 39.63%. According to zhongyikang data, the scale of the sweeper industry in 21 years was 10.8 billion, a year-on-year increase of + 22.2%, and the growth rate of the company far exceeded the industry average Ecovacs Robotics Co.Ltd(603486) leading position is very stable. In the past 21 years, the online and offline market share of floor sweepers were 43.5% and 86.6% respectively, significantly ahead of competitors. At the same time, Tianke brand continues to dominate the floor washing machine market, with an online channel market share of 69.7%.
Q4 gross profit margin increased significantly and increased marketing expenses. The gross profit margin in 21 years was 51.41%, with a year-on-year increase of + 8.55pct; The net interest rate was 15.39%, a year-on-year increase of + 6.49pct. Q4 gross profit margin was 54.68%, year-on-year + 10.05pct; The net interest rate was 14.04%, a year-on-year increase of + 1.35pct. According to our calculation, excluding the changes of transportation fee accounting standards, the gross profit margin of 21q4 increases by about 8pct in the same caliber. The substantial increase in gross profit margin in a single quarter may be mainly due to: 1) the proportion of private brands with high gross profit margin has increased significantly, 2) the upgrading of product structure, the high-end new product X1 launched by Q4 and other new products in 21 years. In 21 years, the proportion of 3 Jointo Energy Investment Co.Ltd.Hebei(000600) 0 yuan products of the company increased from 5.11% in 20 years to 41.33%. From the perspective of expense ratio, Q4 sales expenses increased significantly, reflecting the company’s attention to building brand influence and resisting the risk of intensified market competition. The annual rates of sales, management and R & D expenses were 24.73%, 4.01 and 4.20%, respectively + 3.16, – 1.12 and -0.48pct year-on-year; Q4 sales, management and R & D expense rates were divided into 27.76%, 3.38 and 4.51%, respectively + 8.46, – 0.77 and + 0.55pct year-on-year. The gross profit margin of Q1 in 22 years was 49.53%, with a year-on-year increase of + 2.75pct; The net interest rate was 13.26%, with a year-on-year decrease of -1.76pct, mainly because the Q1 sales expense rate was + 4.35pct year-on-year.
The stock of raw materials and complete machines increased, and the receivable turnover rate increased. 1) In the 21st year, the company’s cash + other current assets totaled 3.737 billion yuan, a year-on-year increase of 76.21%, and contract liabilities + other current liabilities totaled 513 million yuan, a year-on-year increase of 84.16%, mainly due to the expansion of the company’s revenue scale; Notes and accounts receivable totaled 1.784 billion yuan, a year-on-year increase of + 38.49%; At the end of the year, the inventory was 2.417 billion yuan, a year-on-year increase of + 88.16%, and the stock of raw materials and complete machines increased significantly. 2) In terms of turnover, the company’s inventory turnover days in 21 years were + 5.32 days year-on-year, and the turnover days of accounts receivable were -12.87 days year-on-year. The receivable turnover rate increased significantly. 3) The net operating cash flow of the company in 21 years was 1.757 billion yuan, a year-on-year increase of + 46.83%; Q4 net operating cash flow was 1.284 billion, a year-on-year increase of + 37.94%.
Deepen the two wheel drive and multi brand matrix strategy, and accelerate the layout of emerging channels and overseas. In terms of brands and products, we expect that the company will deepen the two wheel drive strategy in the future, continue to improve the product layout of household and commercial floor sweepers and floor washers, continue to strengthen technical barriers and consolidate market leading advantages. At the same time, the company disclosed that it will build a new brand of floor washing machine youni. We expect that the brand will be positioned at the middle and low end, which will further expand the market coverage of the company’s floor washing machine products. In terms of overseas market expansion, the company will promote the launch of x1, T10 and other core products in major overseas markets, actively explore local localized sales channels, and expand the global influence and radiation of the brand. In terms of channel, we believe that the company will continue to strengthen the layout of new online channels, deepen content operation and crowd operation. In March 22, Ecovacs Robotics Co.Ltd(603486) + tiktok brand sales amount had reached about 180 million yuan. Offline will further build flagship stores and exhibition halls in key cities across the country to convey the brand image.
Profit forecast: the company’s Ecovacs Robotics Co.Ltd(603486) + Tianke brand has a solid leading position in the industry, and the proportion of private brands and the average price of products continue to increase. In the future, with the company’s deepening layout in products, brands, channels and going to sea, the global influence and competitiveness are expected to further improve. We estimate that the company’s operating revenue in 22-24 years will be 17.272/22.284/27.54 billion yuan respectively, with a year-on-year increase of + 32.0% / + 29.0% / + 23.6% respectively; The net profit attributable to the parent company was RMB 2.724/35.64/4.460 billion, with a year-on-year increase of + 35.5% / + 30.8% / + 25.1% respectively, and the corresponding PE was 20.93/16.00/12.79 times.
Risk factors: the price of raw materials continues to rise, the global epidemic risk intensifies, the supply of chips is in short supply, the industry competition continues to intensify, the development of new products is less than expected, and the development of overseas channels is less than expected.
