\u3000\u3 Shengda Resources Co.Ltd(000603) 486 Ecovacs Robotics Co.Ltd(603486) )
Event: Ecovacs Robotics Co.Ltd(603486) released the annual report of 2021 and the first quarterly report of 2022. The company’s single quarter revenue in 2021q4 was 4.84 billion yuan, yoy + 56.6%; Achieved a performance of 680 million yuan, yoy + 73.8%. 2022q1 company’s revenue is 3.2 billion yuan, yoy + 43.9%; The performance was 420 million yuan, yoy + 27.2%. In 2021, the revenue of Ecovacs Robotics Co.Ltd(603486) , Tianke brands increased rapidly and their profitability improved significantly. The categories of floor sweepers and floor washers have strong growth, and the company’s revenue is expected to maintain a rapid growth trend. The company actively layout new tiktok channels, and so on, is expected to harvest channel dividends.
Driven by new channels and categories, Ecovacs Robotics Co.Ltd(603486) brand Q1 maintained rapid growth: 2022q1 Ecovacs Robotics Co.Ltd(603486) home services Siasun Robot&Automation Co.Ltd(300024) brand business revenue yoy + 50.3%. According to Orville data (not counting the new channel of jitter), Ecovacs Robotics Co.Ltd(603486) + tiktok 2022Q1’s online sales YoY-2% in the single quarter. Sales tiktok channel of 2022Q1 tiktok has increased rapidly, and 2022Q1 Ecovacs Robotics Co.Ltd(603486) + has a GMV channel of 270 million yuan (flying melon data). By summing up the above data, 2022q1 Ecovacs Robotics Co.Ltd(603486) + Yidian online sales yoy + 31%. In addition, the company’s window treasure, Qinbao and other new categories grew rapidly, and the proportion of revenue increased continuously. In 2021, the revenue of Fenbao and Qinbao accounted for 10.9% of the company’s China Service Siasun Robot&Automation Co.Ltd(300024) revenue, with a year-on-year increase of + 2.4pct. We estimate that the revenue of Fenbao and Qinbao will reach 510 million yuan in 2021, with a year-on-year growth rate of nearly 100%.
The floor washing machine industry expanded rapidly, and Tianke Q1 maintained a high growth rate: in 2022q1, the business revenue of Tianke brand was yoy + 85.3%. According to Aowei data, the online sales volume of 2022q1 floor washer industry is yoy + 75%, and the industry maintains a high growth rate; The competition of the washing machines online has been intensified. 2022Q1 can add online sales YoY+30%, and the sales volume of the tiktok online sales is 54%, up to -19pct (Orville caliber, not counting the jitter). Considering the channel of jitter, 2022Q1 tiktok can sell YoY+52% online (orto + flying melon). Looking forward to the follow-up, we believe that Tianke brand can still maintain rapid growth, mainly because: 1) the popularity of floor washing machine is low and the industry has strong growth; 2) the company actively layout tiktok, the channel under the line, the expansion of channel expansion is obvious. 3) The company actively expands new categories. Following the intelligent frying pan, Tianke Q1 launched a new water purifier to drink 10000 yuan.
The gross profit margin of the company in Q1 fell month on month: the gross profit margin of the company in 2022q1 was 49.5%, month on month (2021q4-5.2pct). We think it is mainly because: 1) the sales proportion of younger brands has increased slightly, and the superposition has entered the off-season of sales, the proportion of Ecovacs Robotics Co.Ltd(603486) high-end products has decreased, and the average price of floor sweepers of 2022q1 company has decreased compared with 2021q4. According to Aowei data, Ecovacs Robotics Co.Ltd(603486) + one point sweeping Siasun Robot&Automation Co.Ltd(300024) 2022q1 online average price was 3245 yuan, down 6% from 2021q4; 2) The price of raw materials and sea freight continued to rise, and the cost pressure of the company increased month on month.
Affected by share based payment fees, the company’s Q1 profitability declined slightly in the same quarter: the 2022q1 Ecovacs Robotics Co.Ltd(603486) attributable net profit margin was 13.2%, with a year-on-year increase of -1.7pct. The main reasons are as follows: 1) the company has laid out new channels and categories, and the investment of sales expenses has increased. The sales expense rate of 2022q1 company is 24.7%, with a year-on-year increase of + 4.4pct; 2) Q1 share based payment expenses have increased significantly. We estimate that the proportion of 2022q1 share based payment expenses / revenue of the company is + 1.8pct year-on-year (the company’s multiple equity incentives are expected to generate 370 million share based payment expenses in 2022).
The company’s net cash flow from operating activities in Q1 increased year-on-year: Ecovacs Robotics Co.Ltd(603486) Q1 net cash flow from operating activities was 210 million yuan, a year-on-year increase of + 70 million yuan, and the cash flow was in good condition. The cash paid by the company for purchasing goods and receiving labor services in Q1 was 2.43 billion yuan, yoy + 57.1%, reflecting the optimistic follow-up demand, and the company actively prepared goods.
Investment suggestion: Ecovacs Robotics Co.Ltd(603486) as the leader of floor sweeping Siasun Robot&Automation Co.Ltd(300024) industry, it has the advantages of technology, channel and supply chain, continuously optimizes the product and cost structure, and has a large margin for improvement of profitability. The rapid development of Tianke brand gives the company greater revenue performance flexibility. It is estimated that the company’s EPS from 2022 to 2023 will be 4.52/5.76 yuan respectively.
Prompt: the RMB appreciation rate is lower than expected, resulting in a significant improvement in the risk of competition
