\u3000\u3 Guocheng Mining Co.Ltd(000688) 169 Beijing Roborock Technology Co.Ltd(688169) )
Event ①: the company announced that the annual report of 2021 and the first quarterly report of 2022 achieved an operating revenue of 5.837 billion yuan in 2021, 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%. In the first quarter of 2022, 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%. Event ②: the company plans to implement the restricted stock incentive plan in 2022, and the performance assessment target is based on 2021, of which the growth rate of the company’s operating revenue from 2022 to 2025 shall not be less than 10% / 14% / 18% / 22% respectively.
Since 2021q4, the share of domestic floor sweepers has increased rapidly, and the export revenue has increased steadily. According to the statistics, the sales volume of Aowei’s new cleaning products increased by 12.6% year-on-year in 2021 and 2021 respectively, with the average sales volume of G10.1 billion yuan and 2021.2% of the company’s new cleaning products increased by 12.6% year-on-year in 2021 and 2021 respectively, 2021q4 / 2022q1 stone China sweeper online sales accounted for 17.4% / 18.9% respectively (year-on-year + 6.3pct / + 8.4pct); In addition, the new double floor washing machine U10 is selling well, driving the high growth of handheld cleaning products and accessories business. Split by region, the company achieved operating revenue of 2.473 billion yuan / 3.364 billion yuan at home and abroad in 2021, with a year-on-year increase of – 7% / 80%; The year-on-year decline in domestic revenue is mainly due to the contraction of the scale of indirect export revenue of Chinese dealers, and the high growth of overseas revenue is mainly due to the rapid expansion of overseas self built channels of the company. In 2022q1, the total revenue of the company increased by 22% year-on-year, of which the domestic sales continued to grow at a high rate, while the export sales continued to expand steadily due to shipping and other constraints.
The high prices of raw materials and shipping suppressed the gross profit margin, and the investment in marketing and R & D continued to increase. In 2021, the company achieved a gross profit margin of 48.11%, with a year-on-year decrease of 3PCT (including the reclassification of transportation fees to the cost side, which affects about 1PCT). The high prices of raw materials and shipping lead to pressure on profitability; In 2021, the ratio of sales / management / R & D expenses was 16.08% / 2.04% / 7.55% respectively, with a year-on-year increase of 2.4pct/0.2pct/1.8pct. The company strengthened the investment in product publicity by hiring star endorsements at the marketing end and continued to increase the investment in software and hardware at the research and development end to support the improvement of brand and product strength; In 2021, the net interest rate attributable to the parent company was 24.03%, a year-on-year decrease of 6pct. In 2022q1, the company achieved a gross sales difference of 34.14%, a year-on-year decrease of about 6pct, mainly due to the continued high prices of raw materials and shipping and the continuous increase of marketing investment; In 2022q1, the net interest rate attributable to the parent company was 25.22%, a year-on-year decrease of about 3PCT.
Focusing on R & D and brand strength improvement, the global competitiveness continues to show. In terms of domestic sales, the new generation of sweeper Siasun Robot&Automation Co.Ltd(300024) t8 and g10s series released in March 2022 are expected to continue to drive the increase of domestic market share and the continuous consolidation of product and brand strength. In terms of export sales, new products such as s7maxv and Q series have driven the rapid expansion of the company’s overseas self built channels, and there is still much room for improvement in the global market share in the future.
Profit forecast and investment suggestions
Combined with the prices of raw materials and shipping, the gross profit margin assumption is lowered. It is predicted that the net profit attributable to the parent company in 20222024 will be RMB 1.763/2.174/2.614 billion respectively (previously predicted to be RMB 2.361/3.084 billion respectively in 20222023). The DCF target valuation of the company is RMB 856.11 and the “buy” rating is maintained.
Risk tips
R & D innovation is less than expected; Industry competition intensifies; Uncertainty risk of trade friction
