\u3000\u3 Guocheng Mining Co.Ltd(000688) 169 Beijing Roborock Technology Co.Ltd(688169) )
Event:
On April 21, 2022, Beijing Roborock Technology Co.Ltd(688169) released the 2021 annual report and the first quarterly report of 2022. In 2021, the company’s revenue was 5.837 billion yuan (+ 28.84%); The net profit attributable to the parent company was 1.402 billion yuan (+ 2.41%). In 2022q1, the revenue was 1.36 billion yuan (+ 22.30%), and the net profit attributable to the parent company was 343 million yuan (+ 8.76%).
In 2021, the revenue side will grow rapidly and the overseas revenue will be beautiful. 1) Sub products: floor sweepers / hand-held products, with a revenue of 5.605 billion yuan (+ 27%) / 232 million yuan (+ 102%). 2) By Region: domestic / overseas revenue of 2.473 billion yuan (- 7%) / 3.364 billion yuan (+ 80%). 3) Sub channels: direct sales / distribution revenue of 1.459 billion yuan (+ 31%) / 4.378 billion yuan (+ 28%).
2021q4 gross profit margin is under pressure, and 2022q1 profitability is repaired. 1) Raw material prices rose, gross profit margin was under pressure, product structure was optimized, and 2022q1 was improved month on month. The gross profit margin of 2021q4 is 44.74% (-6.72pct), and the decline is due to the change of accounting standards, the price pressure of raw materials, the adjustment of product structure and the fluctuation of exchange rate; 2022q1 gross profit margin 47.49% (- 2.15pct), mom + 2.75pct. 2) The strategic increase in marketing investment dragged down the net interest rate in 2021 and significantly increased in 2022q1. 2021q4 net interest rate is 19.22% (-9.14pct), and the decline is due to increased investment in marketing expenses. Excluding the change of accounting caliber, the sales expense rate in 2021q4 was + 4.95pct year-on-year. The net interest rate in 2022q1 was 25.22% (- 3.14pct), up 6pct from 2022q4.
Product leadership + marketing force + global channel layout, first coverage, and “buy” rating. We estimate that from 2022 to 2024, the net profit attributable to the parent company will be RMB 1.75/22.9/2.71 billion, corresponding to EPS of RMB 26.3/34.2/40.6, and the current share price corresponding to PE of RMB 21.9/16.9/14.2.
Risk tips: tight shipping, repeated epidemics, blocked research and development, rising prices of raw materials and exchange rate fluctuations.
