\u3000\u3 Guocheng Mining Co.Ltd(000688) 169 Beijing Roborock Technology Co.Ltd(688169) )
Event:
The company issued the annual report of 2021 and the report of the first quarter of 2022: the revenue in 2021 was 5.84 billion yuan (+ 29%), and the net profit attributable to the parent company was 1.4 billion yuan (+ 2%), of which 21q4 achieved revenue of 2.01 billion yuan (YoY + 30%); The net profit attributable to the parent company is 390 million yuan (yoy-18%). 22q1 achieved a revenue of 1.36 billion yuan (YoY + 22%), and a net profit attributable to the parent company of 340 million yuan (YoY + 9%). The company plans to launch the restricted stock incentive plan in 2022 and the first phase of the business partner shareholding plan, which will grant 248000 shares and 102000 shares (the grant price is 50 yuan / share) to 479 backbone employees and 39 core managers (the total number of employees of the company is 952), and the performance assessment target is that the year-on-year growth rate of operating revenue from 2022 to 2025 will be 10% / 4% / 4% / 3% respectively.
Comments:
Self cleaning new products have driven the rapid growth of China’s revenue, and the proportion of independent brand revenue has increased to 99%. By product, in 2021, the floor sweeping Siasun Robot&Automation Co.Ltd(300024) revenue was 5.61 billion yuan (+ 27%), of which the sales volume was 2.82 million units (+ 18%), the average price was 1988 yuan (+ 7%), and the proportion of private brand revenue increased to 98.8%. In China, in the past 21 years, the company mainly promoted t7s (the price is lower than t7pro in 20 years) and self-cleaning product G10, of which the market share of the latter has an upward trend since September 21 (the whole market sales accounted for 17.4% in February 22), driving the rapid growth of stone’s sales amount in China (the year-on-year growth rates of Aowei data 21q3 / 21q4 / 22q1 are 58% / 130% / 88% respectively), In addition, the pre-sale of g10s launched by the company in early 22 was also strong (performance telephone conference). Overseas, the company was once affected by poor shipping in 21q2-21q3 (especially the shipping schedule is affected by the port congestion of North American routes). At present, the marginal shipping situation is alleviated (the port congestion is relieved, and the freight rate is still high). In the future, the company is expected to enjoy the low base dividend of q2-q3 overseas sales. In 2022, the company will launch a new product s7maxv series overseas to attract foreign consumers through automatic dust collection and self-cleaning functions. At the same time, it will launch more cost-effective q7max + and other new products to meet the challenge of moving down the price band of foreign brands.
The cost input is enhanced, the net interest rate shows a downward trend, and the income quality is excellent. In 2021, the company’s gross profit margin was 48.1% (yoy-3.2pcts), while in 21q4 and 22q1, the gross profit margin decreased by 6.7 and 2.1 percentage points respectively year-on-year. The decline in gross profit margin in 21 was mainly due to the adjustment of accounting standards (freight is included in operating costs from selling expenses). In addition, the impact of material price rise was gradually revealed in 21h2. The sales expense rate in 21 years was 16.1% (+ 2.4pcts), and the sales expense rate in 22q1 was yoy + 3.6pcts, mainly due to the increase in the proportion of Chinese business, which needs to be matched with more sufficient marketing investment; In the past 21 years, the company’s R & D expense rate was 7.6% (+ 1.8pcts), mainly due to the increase of new product R & D and share based payment expenses. In the past 21 years, the net interest rate of the company’s parent company was 24.0% (- 6.0 PCTs), and the net interest rate decreased significantly, mainly due to the higher requirements for business cost investment in China and more fierce competition in overseas business. In terms of balance sheet and cash flow statement, at the end of the year, the company’s own cash was 5.55 billion yuan (accounting for 57% of the total assets), there was no interest bearing liabilities, and the operating safety cushion was sufficient; The net cash flow from operating activities in 21 years was 1.52 billion yuan, accounting for more than 100% of the net profit attributable to the parent company.
Profit forecast, valuation and rating: the company is a leading enterprise applying lidar technology and related algorithms to intelligent sweeping Siasun Robot&Automation Co.Ltd(300024) field on a large scale. With the support of strong R & D strength, the product matrix is constantly enriched, and the penetration of private brands increases, driving the growth of profitability. Considering that the demand in Europe and the United States may show a certain contraction period due to upward inflation, and the industry competition may compress the net interest rate level of relevant companies, the net profit of the company in 202223 will be reduced to RMB 1.65/1.82 billion (8% / 17% lower than the previous forecast), and the 24-year profit forecast will be increased to RMB 2.07 billion, corresponding to 23, 21 and 18 times of PE, maintaining the rating of “overweight”.
Risk tip: the price of raw materials has increased significantly, the market competition has intensified, and the shipping channel is not smooth.
