\u3000\u3 Shengda Resources Co.Ltd(000603) 486 Ecovacs Robotics Co.Ltd(603486) )
Performance summary: the company released the annual report of 2021 and the first quarterly report of 2022. In 2021, the company achieved a revenue of 13.09 billion yuan, a year-on-year increase of 80.9%; The net profit attributable to the parent company was 2.01 billion yuan, a year-on-year increase of 213.5%. Q4 achieved a revenue of 4.84 billion yuan in a single quarter, a year-on-year increase of 56.6%; The net profit attributable to the parent company was 680 million yuan, a year-on-year increase of 73.8%. In 2022q1, the company achieved a revenue of 3.2 billion yuan, a year-on-year increase of 43.9%; The net profit attributable to the parent company was 420 million yuan, a year-on-year increase of 27.2%. In addition, the company plans to pay a cash dividend of 1.1 yuan per share, totaling 630 million yuan, with a dividend rate of 31.4%.
The industry maintained a high boom and deepened two wheel drive. According to the total data pushed by ovicloud, the sales volume of China’s clean electrical appliances market reached 30.94 billion yuan in 2021, with a year-on-year increase of 28.9%. As a leading enterprise of clean electrical appliances, the company continues to deepen the two wheel drive strategy of Ecovacs Robotics Co.Ltd(603486) + Tianke. With leading product power and comprehensive channel layout, the company’s brand revenue of Ecovacs Robotics Co.Ltd(603486) and Tianke has achieved rapid growth. In 2021, the revenue of Ecovacs Robotics Co.Ltd(603486) / Tianke brand increased by 58.4% / 308.0% year-on-year to RMB 6.71/5.14 billion respectively. The revenue of the two private brands accounted for 90.5% of the total revenue, an increase of 14.6pp year-on-year.
Build high R & D barriers and further consolidate the market competitive advantage. The company continued to increase research and development. In 2021, the company’s R & D expenditure reached 550 million yuan, a year-on-year increase of 62.5%. Efficient R & D investment has consolidated the company’s technology leading advantage. By the end of the reporting period, the company had obtained 1202 authorized patents and 1089 patents in application. Rich technical reserves have laid the foundation for the company’s continuous production of new products. In September 2021, the company launched the industry’s first all-round base station X1 series sweeper, leading the sweeper to enter the real AI development stage. During the reporting period, X1 series products have sold more than 200000 units and achieved sales revenue of nearly 1 billion yuan. During the “double 11” period in 2021, the all channel turnover and trading volume of X1 series products ranked first in the industry. In addition, on the basis of fuwandai, Fuwan 2.0 series of floor washing machine has been further optimized. The sales volume of Fuwan 2.0 series products accounts for nearly 45% of the company’s annual floor washing machine sales, realizing a sales revenue of more than 2 billion yuan, driving the rapid growth of Tianke brand revenue and the scale of floor washing machine industry.
Fully develop the high-end market and greatly improve the profitability. In 2021, the company’s comprehensive gross profit margin was 51.4%, with a year-on-year increase of 8.6pp, of which Q4 gross profit margin was 54.7%, with a year-on-year increase of 10.1pp. Thanks to the increase in the proportion of high-end products, under the background of the sharp rise in raw materials, the company’s gross profit margin increased rather than decreased. Among them, the average shipping price of the company’s free brand floor sweeper reached 1963 yuan / set, a year-on-year increase of 43.7%; The average shipping price of floor washing machine products reached 1923 yuan / set, a year-on-year increase of 19.1%. In Q4 single quarter, the increase in the proportion of high-end products represented by X1 series further promoted the upward movement of the company’s product sales price center. According to AVC data, from October to December 2021, the average terminal sales prices of Ecovacs Robotics Co.Ltd(603486) , Tianke products were 3221 / 3597 / 3201 yuan and 3256 / 3418 / 3463 yuan respectively, with a year-on-year increase of 68% / 83% / 65% and 9% / 15% / 10% respectively. In terms of expenses, the company’s sales expense ratio increased by 3.2pp to 24.7% year-on-year, mainly because the company actively carried out global market layout and strengthened brand marketing; The management expense rate / R & D expense rate / financial expense rate decreased by 1.1pp/0.5pp/0.3pp to 4% / 4.2% / 0.6% respectively year-on-year. Overall, the company’s net interest rate was 15.4%, with a year-on-year increase of 6.5pp.
Q1 revenue continued to increase, and brand marketing continued to strengthen. In the first quarter, Ecovacs Robotics Co.Ltd(603486) / Tianke dual brands continued to make efforts, and the revenue increased by 50.3% / 85.3% respectively year-on-year, driving the continuous high growth of the company’s operating revenue. In terms of gross profit margin, thanks to the continuous optimization of product structure, the gross profit margin of 2022q1 company increased by 2.8pp to 49.5% year-on-year. In terms of expenses, the sales expense rate / management expense rate / R & D expense rate / financial expense rate increased by 4.4pp/0.8pp/1pp/0.4pp to 24.7% / 4.9% / 5.1% / 0.5% respectively year-on-year. The large increase in the sales expense rate is mainly due to the company’s continued investment in channel construction and brand construction. Overall, due to the increase of expense rate, the net interest rate of the company was slightly under pressure, down 1.8pp to 13.3% year-on-year.
Profit forecast and investment suggestions. The company’s leading position in the industry is stable, and the average price of products continues to rise. In the future, with the diversified optimization of the company’s product channels, it is expected that the company’s comprehensive competitiveness will be further improved. It is estimated that the company’s EPS from 2022 to 2024 will be 4.71 yuan, 6.23 yuan and 8.28 yuan respectively, maintaining the “buy” rating.
Risk warning: the price of raw materials may fluctuate sharply and the terminal sales may be less than expected.
