\u3000\u3 Guocheng Mining Co.Ltd(000688) 793 Shenzhen Breo Technology Co.Ltd(688793) )
Event: the company released the 21st Annual Report and the first quarterly report of the 22nd year. The company achieved a revenue of 1.19 billion yuan in 21 years, an increase of 43.93% at the same time; The net profit attributable to the parent company was 92 million yuan, an increase of 29.92% at the same time. Among them, the single quarter revenue of 21q4 was 376 million yuan, an increase of 23.77%; The net profit attributable to the parent company was 26 million yuan, down 31.78% at the same time. 22q1 company’s revenue was 248 million yuan, an increase of 15.29% at the same time; The net profit attributable to the parent company was -9.89 million yuan (11.13 million yuan in the same period last year).
The new products of Neck Massager + moxibustion have a bright performance, and the epidemic situation affects offline channel sales. 1) By product,
The neck massager and the new moxibustion box are eye-catching. In the past 21 years, the revenue of the company’s neck massager increased by 50.2% to 310 million yuan, accounting for 26%. According to the data of “business consultant” quoted in the annual report, the market share of Shenzhen Breo Technology Co.Ltd(688793) neck massager products on tmall platform increased by 5.5pct to 9.5% year-on-year. The company 21h2 has successively launched a number of new TCM personal care products, among which the sales of moxibustion series products are rapid and large-scale, with an annual sales volume of 60.25 million yuan, and the proportion of revenue has rapidly increased to 5.1%. 2) In terms of channels, online high growth and offline pressure. Online: increase the online layout under the epidemic, accounting for more than half of the revenue. In the 21st year / 22q1, the online revenue increased by 58.4% / 48.8% to RMB 680 million / 160 million, and the proportion of revenue increased to 57.5% / 66.2%. Among them, the online B2C (direct selling) revenue increased by 61.9%, accounting for 65.1% of the online revenue in the 21st year, contributing to the main revenue of the company’s online channels; Offline: 21q3 is caused by repeated outbreaks, and high-speed railway and airport hub stores are greatly affected. 21 years / 22q1 + 26.1% / – 15.4% year-on-year to 440 million / 80.06 million yuan. By the end of the 21st century, the company had 186 Direct stores, including 108 / 78 stores in shopping centers / transportation hubs.
The epidemic affected the sales of transportation hub stores, and the profitability of a single quarter was under pressure in the short term. Gross profit margin: in 21 years, the gross profit margin of the company decreased by 1.6pct to 56.7%, of which 21q4 / 22q1 decreased by 7.6/2.8pct to 50.0% / 53.9%, mainly due to the impact of the epidemic on the sales of offline transportation hub stores with strong profitability. Expense rate: the annual rate is basically stable, of which the 21q4 sales rate is -1.7pct, which decreases in the same direction as the single quarter gross profit margin. It is expected that it is mainly due to the provision of sales expenses to operating costs in accounting standards. Net interest rate: the annual net interest rate was slightly -0.78pct to 7.75%, of which 21q4 was -5.5pct to 7.0% year-on-year.
The 22-year equity incentive was issued to demonstrate confidence in long-term development. The company issued the restricted stock incentive plan for 2022, which plans to grant a total of 1.77 million shares of the company, accounting for 2.87% of the current total share capital. 1) Grant price: 27.40 yuan / share (the latest closing price is 55.14 yuan / share); 2) Incentive objects: a total of 149 people, including senior executives, core technicians and other important employees. 3) Performance objective: Based on 21 years, the growth rate of revenue and net profit in 22-24 years shall not be less than 30% / 69% / 119.7% (CAGR about 30%).
Profit forecast and investment suggestions. We expect that the company will be greatly affected by the epidemic in 22 years and resume high growth from 23 years. It is expected that the net profit attributable to the parent company in 202224 will be RMB 84 / 156 / 208 million respectively, with a year-on-year increase of – 8.7% / 86.5% / 32.8%, maintaining the “buy” rating.
Risk tips: the expansion of new products is less than expected, the epidemic repeatedly affects sales, and the expansion of channels is less than expected
