\u3000\u30 Xuchang Ketop Testing Research Institute Co.Ltd(003008) 66 Anker Innovations Technology Co.Ltd(300866) )
Event: on April 25, the company released the first quarterly report of 2022. During the reporting period, the company achieved a revenue of 2.865 billion yuan / year-on-year + 18.04%, a net profit attributable to the parent of 199 million yuan / year-on-year – 2.74%, and a net profit not attributable to the parent of 158 million yuan / year-on-year – 0.87%. The performance basically met the expectations.
New product channels continued to expand, and operating revenue maintained stable growth. During the reporting period, the company’s new product channels continued to expand: 1) since 2022, the company has launched a number of innovative products, including ankerwork b600 smart office audio hardware, eufysecurity double camera doorbell, eufy pet d605 pet monitoring and feeding machine, Anker 655 usb-c hub eight in one expansion dock and so on. In April, the company launched ankermake, a brand of high-end consumer 3D printer, and launched Anker 757 outdoor power supply overseas; 2) The company continued to promote global business expansion, consolidated mature markets and actively explored emerging markets including Chinese Mainland. During the reporting period, the company achieved domestic operating revenue of RMB 110million / +29.48% and overseas operating revenue of RMB 2.755 billion / +17.63%. Overall, the operating revenue maintained a stable growth.
The rise of costs and expenses is generally controllable, R & D efforts are strengthened, and the profits are basically in line with expectations. Since the fourth quarter of last year, the financial caliber of the company has been adjusted. In 2022q1, the gross profit margin of the company is 38.16% / -6.92pct, and the sales expense rate / management expense rate / financial expense rate is – 7.30pct / + 0.12pct / -0.15pct to 20.47% / 3.35% / 0.17% year-on-year respectively. However, the overall operating profitability is basically stable, and the rise of the cost side affected by many aspects is generally controllable. In addition, the company continued to increase R & D investment. During the reporting period, the R & D cost was 207 million yuan / + 69.50%, and the R & D cost rate increased by 2.20 PCT to 7.24% year-on-year; The net profit attributable to the parent company was 199 million yuan / year-on-year – 2.74%, and the net profit not attributable to the parent company was 158 million yuan / year-on-year – 0.87%. The profit basically met the expectation.
The overall cash flow was stable and the advance payment increased. 1) As of the end of the reporting period, the balance of prepayment of the company was 208 million yuan / + 156.96%, mainly due to the increase of prepayment for material preparation and goods locking; 2) The net operating cash flow was -193 million yuan, slightly optimized compared with the same period.
Investment suggestion: the company is the benchmark of China’s overseas brand. Reviewing the company’s history, it has not only achieved the core competitiveness of existing products / brands / channels, but also confirmed the strategic vision of the management; The existing foundation accumulates and builds the cornerstone. In the face of a broad market, it continues to iterate and has great potential. During the reporting period, the company relied on a single channel and the revenue decreased steadily; Affected by short-term factors such as freight and raw materials, the profitability decreased year-on-year. We are firmly optimistic about the growth of the company. It is estimated that the net profit attributable to the parent company from 2022 to 2023 will be 1.130 billion yuan / 1.370 billion yuan respectively, and the EPS will be 2.78 yuan / share and 3.37 yuan / share respectively. The corresponding valuation of the current stock price is 19.3/15.9 times PE respectively, maintaining the “buy” rating and the target price is 83 yuan.
Risk warning: product R & D risk or sub category development is seriously less than expected; The bargaining power at the channel end is greatly weakened or the cost is greatly increased; Risk of epidemic impact outside China; Significant changes in talent and organization.
