\u3000\u3 Shengda Resources Co.Ltd(000603) 486 Ecovacs Robotics Co.Ltd(603486) )
In 2021, driven by the brands of Ecovacs Robotics Co.Ltd(603486) and Tianke, the company’s revenue increased significantly and its profitability improved significantly. In 2021, the annual revenue reached 13.086 billion yuan, an increase of 80.9% year-on-year; The net profit attributable to the parent company was 2.01 billion yuan, a year-on-year increase of 213.51%. In 2021, the net interest rate attributable to the parent company reached 15.36%, with a year-on-year increase of 6.5pct. Including: gross profit margin + 8.55pct to 51.4% year on year; The sales expense ratio increased from + 3.16pct to 24.73% year on year; The R & D expense ratio was – 0.48pct to 4.2% year on year; The management expense ratio increased from -1.12pct to 4.01% year-on-year.
22q1 income continued to increase, and the net interest rate decreased slightly compared with the same period. 22q1 achieved a revenue of 3.201 billion yuan, a year-on-year increase of 43.9%; The net profit attributable to the parent company was 424 million yuan, a year-on-year increase of 27.2%. The net interest rate of the parent company decreased by 13.74pct year-on-year. Including: gross profit margin + 2.75pct to 49.53% year on year; The sales expense ratio increased from + 4.35pct to 24.74% year on year; R & D expense ratio + 0.98pct to 5.1% year on year; The management expense ratio increased from + 0.81pct to 4.89% year-on-year.
By product, in 2021, the revenue of Ecovacs Robotics Co.Ltd(603486) brand reached 6.71 billion yuan, accounting for 51% of the total revenue, an increase of 58.4% over the previous year. The revenue of Tianke brand reached 5.137 billion yuan, accounting for 39% of the total revenue, an increase of 308% over the previous year. The OEM business declined as a whole, among which the vacuum cleaner OEM business decreased by 41% year-on-year, and the proportion in revenue decreased to 7%; The floor sweeper OEM business increased by 68% year-on-year, accounting for 1% of revenue. The proportion of independent brands ( Ecovacs Robotics Co.Ltd(603486) + Tianke) of the company as a whole increased to 90.5%, and the proportion of OEM business decreased to less than 10%.
The proportion of OEM business of 22q1 company continued to decline, and the revenue of OEM business decreased by 58.4% year-on-year. Among independent brands, Ecovacs Robotics Co.Ltd(603486) revenue was + 50.3% year-on-year, Tianke revenue was + 85.3% year-on-year, and the proportion of independent brands increased to 94%.
According to different channels, the company’s domestic / overseas revenue in 2021 was 8.37 billion yuan / 4.72 billion yuan respectively, and the proportion of overseas revenue decreased to 36%. We believe that it is mainly due to the rapid growth of China’s independent brand revenue and the decline of the scale of overseas OEM business. Online / offline revenue of 8.7 billion yuan / 4.39 billion yuan respectively. Excluding OEM business, online revenue accounted for 71% of independent brand revenue in 2021, basically the same as that in 2020, and the overall channel structure of the company remained stable.
The product structure continues to be upgraded, and the floor sweeper + floor washer is driven by two wheels. In 2021, the company successively launched N9 + and X1 series self-cleaning products, and the revenue of self-cleaning products accounted for 54.7% of the revenue of Ecovacs Robotics Co.Ltd(603486) brand in the Chinese market. On the basis of fuwandai, Tianke brand quickly launched Fuwan 2.0 series. The sales volume of Fuwan 2.0 series accounted for nearly 45% of the sales volume of the company’s floor washing machine in the whole year, and the sales revenue exceeded 2 billion yuan. Overall, among the Ecovacs Robotics Co.Ltd(603486) brands, the revenue of high-end products represented by global planning products accounted for 91.0%, with a year-on-year increase of + 10.3pct. Among them, the proportion of product sales with retail price of 35006000 yuan increased to 41.33%, driving the average shipping price of Ecovacs Robotics Co.Ltd(603486) brand to 1963 yuan, with a year-on-year increase of 43.7%. The average sales price of Tianke products has always been at the leading level in the market. In 2021, the average shipment price further increased to 1923 yuan, a year-on-year increase of 19.1%.
This year, the company continues to strengthen product functions in the high-end field, complete the product line and fill the blank price segment. The new t10turbo sweeper can be compared with the standard stone G10, which has been supplemented in its previously vacant price range of 35004000 yuan. On the same price as G10, t10turbo improves the suction and active obstacle avoidance. T10omni further improves the cost performance of the product, and strategically reduces the navigation and mop functions compared with X1 series, positioning the product price in a more cost-effective position. The product form of the floor washer is relatively determined, and the water tank capacity and endurance can be continuously upgraded. Tianke 3.0 upgraded the water tank capacity and service life on the basis of the previous generation of products, and designed the brush head with double welts. The product price is 4990 yuan, 16% higher than that of the 2.0 LCD version.
Investment advice. After the X1 series gained a firm foothold in the top market last year, the company continues to promote new self-cleaning products in the middle and high price segment this year, and continues to promote the cost-effective brand yeedi. The high and low ends go hand in hand, which is expected to bring steady growth in the sweeping Siasun Robot&Automation Co.Ltd(300024) business. The competition in the washing machine industry has intensified, but we judge that the company will still maintain its leading position and benefit from the growth of the industry by virtue of brand accumulation. We believe that there is still room for improvement in the follow-up gross profit margin under the optimization of the company’s own brand structure of floor sweepers this year. We expect the company’s EPS to be 4.52/5.74/7.36 yuan in 22-24 years (previously predicted EPS to be 3.57 yuan, 4.92 yuan and 6.32 yuan in 20212023), and give the company a valuation of 35xpe in 2022, corresponding to a reasonable target price of 158.2 yuan (previously predicted 40xpe valuation in 2022, target price of 196.8 yuan), maintaining the rating of “better than the market”.
Risk warning. The growth of clean electrical appliance industry is less than expected, and the industry competition is intensified.
