\u3000\u3 Shengda Resources Co.Ltd(000603) 486 Ecovacs Robotics Co.Ltd(603486) )
Core view
Revenue continued to expand rapidly, and the profit in the first quarter was affected by equity incentive fees. In 2021, the company achieved revenue of 13.09 billion / + 80.9%, net profit attributable to parent company of 2.01 billion / + 231.5%, net profit not attributable to parent company of 1.87 billion / + 251.6%. Q4’s revenue is 4.84 billion / + 56.6%, the net profit attributable to the parent company is 680 million / + 73.8%, and the net profit not attributable to the parent company is 650 million / + 77.7%. Q1 revenue is 3.2 billion / + 43.9%, net profit attributable to parent is 420 million / + 27.2%, net profit not attributable to parent is 380 million / + 20.2%. The company plans to pay a cash dividend of 11 yuan (including tax) for every 10 shares. The company’s revenue growth rate remained above 40%, and the volume of revenue expanded rapidly; Q1 profit is affected by the increase of equity incentive payment fee of RMB 90 million. If this part is added back, the net profit attributable to the parent company of Q1 increases by 54.6% to RMB 520 million, the growth rate is still faster than the revenue, and the profitability of the company continues to improve.
New products drive strong revenue growth, and functional upgrading promotes the high-end of dual brands. The company continued to promote the iterative upgrading of products and launched self-cleaning sweeping Siasun Robot&Automation Co.Ltd(300024) N9 +, X1 series, Fuwan 2.0 series and other popular products, driving the rapid growth of sales volume and average price. In 2021, the revenue of Ecovacs Robotics Co.Ltd(603486) brand Siasun Robot&Automation Co.Ltd(300024) increased by 58% to 6.7 billion, the sales volume increased by 11% to 3.4 million units, and the average shipment price increased by 44% to 1963 yuan; Among them, self-cleaning accounts for 55% of China’s Ecovacs Robotics Co.Ltd(603486) floor sweeping Siasun Robot&Automation Co.Ltd(300024) revenue, and X1 series has sold more than 1 billion in more than three months since its listing. Tianke’s revenue increased by 30.8% to 5.1 billion in 2021, rapidly supporting half of the company, with the shipment volume increased by 242% to 26.7 billion and the average shipment price increased by 19% to 1923 yuan; Among them, the sales of Fuwan 2.0 series exceeded 2 billion. In 2022q1, the company’s revenue maintained strong growth, the revenue of Ecovacs Robotics Co.Ltd(603486) brand increased by 50%, and the revenue of Tianke increased by 85%. According to our tracking, the sales of Q1 company’s Tiktok platform are gradually increasing, and the terminal sales account for 18% and 9% of the online sales of Ecovacs Robotics Co.Ltd(603486) . At the same time, following the launch of intelligent frying pan, Tianke also launched new products such as water purifier and wireless modeling comb to expand the category.
The proportion of private brand business increased, which continued to drive the gross profit margin and greatly improved the profitability. The company’s gross profit rate and net profit rate of 2pc3.5t increased to 24.51% due to the rapid growth of the company’s business, while the company’s gross profit rate and net profit rate of 2pc3.5t increased to 24.4% in 2024, while the company’s net profit rate of 2pc3.5t increased. In 2022q1, the gross profit margin of the company increased by 2.7pct to 49.5%, while the expense rate was affected by the continuous increase in the proportion of share based payment and private brand business under equity incentive. The sales / management / R & D / financial expense rate was + 4.4 / + 0.8 / + 1.0 / + 0.4pct to 24.7% / 4.9% / 5.1% / 0.5% respectively, and the net profit margin decreased by 1.8pct to 13.3% year-on-year. Excluding the impact of share based payment, the net profit margin increased by 1.0pct to 16.1% year-on-year.
Risk warning: industry competition intensifies; New product sales are less than expected; Industry demand was lower than expected.
Investment suggestion: adjust the profit forecast and maintain the “buy” rating.
Considering the continuous strong growth of the company’s dual brands and adjusting the profit forecast, it is estimated that the net profit attributable to the parent company from 2022 to 2024 will be 27.7/35.9/4.51 billion (the previous value was 27.8/33.7/4.11 billion), with a growth rate of 37.8% / 29.7% / 25.6%; Diluted EPS = 4.84/6.28/7.89 yuan, PE = 21 / 16 / 13X, maintaining the “buy” rating.
