\u3000\u3 Shengda Resources Co.Ltd(000603) 486 Ecovacs Robotics Co.Ltd(603486) )
Event: the company released the annual report of 2021 and the first quarterly report of 2022. The annual operating revenue of 2021 was 13.086 billion yuan, a year-on-year increase of + 80.90%; The net profit attributable to the parent company was 2.010 billion yuan, a year-on-year increase of + 213.51%; It is proposed to distribute a cash dividend of 11 yuan (including tax) for every 10 shares. In 2022q1, the operating revenue was 3.201 billion yuan, a year-on-year increase of + 43.90%; The net profit attributable to the parent company was 424 million yuan, a year-on-year increase of + 27.20%.
Comments:
Revenue exceeded 10 billion yuan, and its own brand built the company’s core competitiveness. By category, the company’s annual revenue of serving Siasun Robot&Automation Co.Ltd(300024) / cleaning small household appliances was 6.827 billion yuan / 6.012 billion yuan, with a year-on-year increase of + 58.58% / + 118.52% respectively. The company deepened the dual brand driving strategy of Ecovacs Robotics Co.Ltd(603486) and Tianke, and the sales revenue of private brands increased rapidly. In 2021, the revenue of Ecovacs Robotics Co.Ltd(603486) and Tianke’s private brands increased by + 58.42% / + 307.97% respectively, and the private brand business accounted for 90.63% of the total revenue, 1) Ecovacs Robotics Co.Ltd(603486) : annual shipment volume + 10.81% to 3.4 million units, average shipment price + 43.67% to 1963 yuan, of which the proportion of high-end sweeper revenue increased by 10.3pct to 91.0%; 2) Tianke: the annual shipment volume is + 242.45% to 2.67 million units, and the average shipment price is + 19.13% to 1923 yuan. The company makes great efforts in the high-end market, and the volume and price of its own brands rise together, driving the company’s revenue to exceed 10 billion yuan; 3) In terms of regions, in 2021, the overseas business revenue of Ecovacs Robotics Co.Ltd(603486) / Tianke brand was + 60.26% / + 180.65% respectively year-on-year, accounting for 30.91% / 31.66% respectively. The company is committed to building a world-class brand, the layout of global channels and supply chains is becoming more and more perfect, and the overseas revenue regulation continues to grow rapidly.
The gross profit margin increased against the trend and the profitability improved steadily. In 2021, the company’s gross profit margin increased from + 8.6pct to 51.41% year-on-year. Against the background of the sharp rise in the price of bulk raw materials, the gross profit margin increased, mainly due to the increase in the proportion of high-end products under the optimization of product structure. The annual sales / management / R & D expense ratio was + 3.2pct / – 1.1pct / – 0.5pct to 24.73% / 4.01% / 4.20% respectively. The increase in sales expense ratio was mainly due to the company’s increase in private brand promotion, which had a comprehensive impact on the annual net profit margin of + 6.5pct to 15.36% year-on-year. The gross profit margin of 2022q1 company increased by 2.8pct to 49.53% year on year; The net interest rate rose from – 1.7pct to 13.23% year-on-year, mainly due to the significant increase in Q1 share based payment expenses over the same period last year. If this factor is excluded, the net interest rate in 2022q1 is about + 0.6pct, and the profitability has been steadily improved.
Investment suggestion: strive to build a world-class service Siasun Robot&Automation Co.Ltd(300024) brand from China, cover it for the first time and give it a “buy” rating. The promotion of the company’s own brand has entered an accelerated period, and the global layout has become more and more perfect. It is expected that with the continuous introduction of high-end new products, the market share is expected to continue to increase. We expect the net profit attributable to the parent company in 20222024 to be RMB 2.714/35.55/4.345 billion respectively, corresponding to 21 / 16 / 13 times of the current market value PE respectively. It is covered for the first time and given a “buy” rating.
Risk tip: real estate policy regulation risk, repeated epidemic situation in China, fluctuation of raw material price, etc.
