\u3000\u3 Shengda Resources Co.Ltd(000603) 195 Gongniu Group Co.Ltd(603195) )
2022q1 profit margin improved month on month, optimistic about the long-term growth of new products and b-end business, and maintained the “buy” rating
In 2022q1, the company realized a revenue of 3.078 billion yuan (+ 19.58%), a net profit attributable to the parent company of 641 million yuan (+ 5.68%), and a net profit not attributable to the parent company of 562 million yuan (+ 0.7%) was deducted. The non recurring profits and losses came from government subsidies and other differences in the same period. Considering the gradual effect of price increase and the expected growth of new category and b-end business, we maintain the profit forecast unchanged. It is estimated that the net profit attributable to the parent company from 2022 to 2024 will be RMB 3.085/36.57/4.263 billion, corresponding to EPS of RMB 5.13/6.08/7.09, and the current share price corresponding to PE of 24.7/20.8/17.9 times respectively, maintaining the “buy” rating.
The online e-commerce business maintained a bright performance, and the offline channels maintained steady growth due to the disturbance of the epidemic
In terms of online e-commerce, according to the business consultant data, the Gmv of Alibaba wall switch / converter business of 2022q1 company was + 9.92% / + 49.61% year-on-year respectively, the market share of Gmv was 25.25% / 53.34% year-on-year respectively, and the market share was + 2.98pcts / + 8.29pcts year-on-year respectively. The leading position of the two core categories was stable. In addition, the Gmv of Ali’s new energy power connection / home decoration lighting business of 2022q1 company reached 25 million yuan / 38 million yuan respectively, of which the market share of new energy power connection business reached 11.1%, with a chain comparison of + 6.03pcts, and the new category is in the rising channel. In terms of offline business, affected by the epidemic in China at the beginning of the year, the growth rate is expected to slow down slightly, but still maintain steady growth, with a year-on-year increase of about 12%.
In 2022q1, the profit margin improved month on month, and the year-on-year decline still occurred under the pressure of raw material cost
The gross profit margin of 2022q1 company was 34.47%, with a year-on-year increase of – 3.3pcts and a month on month increase of + 2.2pcts. The month on month improvement may be due to the appropriate price increase of wall opening and some LED products at the beginning of the year. Cost side. In 2022q1, the sales expense / management expense / R & D expense / financial expense ratio of the company was 5.25% / 3.93% / 3.64% / – 0.88% respectively, with a year-on-year increase of + 0.62pcts / + 0.4pcts / + 0.55pcts / – 0.27pcts respectively. The increase in expense ratio was caused by the company’s increased brand investment and channel reform. Under the comprehensive influence, the net interest rate of 2022q1 was 20.84%, with a year-on-year ratio of -2.74pcts and a month on month ratio of + 3.81pcts.
The channel reform and b-end expansion plan have been carried out steadily, and we continue to be optimistic about the continuous volume of new energy and LED products
Looking forward to 2022, in terms of core main business, it is expected that the converter and wall opening business will grow steadily. With the upgrading of the company’s comprehensive stores, combined with the promotion of the strategy of one town and one store and the development of small and medium-sized decoration enterprises at the b-end, we continue to be optimistic about the high growth of decorative lamps and household appliances under the coordination of strong channels, as well as the growth of ownerless lamps in the field of b-end decoration enterprises. The new energy power connection industry has broad space and the company’s online advantages are prominent. It is suggested to pay attention to the development of small b-end market.
Risk warning: the sales of new products are less than expected; The risk of industry competition intensifies; The price of raw materials continues to rise.
