\u3000\u3 Shengda Resources Co.Ltd(000603) 848 Guangdong Hotata Technology Group Co.Ltd(603848) )
Key investment points
The performance is slightly lower than our expectation. The company realized an operating revenue of 244 million yuan in 2022q1, a year-on-year increase of + 15.69%; The net profit attributable to the parent company was 45 million yuan, a year-on-year increase of + 1.80%; The net profit attributable to the parent company after deduction was 42 million yuan, a year-on-year increase of + 17.48%.
The channel reform continued to deepen, and the engineering business gradually increased in volume. In terms of channels, 1) online channels: the company actively expands e-commerce channel sales, increases customer unit price through package sales mode, continuously implements new product categories, and carries out differentiated product positioning for different platforms such as jd.com / tmall / pinduoduo; 2) Offline channels: the company's channel reform has achieved remarkable results, and the provincial operation platform model has been implemented, driving the improvement of retail efficiency and end customer experience. By the end of 2021, there were nearly 300 provincial operation platforms, continuously increasing the end market share. 3) Bulk business: the company's engineering business won the bid well, and the clothes dryer won the exclusive bid for the Hangzhou 2022 Asian Games Village project, showing the company's strong brand influence. The company cooperates with a number of central enterprises and large real estate developers with stable operation to develop the intelligent clothes dryer Market. At the same time, the cooperation with property management and home decoration companies is expected to further contribute to the performance increment.
The ability to resist upward pressure is prominent. In terms of profitability, the company's gross profit margin in 2022q1 increased from + 0.20pp to 43.35% year-on-year, and remained stable in the upward stage of raw materials through technology research and development; The net interest rate attributable to the parent company increased from -2.39pp to 18.59% year-on-year, mainly due to changes in fair value and increase in expenses during the period. In terms of expense rate during the period, the sales expense rate / management expense rate / R & D expense rate / financial expense rate increased from + 1.54pp / + 0.84pp / - 1.16pp / - 0.93pp to 15.90% / 10.27% / 2.60% / - 0.97% respectively year-on-year. The company's expense rate during the period increased year-on-year, mainly due to the increase of consulting service fee, real estate depreciation fee and other expenses.
The epidemic has led to poor logistics system and slightly affected business efficiency. In terms of operating efficiency, affected by factors such as the closure and control of the epidemic, the company's 2022q1 business cycle increased by 53.78 days to 163.45 days year-on-year, the number of inventory turnover days increased by 56.35 days to 127.91 days year-on-year, and the number of accounts receivable turnover days increased by 2.58 days to 35.53 days year-on-year.
Profit forecast and investment rating: the company's channel reform continues to deepen, smart home products are upgraded iteratively, engineering channels continue to increase in volume, and the company's performance is expected to grow steadily. Considering the short-term rise in raw material prices and the disturbance of the epidemic, we lowered the net profit attributable to the parent company from 2022 to 2024 to 340 / 4.0 / 460 million yuan (the original forecast was 370 / 4.3 / 500 million yuan), corresponding to 13 / 11 / 10x PE from 2022 to 2024, maintaining the "overweight" rating.
Risk tip: the price of raw materials changes, product promotion is less than expected, competition intensifies, and the effect of channel reform is less than expected.
