\u3000\u3 Shengda Resources Co.Ltd(000603) 195 Gongniu Group Co.Ltd(603195) )
Gongniu Group Co.Ltd(603195) disclosed the results of the first quarter of 2022:
The operating revenue of the company in the first quarter was 3.1 billion (YoY + 20%), the net profit attributable to the parent company was 640 million (YoY + 6%), and the deduction of non net profit was 560 million (YoY + 0.7%).
Revenue: steady growth
The company’s revenue grew steadily in a single quarter, and the growth rate was accelerated month on month. It is expected that the original categories will maintain steady growth, and new products such as electric vehicle charging piles will also continue to contribute.
Profit: slightly repaired compared with the ring
1. Gross profit margin: Q1 was 34.5%, yoy-3.3pct, mom + 2.2pct. The maintenance of high bulk costs brings pressure, but it is gradually repaired and digested month on month.
2. Expense ratio: Q1 sales, management and R & D are + 0.6, + 0.4 and + 0.6pct respectively year-on-year. It is expected that the main reason is to increase investment in new product promotion and channel construction;
3. Net interest rate: Q1 was 20.8%, yoy-2.7pct, mom + 3.8pct. Among them, the government subsidy is 35 million, affecting the net interest rate by about 0.9 PCT.
Cash flow:
The company’s net operating cash flow in Q1 increased by 22% year-on-year, and continued to maintain steady operation. Capital expenditure: Q1 was 310 million, with a year-on-year increase of 333% and 51% month on month, which may be due to the increase of production capacity construction such as new products.
Investment suggestions:
We maintain the annual performance forecast. We predict that the revenue from 2022 to 2024 will be RMB 14.44 billion, 16.5 billion and 18.1 billion, with a year-on-year increase of 17%, 14% and 10%. The net profit attributable to the parent company is expected to be RMB 3.33 billion, 3.9 billion and 4.4 billion, with a year-on-year increase of 20%, 17% and 13%. The corresponding PE is 23, 20 and 17x, maintaining the buy rating.
Risk tips:
The downstream demand is less than expected, the expansion of new categories is less than expected, the overseas expansion is less than expected, the cost fluctuation of upstream raw materials, supply shortage, etc., the risk of delayed delivery of goods caused by the rise of sea freight and port congestion, the risk of new technology iteration, product innovation is less than expected, the risk of distortion of third-party data, the risk of delayed information or delayed update of public data used in the research report, and policy risk.
