\u3000\u3 Shengda Resources Co.Ltd(000603) 195 Gongniu Group Co.Ltd(603195) )
Events
On April 26, the company released the first quarterly report of 2022. In the first quarter, the company achieved a revenue of 3.08 billion yuan, a year-on-year increase of + 19.6%, a year-on-year increase of + 5.7% to 640 million yuan in net profit attributable to the parent company, and a year-on-year decrease of non attributable net profit of + 0.7% to 560 million yuan. The overall performance was basically in line with expectations. In addition, the company’s contractual liabilities increased by 300 million yuan to 730 million yuan month on month at the end of the first quarter.
Comments
1q’s revenue growth is relatively excellent, and the expansion of new categories is smooth: according to business lines, 1q’s revenue from electrical connection business is expected to increase by nearly 10% year-on-year. While the converter category continues to grow steadily, the charging gun and charging pile category continue to grow rapidly. The 1q revenue of intelligent electrician lighting business is expected to increase by about 30% year-on-year, mainly driven by the rapid growth of lighting business. Yuba, intelligent door lock and other intelligent ecological products are expected to still double year-on-year growth, while the growth of wall opening products is expected to be relatively stable. In addition, the 1q revenue of digital accessories products is expected to increase slightly year-on-year.
1q’s profitability is under pressure year-on-year, and the gross profit margin has begun to improve month on month: 1q’s gross profit margin is – 3.3pct to 34.5% year-on-year, which is expected to be mainly due to the increase in the proportion of new product revenue with 1q’s raw material price still high and low gross profit margin. However, on a month on month basis, with the price increase and landing of some products in January this year, the gross profit margin has increased by 2.2pct compared with 4q in 21 years. With the gradual weakening of the impact of raw materials, the company’s profitability can be repaired. In terms of expense ratio, the company’s 1q marketing expenses have increased to support the expansion of new categories. The 1q sales expense ratio is + 0.6pct to 5.2% year-on-year. In addition, the management expense ratio is + 0.4pct to 3.9% year-on-year, and the R & D expense ratio is + 0.6pct to 3.6% year-on-year.
Two strategic tracks have been defined, and the long-term growth path has become clearer: in addition to the core advantages of offline C-end channels, the company has continued to make efforts through multiple channels. B-end has established solid cooperation with more than 120 well-known decoration companies in China. E-commerce channels have maintained the first place in the core category market, and has gradually built an omni-channel competitive advantage. With the establishment of smart ecology and new energy as the future development direction, strategic products such as charging gun, charging pile and no main lamp have been launched one after another. Relying on the empowerment of brand, channel and manufacturing advantages, the share of new products of the company can be continuously improved, and the long-term growth path is becoming clearer and clearer.
Profit forecast and investment suggestions
We maintain the previous profit forecast and predict that the EPS in 20222024 will be 5.44 and 6.44 respectively 34 yuan and 7.37 yuan. The current share price corresponding to PE is 23x / 20x / 17x respectively, maintaining the “buy” rating.
Risk tips
Poor channel expansion at end B; Poor expansion of new categories; The price of raw materials has risen sharply.
