\u3000\u30 Shaanxi Zhongtian Rocket Technology Co.Ltd(003009) 94 Joy Kie Corporation Limited(300994) )
Event: Joy Kie Corporation Limited(300994) released the 2021 annual report and the first quarter report of 2022. In 2021, the company achieved an operating revenue of 3.71 billion yuan, an increase of 62.31% year-on-year; The net profit attributable to the parent company was 205 million yuan, a year-on-year increase of 30.91%; The net profit attributable to the parent company after deduction was 189 million yuan, a year-on-year increase of 34.68%. In 2021q4, the company realized an operating revenue of 1.116 billion yuan, a year-on-year increase of 24.82%; The net profit attributable to the parent company was 58 million yuan, a year-on-year decrease of 5.48%; The net profit attributable to the parent company after deducting non profits is 51 million yuan. In addition, in the first quarter of 2022, the company achieved an operating revenue of 774 million yuan, a year-on-year increase of 3.31%; The net profit attributable to the parent company was 42 million yuan, a year-on-year increase of 27.41%; The net profit attributable to the parent company after deducting non profits was 42 million yuan, with a year-on-year increase of 30.38%.
The product structure has been continuously optimized and upgraded, and adult bicycles and electric bicycles have increased rapidly
In terms of products, in 2021, the company's revenue from adult bicycles, children's bicycles, power assisted electric bicycles and accessories reached RMB 12.15/7.43/3.57/1.240 billion respectively, with a year-on-year increase of 100.50% / 33.69% / 101.06% / 73.91%. The high performance was mainly due to the reduction of public transport travel caused by the continuous impact of the epidemic abroad, the significant increase in the demand for bicycles, and China's epidemic was the first to be effectively controlled, So that the company can rely on its rich overseas sales network and perfect supply chain system to actively respond to global customer order demand. At the same time, the company actively promotes the optimization and upgrading of bicycle product structure. In order to help the upgrading of electric bicycle industry chain and intelligent technology, the company invested and established Hangzhou Jiuyi Intelligent Technology Co., Ltd. with its own funds in March 2022, The project invested by the raised funds "annual output of 1 million adult bicycles" was changed to "annual output of 1 million bicycles and 1 million electric mopeds intelligent manufacturing project" and "annual output of 1.6 million bicycles, baby carriages and 400000 electric mopeds digital technology transformation project", so as to continuously strengthen the company's competitive advantage in the field of electric bicycles.
The main business of ODM has accelerated expansion, and the growth of independent brands can be expected
According to the sales model, the company's ODM business realized a revenue of 2.258 billion yuan in 2021, accounting for 60.87%, with a year-on-year increase of 72.73%; OBM achieved a year-on-year growth of RMB 1.202 billion, accounting for 6.64% of the business revenue. In terms of ODM business, the company has outstanding comprehensive advantages in supply chain management and R & D design, and has established a stable customer group in overseas markets. In terms of private brands, the company vigorously develops online sales through various cross-border e-commerce platforms and develops B2B and B2C businesses. In the future, the company will build an online exhibition mode through self built stations, strengthen online sales, continue to expand the proportion of export sales of its own brands, and improve the company's global popularity and brand influence.
22q1 improved profitability and better cost control during the period
The company's comprehensive gross profit margin fell 7.54pct to 12.63% year-on-year in 21 years, mainly due to the change of accounting policies, the company reclassified the transportation costs incurred in performing customer sales contracts to "operating costs"; After retroactive adjustment, the gross profit margin fell by 3.61 PCT year-on-year in 21 years, mainly due to the rise of raw materials and sea freight. 22q1 gross profit margin decreased by 2.41pct to 12.67% year-on-year. During the 21 years, the expense rate of the company was 5.88%, a year-on-year decrease of 6.75pct, and the expense rates of sales / management / R & D / finance were 4.16% / 0.80% / 0.49% / 0.44% respectively, with a year-on-year decrease of -5.32 / - 0.23 / - 0.16 / - 1.03pct respectively. The net interest rate in 21 years was 5.53%, down 1.33pct year-on-year; 22q1 net interest rate was 5.49%, up 1.04pct year-on-year. With the implementation of tariff exemption and tax rebate in the United States in March 22, the profitability of the company is expected to be repaired.
Investment suggestion: as a leading enterprise in the export of Chinese bicycles to the European and American markets, the company's own brand Wuxi Online Offline Communication Information Technology Co.Ltd(300959) channel has been expanded rapidly, and the production capacity expansion has been steadily promoted. In the future, it is expected to achieve steady growth driven by the two wheels of electric bicycle and its own brand. We estimate that Joy Kie Corporation Limited(300994) from 2022 to 2024, the operating revenue will be 4.701 billion yuan, 5.937 billion yuan and 7.241 billion yuan, with a year-on-year increase of 26.73%, 26.28% and 21.97%; The net profit attributable to the parent company was 296 million yuan, 406 million yuan and 515 million yuan, with a year-on-year increase of 44.07%, 37.45% and 26.68%. The corresponding PE was 18.1x, 13.1x and 10.4x, and the investment rating of Buy-A was given.
Risk tip: the risk of intensified industry competition, the risk of sharp fluctuations in raw material prices, and the risk of market development falling short of expectations.
