\u3000\u30 Beijing Jingyeda Technology Co.Ltd(003005) 77 Anhui Korrun Co.Ltd(300577) )
On April 26, 2022, the company released the annual report of 2021 and the quarterly report of Q1 in 2022. In 2021, the company achieved a revenue of 2.289 billion yuan, a year-on-year increase of 17.76%, and the net profit attributable to the parent company was 180 million yuan, a year-on-year increase of 131.03%. In 2022q1, the company realized a revenue of 612 million yuan, a year-on-year increase of 35.56%, and the net profit attributable to the parent company was 47 million yuan, a year-on-year increase of 2.78%. The company performed well and maintained the buy rating.
Key points supporting rating
The high-quality customers of Tob business are stable, the expansion of new customers has achieved rapid growth, and the growth of TOC business is relatively stable. In 2021, the company achieved a revenue of 2.289 billion yuan, a year-on-year increase of 17.76%, and a profit of 180 million yuan, a year-on-year increase of 131.03%. At the tob end, the company continued to consolidate its cooperative relations with high-quality customers such as Nike, Decathlon and VF, and actively expanded new customers to become a bag supplier of well-known brands such as puma, JanSport, Dickies and Li Ning, driving revenue growth of 24.02% to 1.464 billion yuan. At the TOC end, the company focused on expanding Amazon channels in 2021, focusing on the characteristics of target customer groups, actively expanding new products, continuously enhancing brand effect, and driving revenue growth of 3.19% to 756 million yuan. Among them, the growth of distribution channels (mainly Xiaomi) slowed down, with a year-on-year decrease of 21.36% to 409 million yuan; “90 points” brand benefited from the growth of Amazon channel and realized revenue of 347 million yuan, a year-on-year increase of 63.14%.
In 2021, the company increased the investment in its own brand Amazon platform, resulting in an increase in the sales expense rate and a significant increase in the net profit margin. In 2021, under the background of overseas epidemic, the company’s production cost and logistics cost increased, resulting in a decrease in gross profit margin of 1.90pct to 26.58%. In 2021, the company increased its investment in the sales expenses of its own brand on Amazon platform, and the sales expense rate increased by 0.65pct to 11.76%. In the future, the company will adopt the cost reduction strategy for TOC business, and the sales expense rate is expected to fall. The company paid attention to expense control, and the management expense rate decreased by 2.04pct to 10.18%. Overall, the net interest rate increased by 3.86pct to 7.87%.
The tob business of 2022q1 company has driven the high growth of overall income, and the long-term development can be expected. In 2022q1, the revenue was 612 million yuan, with a year-on-year increase of 35.56%. We expect tob business revenue to grow by more than 40%, mainly due to the increase in orders from high-quality customers such as Nike, VF and puma. TOC business grew steadily, with a growth rate of about 10%. Throughout the year, the company’s tob business is expected to maintain steady growth under the background of overseas supply chain recovery, relying on new customers to increase the volume of customers and continue to expand new customers.
Valuation
Considering the impact of the epidemic on offline retail, the earnings per share from 2022 to 2024 were reduced to 0.89 yuan, 1.14 yuan and 1.38 yuan / share respectively (the original forecast data from 2022 to 23 were 1.27 yuan and 1.60 yuan / share); The P / E ratio was 15 times, 12 times and 10 times respectively, maintaining the buy rating.
