\u3000\u30 Beijing Zznode Technologies Co.Ltd(003007) 29 Loctek Ergonomic Technology Corp(300729) )
Event:
The company released the first quarterly report of 2022: the revenue in the first quarter of 2022 was 764 million yuan, a year-on-year increase of 15.83%; The net profit attributable to the parent company was 18 million yuan, a year-on-year decrease of 43.64%; The net profit deducted from non parent company was -03 million yuan, a year-on-year decrease of – 109.66%; The basic earnings per share is 0.08 yuan.
Guoyuan view:
Q1 revenue maintained steady growth, and adverse factors disturbed the performance of net profit
With the marginal increase of market penetration of ergonomic products at home and abroad and the construction of Wuxi Online Offline Communication Information Technology Co.Ltd(300959) diversified channels, the sales scale of the company continues to expand, but the slowdown of overseas demand and the large base in the same period still have an impact on the income growth. The overall revenue of the company has maintained a steady growth, realizing a revenue of 764 million yuan, a year-on-year increase of 15.83% and a month on month decrease of 0.98% compared with 2021q4; Due to the impact of macro adverse factors such as Q1 sea freight fluctuation and RMB appreciation, as well as the company’s increased investment in product R & D and channel marketing, the profit side of the company was under pressure, and the net profit attributable to the parent company was 18 million yuan, a year-on-year decrease of 43.64% and a month-on-month decrease of 70.51% compared with 2021q4. In terms of channel construction, the company has formed a sales model with overseas business dominated by online e-commerce and coordinated development of Wuxi Online Offline Communication Information Technology Co.Ltd(300959) c-end of Chinese business, and continuously strengthened the channel construction of independent stations and independent brands; In terms of overseas warehouse project, the company actively promotes the project construction. At present, the utilization rate of warehouse has reached a high level, and the cumulative service scale of customers exceeds 300; In addition, the company plans to invest in the construction of container ships, which will further improve the transportation efficiency and inventory turnover after being put into operation in the future.
High ocean freight + RMB appreciation put short-term pressure on profitability, and the cost side was basically stable
22q1 sea freight prices remained high, adding to the great pressure of RMB appreciation, and the profitability of the company was under pressure. Q1 gross profit margin decreased by 2.15pcts to 39.73% year-on-year and 2.32pcts month on month; The comprehensive net interest rate decreased by 2.48 PCTs to 2.36% year-on-year and 5.54 PCTs month on month. In terms of expenses during the period, the sales expense rate increased by 3.05pcts to 28.22% year-on-year, which was caused by the increase of marketing expenses due to the construction of independent channels of independent stations. The management expense rate decreased by 0.42pcts to 4.73% year-on-year, the financial expense rate increased by 0.97pcts to 2.69%, and the R & D expense rate decreased by 0.17pcts to 3.93%.
The improvement of overseas layout, quality and efficiency, and the improvement of exchange rate and other factors are expected to help improve profitability
The company actively promotes the development of overseas public warehouse projects and strengthens the resource allocation of its core location. At present, the company has built 15 overseas warehouses in the world, with a total storage area of 260000 square meters. In addition, the company plans to invest in the construction of container ships, which are expected to be delivered in 2023. After the ships are put into operation, it is expected to significantly reduce the transportation cost, shorten the delivery cycle, promote the integrated operation of the company’s public overseas warehouse business and first voyage shipping, help Chinese small and medium-sized brands go to sea, and at the same time, it will improve the quality, efficiency and performance of the company. In recent years, the company has continuously increased marketing efforts and R & D investment to improve brand value and product power. In the future, with the decline of high sea freight, the marginal improvement of the negative impact of superimposed exchange rate, and the gradual implementation of cost reduction and efficiency improvement measures within the company, the profitability of the company is expected to be marginal repaired.
Investment advice and profit forecast
The company is a leader in ergonomic health home furnishings. With the marginal improvement of exchange rate, sea freight and raw material prices, the performance of overseas warehouse projects will be released in the future, the operating efficiency may be improved after the landing of shipbuilding projects, as well as the improvement of diversified channel layout and product power, the medium and long-term growth logic of the company will not change. It is estimated that the company will achieve revenue of RMB 3.948/53.31/6.878 billion, net profit attributable to parent company of RMB 258362/473 million, EPS of RMB 1.17/1.64/2.14 and corresponding PE of 14.96/10.67/8.16 times respectively from 2022 to 2024, maintaining the “buy” rating.
Risk tips
The sea freight price exceeds the expectation; Exchange rate fluctuations exceed expectations; The sales volume of new products is lower than expected; Overseas warehouse construction was less than expected.
