\u3000\u30 Xuchang Ketop Testing Research Institute Co.Ltd(003008) 24 Shenzhen Crastal Technology Co.Ltd(300824) )
Event: Shenzhen Crastal Technology Co.Ltd(300824) released the first quarterly report of 2022. The company achieved revenue of 180 million yuan in Q1, yoy + 4.5%; Achieved performance of RMB 20 million, yoy-42.5%. We believe that Beiding continues to push through the old and bring forth the new, and Q1 independent brands maintain rapid growth; The company's investment in talent attraction and cultivation, brand promotion and other expenses remains high, resulting in short-term pressure on Q1 performance. It is expected that the effectiveness of the company's expense investment will be released and the profitability will rise.
The growth rate of OEM's revenue in Q1 quarter was slightly lower than that in Q1 quarter, and the revenue of OEM's revenue in Q1 quarter was slightly lower than that in Q1 quarter. This is mainly due to the repeated impact of the Chinese epidemic on logistics distribution in March, the pressure on the income of independent brands in China, the weakening of overseas demand and the shortage of shipping capacity, resulting in the decline of OEM income. The income of Q1 Beiding independent brands and OEM / ODM is yoy + 15.5% / - 24.3%. Beiding continued to expand its categories and scenes, and improved its own brand product matrix. The income of Q1's own brand electrical appliances, peripheral supplies and food materials was yoy + 6.8% / + 40.2%. Q1 company launched products such as "enamel pot pig powder series", "hamster pot" and "spring cover thermos cup" around the cooking and drinking scenes, as well as tea dietary materials such as "cassia seed chrysanthemum tea" and "sour jujube renganmai tea", which continued to win the favor of consumers and promote the continuous high-speed growth of the income of surrounding products and food materials. It is worth noting that Q1 Beiding's overseas independent brand revenue is yoy + 76.4%. The company actively promotes the brand strategy of going to sea, and the overseas business is improved at a high speed. We believe that the company's products are positioned as high-end products with high appearance value, and are expected to continue to be favored by quality consumers. As the company continues to promote the development of domestic and foreign independent brands, Beiding's revenue will continue to grow steadily in the future.
The gross profit margin of Q1 remained stable and the net profit margin decreased year-on-year: the gross profit margin of Beiding Q1 was + 0.5pct year-on-year, and the gross profit margin was basically stable, mainly because the company actively prepared goods in the early stage and continuously optimized the product structure. The proportion of independent brand revenue with high gross profit margin in Q1 increased by 7.6pct to 79.9% year-on-year. During Q1 Beiding, the cost rate was + 9.1pct year-on-year, of which the cost rates of sales, management and R & D were + 4.7 / + 2.4 / + 1.6pct year-on-year respectively, which was mainly due to the increase in the cost of the company's online mall and the company's efforts to attract and cultivate talents, brand promotion and digital construction. In addition, Q1 company's securities investment loss increased, resulting in a year-on-year ratio of investment income to revenue of -2.3pct, which also had an adverse impact on profitability. Under the comprehensive influence, the net interest rate of Q1 company was -7.4pct year-on-year. We believe that the company continues to improve production efficiency and optimize product structure. With the gradual realization of the effect of early-stage cost investment, the profitability is expected to improve.
Q1 net operating cash flow decreased year-on-year: Q1 net operating cash flow of Beiding + 10 million yuan, yoy-51.6%. The net operating cash flow of Q1 Beiding decreased, mainly due to the increase of cash expenditure caused by the attraction and cultivation of talents in Beiding, and the increase of goods preparation in the previous year. Part of the payment for goods was paid in the current period. The cash paid to and for employees in Q1 Beiding was yoy + 16.6%, and the cash paid for purchasing goods and receiving labor services was yoy + 20.0%. At the end of Q1, the balance of contract liabilities of the company was yoy + 31.0%, indicating that the channel providers had a positive expectation of subsequent consumer demand. With the subsequent expansion of the company's sales scale and the enhancement of sales collection ability, the company's operating cash flow situation is expected to improve.
Investment suggestion: Beiding products are positioned as high-end products and are expected to benefit from the upgrading of Chinese consumption. The company continues to optimize the product structure, expand new categories, promote independent brands to go to sea, and expand all channel user contacts, which is expected to achieve sustained and rapid growth in business performance. We expect that the company's EPS from 2022 to 2024 will be 0.35/0.45/0.57 yuan, maintain the investment rating of Buy-A, and the six-month target price will be 15.61 yuan, equivalent to 45 times the dynamic P / E ratio in 2022.
Risk tip: industry competition intensifies, the price of raw materials rises sharply, and the RMB appreciates sharply
