\u3000\u3 Bohai Water Industry Co.Ltd(000605) 555 Ningbo Dechang Electrical Machinery Made Co.Ltd(605555) )
The company disclosed the first quarterly report of 2022:
2022q1: the income is 570 million yuan (yoy-7%), 60 million yuan (YoY 2.4%) belongs to the parent, and 50 million yuan (yoy-6%) is deducted;
Revenue side:
Q1 revenue declined slightly year-on-year. In addition to the high base of 21q1, it is expected that the disturbance of the Shanghai epidemic to the supply chain of the Yangtze River Delta will also lead to the failure to confirm the revenue of some orders of the company.
By category:
① the performance of vacuum cleaner OEM is expected to be flat. According to the data of the General Administration of customs, China exported 30.89 million vacuum cleaners in 22q1, yoy-19%. We judge that the company achieved better growth than the industry by increasing the proportion of floor washing machine OEM.
② diversified OEM of small household appliances (including hair care and others): considering the company’s gradual expansion of OEM categories, the growth rate of Q1 is expected to be better than that of vacuum cleaner OEM
③ automobile motor: according to the annual report of the company, 13 fixed-point projects have been realized, and the sales volume of 23 million units in the whole life cycle is expected to achieve high growth in Q1 as scheduled.
Profit side:
Gross profit margin: gross profit margin 19.69%, yoy + 0.4pct, verifying the profit recovery logic after re negotiation;
Expense rate: the expense rate of 22q1 remained stable, with sales, management and R & D – 0.1 / – 0.2 / + 0.2pct to 0.33, 4.52 and 3.89% respectively. Net interest rate: Q1 net interest rate was 10.5%, up 1PCT year on year.
Investment suggestions:
The company is the core supplier of TTI vacuum cleaners. In recent years, it has found the second growth curve through EPS motors and OEM electric tools. We reiterate the company’s investment logic: 1) repair the profit margin of OEM main business; 2) this year is the first year of the company’s second curve.
It is estimated that the sales revenue will reach 3.31, 3.74 and 4.34 billion yuan in 22-24 years, with a year-on-year increase of 16%, 13% and 16%, and the net profit attributable to the parent company will reach 450, 530 and 640 million yuan, with a year-on-year increase of 49%, 19% and 20%., Maintain the “buy” rating.
Risk tips:
The development of automobile business was less than expected, overseas consumption fell more than expected, the cost of raw materials rose sharply again, and the risk of customer concentration
