\u3000\u30 Xuchang Ketop Testing Research Institute Co.Ltd(003008) 24 Shenzhen Crastal Technology Co.Ltd(300824) )
Key investment points
Performance summary: the company released the first quarterly report of 2022, and achieved a revenue of 180 million yuan in 2022q1, an increase of 4.5% year-on-year; The net profit attributable to the parent company was 16.46 million yuan, a year-on-year decrease of 42.5%.
Q1 revenue growth slowed. In terms of business, Q1’s independent brand business achieved a revenue of 150 million yuan, a year-on-year increase of 15.5%. In the Chinese market, from January to February 2022, the business operation of the company’s independent brand in China was relatively stable. Since March, the epidemic in China has been repeated, logistics and express delivery in many regions have been blocked, sales have been sluggish, and the business income of independent brands in China has been under pressure. Beiding China achieved an operating revenue of 130 million yuan, an increase of 10.5% over the same period last year. While steadily promoting Beiding’s business in China, the company actively expanded the overseas market, achieved rapid growth of Beiding brand’s overseas business, and achieved an operating revenue of 16.96 million yuan, an increase of 76.5% over the same period last year. In terms of OEM business, affected by the weakening of overseas demand, the company’s OEM / ODM business revenue was introduced year-on-year. In Q1, the operating revenue was 36.65 million yuan, a decrease of 24.3% over the same period last year.
Repeated impact of the epidemic, short-term profits under pressure. The company’s comprehensive gross profit margin was 48.3%, a year-on-year increase of 0.5pp. In terms of separate split, under the influence of rising raw material prices, the gross profit margin of the company’s independent brand business and OEM business has declined. However, the proportion of revenue of independent brand business benefiting from high profitability increased, and the company’s gross profit margin improved year-on-year. In terms of expense rate, the company’s sales / management / Finance / R & D expense rate was 26.3% / 10.7% / 0.5% / 4.3% respectively, with a year-on-year change of 4.7pp / – 0.4pp/0.4pp/1.6pp respectively. The company has maintained a high cost investment in talent attraction and cultivation, brand promotion, warehouse leasing, digital construction and other aspects, but under the influence of the epidemic, the logistics is limited, the growth rate of the company’s independent brand slows down, and the company’s cost rate has increased during the reporting period. Overall, the company’s net interest rate was 9.0%, a year-on-year decrease of 7.4pp.
Profit forecast and investment suggestions. The company has obvious middle and high-end advantages and is expected to fully benefit from the upgrading of Chinese consumption. The epidemic has affected the company’s short-term operation and is under pressure. With the mitigation of external factors, the company has responded actively and optimized the cost rate of improving operation efficiency. It is expected that the company’s performance will improve steadily. We expect the company’s EPS to be 0.37/0.47/0.59 yuan from 2022 to 2024 respectively, maintaining the “buy” rating.
Risk warning: the price of raw materials or the risk of large fluctuations, and the risk of repeated outbreaks
