\u3000\u30 Beijing Zznode Technologies Co.Ltd(003007) 29 Loctek Ergonomic Technology Corp(300729) )
Event: Loctek Ergonomic Technology Corp(300729) released the annual report of 2021 and the first quarterly report of 2022. In 2021, the company achieved an operating revenue of 2.871 billion yuan, a year-on-year increase of 47.95%; The net profit attributable to the parent company was 185 million yuan, a year-on-year decrease of 14.93%; The net profit attributable to the parent company after deduction was 109 million yuan, a year-on-year decrease of 40.81%. In 2021q4, the company realized an operating revenue of 771 million yuan, a year-on-year increase of 6.88%; The net profit attributable to the parent company was 61 million yuan, a year-on-year increase of 9.80%; The net profit attributable to the parent company after deducting non-profit was 13 million yuan, a year-on-year decrease of 69.94%.
In addition, in 2022q1, the company achieved an operating revenue of 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 attributable to the parent company after deduction of non-profit was -03 million yuan, a year-on-year decrease of 109.66%.
Ergonomic workstation contributes to the main revenue and continues to build its own brand
Focusing on ergonomics, the company continued to focus on healthy smart office and smart home products with linear drive as the core, continuously increased R & D investment, continuously expanded the innovative application of linear drive technology in healthy office, smart home and other scenes, and improved the added value of products. In 2021, ergonomic workstations contributed revenue of 2.163 billion yuan, with a year-on-year increase of 51.52%, accounting for 75.34%, with a year-on-year increase of 8.17 PCT. At the same time, in 2021, the company will strengthen the construction of brand strength, push through the old and bring forth the new on the product side, and empower it with higher quality products. On the marketing side, the company innovated its marketing methods. The "he classmate" creative content marketing event dominated the list for many days, and the company has accumulated more than 100 million exposure. The sales volume of Amazon's "flexpop" brand accounted for 64.1% of the total sales volume, and the sales revenue of Amazon's "flexpop" brand accounted for 66.1% of the total sales revenue in 2021. In 2022q1, the company achieved an operating revenue of 764 million yuan, a year-on-year increase of 15.83%, and the market share of independent brands further increased.
The growth rate of independent stations is bright, and the layout of overseas warehouses continues to expand
In 2021, the company's cross-border e-commerce revenue increased by 38.76% year-on-year. The cross-border e-commerce was dominated by independent stations and Amazon, realizing revenue of 527 million yuan and 837 million yuan respectively, with a year-on-year increase of 89.19% and 16.19%. Independent stations have higher per capita consumption, faster sales growth and bright growth. Meanwhile, the company's cross-border e-commerce public overseas warehouse innovation service complex project is developing well. By the end of 2021, there were 15 warehouses in the world, with a delivered area of 260000 square meters, and 53000 square meters of warehouses in the East and west of the United States under construction and expansion. The company has fully provided cross-border e-commerce logistics one-stop services, including overseas warehousing, tail delivery, head-on shipping and other cross-border e-commerce logistics services to small and medium-sized foreign trade enterprises. It has served more than 300 customers, which can help the company's cross-border e-commerce. With the continuous expansion of the scale, the company's bargaining power is expected to improve, The cost is expected to decline.
Sea freight and exchange rate put short-term pressure on performance, and cost control was basically stable
In terms of profitability, the company's comprehensive gross profit margin in 2021 was 39.72%, down 7.02pct year-on-year, mainly due to the increase in costs caused by the increase in the proportion of overseas warehouse business, the continuous rise in sea freight and the continuous high price of raw materials. In 2022q1, the sea freight remained high, superimposed on the appreciation of RMB, and the company's comprehensive gross profit margin was 39.73%, down 2.14pct year-on-year.
In terms of period expenses, in 2021, the company's period expense rate was 34.76%, a year-on-year decrease of 0.24pct, and the sales / management / R & D / financial expense rates were 24.04% / 3.81% / 4.52% / 2.38%, respectively -0.13 / - 0.93 / + 0.16 / + 0.66pct. Among them, the increase of financial expenses is mainly due to the increase of interest expenses of lease liabilities and convertible bonds, and the increase of handling charges with the increase of income of overseas e-commerce independent stations. During 2022q1, the expense rate of the company was 39.56%, with a year-on-year increase of 3.44pct, and the expense rates of sales / management / R & D / finance were 28.22% / 4.73% / 3.93% / 2.69%, with a year-on-year increase of + 3.05 / - 0.42 / - 0.17 / + 0.97pct respectively. Under the comprehensive influence, the net interest rate of the company in 21 years was 6.42%, down 4.74pct year-on-year; The net profit margin of 2022q1 was 2.36%, down 2.48pct year-on-year.
Investment suggestion: Loctek Ergonomic Technology Corp(300729) as the leader of ergonomic healthy home furnishings, we will continue to promote R & D, expand new products and build our own brands. The growth potential of cross-border e-commerce channels is strong. With the expansion of the company's overseas warehouse and the landing of self built containers, the profit is expected to improve marginally. We estimate that the operating revenue of Loctek Ergonomic Technology Corp(300729) 20222024 will be RMB 3.918 billion, RMB 5.098 billion and RMB 6.321 billion, with a year-on-year increase of 36.45%, 30.12% and 23.99%; The net profit attributable to the parent company was 250 million yuan, 361 million yuan and 435 million yuan, with a year-on-year increase of 35.36%, 44.54% and 20.36%. The corresponding PE was 12.7x, 8.8x and 7.3x, giving a Buy-A investment rating.
Risk warning: sea freight fluctuation risk; Price fluctuation risk of raw materials; Exchange rate fluctuation risk; Less risk than expected demand
