Biyi shares (603215)
Event:
On April 28, 2022, Biyi issued the first quarterly report of 2022. In 2022q1, the company realized an operating revenue of 368 million yuan (+ 13.45%), and a net profit attributable to the parent company of 25 million yuan (+ 11.31%).
Key investment points:
Riding the east wind of the air fryer industry, the revenue has achieved rapid growth. 1) Overseas market: the revenue of 2022q1 company grows rapidly, or the epidemic situation catalyzes the increase of overseas market demand, and the orders of Philips and other major customers increase to release dividends; 2) Chinese market: according to the market data of magic mirror, the sales volume of air fryers on tmall Taobao, jd.com and Suning e-commerce platforms in 2022q1 is 2.129 billion yuan (+ 139%). The company is OEM for Zhejiang Supor Co.Ltd(002032) , bear, etc. the development of independent brands has started, or will continue to benefit from the high demand for domestic sales.
The gross profit margin is under pressure in the short term, and the cost side is well controlled. 1) Gross profit margin: the gross profit margin of 2022q1 is 12.92% (- 2.14pct), which is mainly due to the high price of raw materials. According to the new tariff exemption list released by the U.S. trade representative office in March, the company’s exports of air fryers and other products are expected to benefit from October 12, 2021 to December 31, 2022, or will drive the growth of profit side; 2) Net profit margin: the net profit margin of 2022q1 is 6.93% (-0.13pct), with a decrease less than the gross profit margin. The main reason is that the cost side is well controlled. The sales / management / R & D cost rate of 2022q1 is 1.00% / 2.79% / 2.74% respectively, with a year-on-year increase of -0.47 / + 0.14 / – 0.94pct respectively.
Actively expand emerging channels and explore the construction of independent brands. From March 6, 2022, the first short video was released through new channels such as Tiktok e-commerce, to April 28, 2022, the Tiktok account of Biyi flagship store released 90+ works, 162000 + broadcasts and 80+ live broadcasts. 4400 + fans have been harvested in nearly one and a half months, laying a user foundation for private domain traffic operation, and it is expected to build the second growth curve of the company.
The air fryer industry is booming, and the cost side is well controlled. New channels help start the construction of independent brands and maintain the “buy” rating. We expect that the net profit attributable to the parent company from 2022 to 2024 will be 139 / 179 / 234 million yuan, corresponding to EPS of 0.74/0.96/1.25 yuan, and the current share price corresponding to PE of 20.88/16.18/12.39 yuan.
Risk tips: price fluctuation of main raw materials, exchange rate fluctuation, intensified market competition, less than expected development of new channels, repeated covid-19 epidemic, etc.
