\u3000\u3 China Vanke Co.Ltd(000002) 242 Joyoung Co.Ltd(002242) )
Event: Joyoung Co.Ltd(002242) released the first quarterly report of 2022. The company achieved revenue of 2.33 billion yuan in 2022q1, yoy + 3.8%; Achieved performance of 170 million yuan, yoy-7.7%; The deduction of non performance was 160 million yuan, yoy-2.7%. We believe that the export revenue of Q1 company has increased rapidly, the domestic sales are under slight pressure, the profitability continues to repair, and the single quarter operating performance is in line with expectations.
Q1 single quarter revenue increased slightly year-on-year: 1) domestic sales: the Q1 epidemic in China has repeatedly affected the consumption boom, blocked logistics distribution in some regions, and the consumption of small kitchen appliances is in the doldrums. According to the data of business consultant, the sales volume of Q1 Jiuyang kitchen small household appliances Amoy platform was yoy-17.1%. Considering that other emerging channels perform better than Amoy platform, we infer that the domestic sales revenue of Q1 company decreased by a small single digit year-on-year. 2) In terms of export, Jiuyang continues to benefit from shark Ninja's order transfer. We infer that the export revenue of Jiuyang in Q1 increased by double digits year-on-year. It can be proved that in Q1, Jiuyang sold goods to jsglobal trading HK Limited for us $33.14 million, a year-on-year increase of about 29%. We believe that Jiuyang and sharkninja will give play to the synergy of China's industrial chain, channel marketing and product innovation, and the company's revenue scale is expected to increase steadily.
Q1 single quarter profitability continued to repair: Jiuyang Q1 gross sales difference was -0.1pct year-on-year (Q4 last year was -4.5pct), of which the gross profit margin was -4.8pct year-on-year, the decline continued to narrow, and the profitability was gradually repaired, mainly because the company actively promoted the upgrading of product structure and the improvement of internal operation efficiency. During Q1, the expense rate was - 4.5pct year-on-year, of which the expense rates of sales, management and R & D were - 4.7 / - 0.1 / + 0.3pct year-on-year respectively. The marketing efficiency of the company was improved and the expense control was better. Affected by the decrease of financial management income and investment income of associated enterprises, the proportion of investment income of Jiuyang in Q1 in revenue was -1.0pct year-on-year. Under the comprehensive influence, the net interest rate of Jiuyang in Q1 was 7.1%, with a year-on-year increase of -0.9pct. Looking forward to the follow-up, with the gradual stabilization of raw material prices and the continuous upgrading of product structure, the profitability of the company is expected to gradually recover.
Q1 net operating cash flow increased year-on-year: Jiuyang Q1 net operating cash flow + 500 million yuan, compared with - 180 million yuan in the same period last year. The company's operating cash flow situation improved significantly, mainly because the company's sales collection ability was enhanced, and the cash received from selling goods and providing labor services was + 610 million yuan year-on-year. It can be proved that the balance of notes and accounts receivable in Q1 decreased by 350 million yuan compared with the end of last year, and the cash to cash ratio in Q1 was 136.8% (114.8% in the same period last year). The balance of the company's monetary capital + trading financial assets was 3.06 billion yuan, an increase of 580 million yuan over the end of last year. The company has abundant funds on hand.
Investment suggestion: Jiuyang actively expands product categories, optimizes product structure and lays out high-value offline channels represented by shoppingmall. The company adopts a modern governance structure to fully motivate the management and core employees. We expect the company's future performance is expected to maintain rapid growth. It is estimated that the company's EPS from 2022 to 2024 will be 1.07/1.22/1.40 yuan respectively, maintaining the investment rating of buy-a. the six-month target price is 19.31 yuan, equivalent to 18 times the dynamic P / E ratio in 2022.
Risk tip: the price of raw materials has risen sharply and the competition pattern has deteriorated
