\u3000\u3 Shengda Resources Co.Ltd(000603) 515 Opple Lighting Co.Ltd(603515) )
Opple Lighting Co.Ltd(603515) release the annual report of 2021 and the first quarterly report of 2022. The company achieved a revenue of 8.85 billion yuan in 2021, yoy + 11.00%; The net profit attributable to the parent company was 910 million yuan, yoy + 13.44%. 2022q1 achieved revenue of 1.46 billion yuan, yoy-17.1%; The net profit attributable to the parent company is 70 million yuan, yoy-50.88%.
Key points supporting rating
The revenue in 2021 is in line with expectations, and the company continues to make strategic transformation. In 2021, the company achieved a revenue of 8.85 billion yuan, yoy + 11.00%, of which 21q4 achieved a revenue of 2.69 billion yuan, yoy-1.87%, an increase of 4% compared with 19q4. The company continued its transformation and upgrading strategy. In 2021, the growth rate of business license and overseas channels was fast, and the company continued to build benchmark projects in business license business. The overseas business made a breakthrough in the European market, and explored overseas e-commerce channels at the same time; Furniture and e-commerce channels grew steadily. Affected by the epidemic and logistics suspension, the company’s 22q1 revenue yoy-17%. According to CSA data, in 2021, the output value of the downstream application link of LED lighting was 655.2 billion yuan, yoy + 10%, of which general lighting reached 303.4 billion yuan, yoy + 11%, and the industry CR10 = 9.5% in 2020. In the long run, there is still room to improve the market concentration of general lighting, and the company, as a leader of general lighting, is expected to continue to benefit.
The price of raw materials is high, and the company’s 22q1 performance is under pressure in the short term. The gross profit margin of 2021q4 is 24.9%, year-on-year -13.2pct, the net profit margin is 10.6%, year-on-year -0.04pct, and the sales expense rate of 21q4 is -11.6pct year-on-year. The price of raw materials is high, and the cost pressure increases. At the same time, the accounting standards are adjusted, and the freight is adjusted from the sales expense account to the operating cost account, resulting in the pressure on the gross profit margin. In 2022q1, the gross profit margin was 31.4%, year-on-year -5.9pct, and the net profit margin was 4.4%, year-on-year -3.3pct. The company’s performance is still under short-term pressure from the high price of raw materials. The company continues to promote the internal cost reduction and efficiency increase and the use of overseas hedging, and the gross profit margin is expected to continue to recover in the second half of the year.
Profit forecast
It is estimated that the company’s revenue from 2022 to 2024 will be 9.3/10.4/11.7 billion yuan and net profit will be 1.0/11/1.3 billion yuan, corresponding to pe12x / 10x / 9x from 2022 to 2024, maintaining the buy rating.
Main risks of rating
The cost of raw materials has risen sharply, the epidemic in the Yangtze River Delta has developed beyond expectations, and the industry competition has intensified significantly.
