\u3000\u3 Guocheng Mining Co.Ltd(000688) 696 Chengdu Xgimi Technology Co.Ltd(688696) )
Key investment points
The company released the first quarterly report of 2022:
The income of RMB 1 billion (YoY + 24%), RMB 120 million (YoY + 36%) to the parent and RMB 100 million (YoY + 18%) to be deducted are basically in line with the prospect. The income to the parent is higher than expected, but the deduction is slightly lower than expected. Among them, the non recurring main investment income is 15 million yuan (there are few trading financial assets in 21q1; it has increased significantly since 21q2, bringing investment income).
Q1 deposit equity incentive fee is about 100-20 million, which is deducted by 30-40% after being added back.
Revenue split: high growth of overseas independent brands and Shanghai Aladdin Biochemical Technology Co.Ltd(688179) slowdown
Domestic sales: it is estimated to be about 800900 million, and yoy is about 25%.
Q1 domestic sales revenue performance is relatively weak. We expect the growth rate to be good from January to February, but it fell in March; The main reason is the impact of short-term epidemic in March on Logistics + the release of h3s last year had a high base effect in March. After the release of the company’s new products in April, the revenue is expected to return to good growth.
Export sales: about 130 million yuan (YoY + 30%), of which about 120 million yuan (YoY + 130%) is expected for independent brands, and Shanghai Aladdin Biochemical Technology Co.Ltd(688179) is expected to decline significantly.
Independent brands maintain high growth, which is expected to be mainly due to ① the rapid replenishment of medium and high-end products compared with last year; ② European offline distribution and other channels have been well developed Shanghai Aladdin Biochemical Technology Co.Ltd(688179) decline is expected to be mainly due to the impact of short-term acquisition on the operation, which is expected to return to the high growth track after the completion of the acquisition.
Profit: the gross profit margin is bright and the expense rate is improved
The gross profit margin is 37.8% (+ 3.8pct). The main reasons for the significant increase: ① the proportion of medium and high-end products in the product structure has increased; ② The proportion of Shanghai Aladdin Biochemical Technology Co.Ltd(688179) business similar to ODM mode and with relatively low gross profit margin decreased.
Expense rate: R & D expense rate + 3.3pct year on year. The significant upward trend was mainly due to ① the impact of share based payment and ② the high increase in the number of R & D personnel, from 452 at the end of 20 to 668 at the end of 21, yoy + 48%.
Other rates are relatively stable, but there is also a slight upward trend due to share based payment. The year-on-year sales rate is – 0.57pct, and the financial expenses + 0.03pct.
Net interest rate is 12% (+ 1PCT), deducting non net interest rate of 10.6% (-0.06pct). The increase of net interest rate is mainly due to 1PCT contribution from other income and 1PCT contribution from income from changes in fair value.
Acquire Shanghai Aladdin Biochemical Technology Co.Ltd(688179) , expand the Japanese market
The company plans to purchase Shanghai Aladdin Biochemical Technology Co.Ltd(688179) business previously operated by related party popin for RMB 90-130 million (premium of RMB 50 million) Shanghai Aladdin Biochemical Technology Co.Ltd(688179) 2021: revenue of 295 million yuan and profit of – 18 million yuan (converted at the exchange rate of 0429 yen)
After purchase: Jimi will obtain Shanghai Aladdin Biochemical Technology Co.Ltd(688179) complete brand, intellectual property rights and channels, as well as Shanghai Aladdin Biochemical Technology Co.Ltd(688179) existing Japanese share, and continue to launch products under this brand.
Interpretation: previously, Jimi Shanghai Aladdin Biochemical Technology Co.Ltd(688179) was similar to ODM mode, and its control over pricing and promotion was relatively weak. At present, the company takes the initiative to withdraw Shanghai Aladdin Biochemical Technology Co.Ltd(688179) and switch to its own brand. It is expected to operate more actively and enhance Japan’s competitiveness through price increase + industrial chain advantages.
Investment suggestion: buy rating
The income is weak, mainly due to short-term impact, and the profit forecast will not be adjusted temporarily. It is estimated that the profit of 22-23 years will be 650 million and 920 million yuan, corresponding to 29 and 20 times of PE. Maintain buy rating.
Risk tip: the supply of core parts is in short supply, the industry competition worsens, and the sea is less than expected
