\u3000\u30 Xuchang Ketop Testing Research Institute Co.Ltd(003008) 24 Shenzhen Crastal Technology Co.Ltd(300824) )
Event: the company’s 22q1 revenue was 183 million yuan, a year-on-year increase of 4.48%, and the net profit attributable to the parent company was 16.46 million yuan, a year-on-year increase of – 42.49%. The company’s revenue performance was lower than expected.
Revenue side: the overall pressure is on, and the growth rate of non electric products is better
In terms of business, the revenue of 22q1 Beiding private brand was 146 million yuan, a year-on-year increase of + 15.52%, and the OEM / ODM business was 37 million yuan, a year-on-year increase of – 24.32%. The proportion of independent brands has continued to increase. Since March, the epidemic has slowed its growth rate by 21q4 (28.3%) month on month, while the growth of OEM business is under pressure due to the weakening of overseas demand. In Beiding private brand business:
In terms of products, the income of electrical appliance 22q1 was 100 million yuan, with a year-on-year increase of + 6.81%. According to the business consultant data, the growth rate of Q1 Beiding electric kettle and electric steamer was better, with a year-on-year increase of + 35% / + 22% respectively. The revenue of peripheral supplies and food materials was 46 million yuan, up + 40.22% year-on-year. The rapid growth of peripheral supplies and food materials made a major contribution to the company’s revenue. The company launched new pot products in 22q1, such as “enamel pot pig powder series”, “hamster pot”, and new food materials, such as “Cassia chrysanthemum tea”, “sour jujube renganmai tea”, “five black tea” “Black medlar rose tea” and other tea drinks contributed to the growth of supplies and food materials. In terms of regions, 22q1 China achieved revenue of 129 million yuan, a year-on-year increase of + 10.5%, and overseas revenue of 17 million yuan, a year-on-year increase of + 76.45%.
Profit side: high cost and lower profitability month on month
In 2022, the gross profit margin of Q1 company was 48.34%, year-on-year + 0.5pct, month on month q4-1.73pct, and the net profit margin was 9.01%, year-on-year -7.36pct. After the price of bulk raw materials fell in 21q4, 22q1 rebounded again, resulting in pressure on the company’s gross profit margin month on month. The company’s Q1 sales, management, R & D and financial expense rates in 2022 were 26.31%, 10.74%, 4.34% and 0.52% respectively, with a year-on-year increase of + 4.73, + 2.36, + 1.57 and + 0.44pct. The increase of sales expense rate is mainly due to the increase of brand promotion investment, the increase of management expense rate is mainly due to the increase of talent attraction and cultivation cost, and the increase of R & D expense rate is mainly due to the increase of talent attraction and cultivation and R & D project cost.
In terms of cash flow: the net cash flow generated from the company’s operating activities in 2021 was 4.314 billion yuan, a year-on-year increase of – 27.65%, including 40.721 billion yuan in cash paid for purchasing goods and receiving labor services, a year-on-year increase of + 75.22%; Among them, the net cash flow from Q4 operating activities in 2021 was 820 million yuan, a year-on-year increase of – 55.77%, of which the cash paid for purchasing goods and receiving labor services was 15.01 billion yuan, a year-on-year increase of + 157.68%. The net cash flow generated from the company’s Q1 operating activities in 2022 was 07 million yuan, with a year-on-year increase of – 51.64%, mainly due to the increase in cash paid to and for employees (year-on-year + 16.6%) due to the pressure of sales revenue and talent attraction and cultivation, the increase in goods preparation in the previous year, and the payment for goods in the current period (year-on-year increase of ending inventory + 59.36%).
Investment suggestion: the company’s revenue growth of non electric products and overseas private brands is bright, and the profit level of non electric products is high. 22q1 is subject to multiple adverse factors such as the impact of the epidemic, logistics and high bulk raw materials. Looking forward to the future, if the margin of the above short-term influencing factors improves, the company’s revenue performance is expected to achieve greater resilience. We expect the net profit of 22-24 years to be 119 / 147 / 190 million yuan (122, 152 and 194 million yuan before 22-24 years), and the corresponding dynamic valuation is 35.6x/29x/22.3x, maintaining the “overweight” rating.
Risk tip: the sales of private brands are less than expected, the export orders are less than expected, and the profit decline is caused by the rise of raw material price and freight
