Company 9 (689009)
Event: the company released the first quarterly report of 2022.
The direct sales revenue of independent brand & to B increased rapidly, and the revenue end of Q1 increased slightly
In 2022q1, the company achieved a revenue of 1.917 billion yuan, a year-on-year increase of + 7.80%. Under the background of the impact of the epidemic on overseas shipments, the revenue side was slightly lower than our expectation, mainly due to the conflict between Russia and Ukraine, the relevant business in Russia was affected to a certain extent, and the revenue of Xiaomi channel decreased significantly. If divided by sales channels: 1) independent brand distribution: 2022q1 achieved a total revenue of 980 million yuan, a year-on-year increase of + 51% (including 174000 independent brand retail scooters, a revenue of 360 million yuan, a year-on-year increase of + 30%; 91000 electric two wheeled vehicles, a revenue of 260 million yuan, a year-on-year increase of + 27%; 3474 all terrain vehicles, a revenue of 200 million yuan, a year-on-year increase of 8 times). 2) Direct sales of to B products: in 2022q1, the revenue was 650 million yuan, a year-on-year increase of + 81%. 3) Distribution of Xiaomi customized products: in 2022q1, the revenue was 290 million yuan, a year-on-year decrease of 62%, suppressing the growth momentum of the revenue side. In 2022, with the rapid growth of new businesses such as electric two wheeled vehicles, all terrain vehicles, mowing Siasun Robot&Automation Co.Ltd(300024) and so on, the revenue side of the company is expected to maintain rapid growth.
During the period, the expense rate decreased & the income tax increased significantly, and the profitability of Q1 increased slightly
In 2022q1, the company realized a net profit attributable to the parent company of 38 million yuan, a year-on-year increase of 51.32%, and deducted a net profit not attributable to the parent company of 23 million yuan, a year-on-year increase of 14.76%, lower than our expectation. In 2022q1, the net profit margin of sales was 1.98%, with a year-on-year increase of + 0.55pct, and the net profit margin deducted from non parent company was 1.17%, with a year-on-year increase of + 0.07pct, with a slight increase in profitability. Specifically: 1) gross profit side: the gross profit margin of 2022q1 company’s sales was 22.02%, with a year-on-year increase of + 0.59pct. We judge that it is mainly due to the decrease in the proportion of Xiaomi channel revenue with low gross profit margin. 2) Expense side: during 2022q1, the expense rate was 18.95%, with a year-on-year increase of -1.19pct, which was the main reason for the slight increase in profitability. Among them, the expense rates of sales, management, R & D and finance were -2.61pct, + 0.74pct, + 0.31pct and + 0.36pct respectively year-on-year. The sales expense rate was the main driving force for the decline of expense rate during the period. We judged that it was mainly because 2022 had not entered the stage of large-scale launch; The financial expense rate has increased, mainly due to exchange losses. 3) In addition, the company accrued income tax of 37.61 million yuan in 2022q1, compared with – 3.19 million yuan in 2021q1, which played a certain role in suppressing the improvement of profitability.
New products continue to land, and the company’s growth space continues to open
While consolidating the traditional advantages such as electric scooters and balance vehicles, the company continues to layout new products and open up growth space: ① two wheeled vehicles are a large natural market. The annual demand for electric two wheeled vehicles in China is more than 40 million, and the user’s demand for intelligent electric two wheeled vehicles is gradually increasing. The company has more than 1700 exclusive stores in China, covering 600 + cities. In addition, the company also releases products for overseas markets, which is expected to achieve rapid growth; ② The global all terrain vehicle is a 100 billion yuan market. The company has formed a certain scale of sales and further opened up the growth space; ③ The company laid out the mowing Siasun Robot&Automation Co.Ltd(300024) industry. In September 2021, it released new products of intelligent mowing Siasun Robot&Automation Co.Ltd(300024) , and the service Siasun Robot&Automation Co.Ltd(300024) sector also continued to land.
Profit forecast and investment rating: considering the impact of the epidemic, we expect the net profit attributable to the parent company in 20222024 to be 802, 1297 and 1813 (original values 859, 1329 and 1849) million yuan respectively, and the corresponding dynamic PE of the current stock price is 33, 20 and 15 times respectively, maintaining the “buy” rating.
Risk tip: the promotion of new products is not as expected, the sales volume in overseas markets is declining, the profitability is declining, etc
