\u3000\u30 Fawer Automotive Parts Limited Company(000030) 06 Chongqing Baiya Sanitary Products Co.Ltd(003006) )
Chongqing Baiya Sanitary Products Co.Ltd(003006) released the first quarterly report of 2022, and achieved a revenue of 432 million yuan in 2022q1, with a year-on-year increase of 6.59%. In 2022, the company plans to continue to consolidate its market position in the existing core provinces and orderly expand the markets of foreign provinces on the basis of combining the development trend of the industry and the advantages of the company’s own products, channels and brands.
Gross profit: the company’s gross profit margin in 2022q1 was 44.76%, a year-on-year decrease of 0.50pcts. On the whole, the gross profit margin of 22q1 has little change and remains stable compared with the whole year of 2021 and 2021q1.
Expense side: the company’s 2022q1 sales / management / R & D / financial expense rates were 21.70% / 4.54% / 3.30% / – 0.14% respectively, with a year-on-year change of + 6.51pcts / + 0.87pcts / – 0.07pcts / + 0.06pcts. Of which:
① the sales expense ratio is at a high point in recent 8 quarters, and its change is mainly due to the increase of the company’s expenses for marketing promotion and employee compensation.
② the change of management expense rate is mainly due to the company’s withdrawal of equity incentive expenses in the current period.
③ the R & D expense rate remained above 3% in 2021 and 2022q1. The company hopes to strengthen R & D and innovation, actively expand and upgrade product series, solve consumer pain points, and promote the sustainable development of the company by expanding and enriching product lines.
Net profit attributable to the parent company: the net profit attributable to the parent company in 2022q1 was 55 million yuan, a year-on-year decrease of 31.00%, and the net interest rate attributable to the parent company was 12.83%, a year-on-year decrease of 6.99pcts; In 2022q1, the company deducted 54 million yuan of non parent net profit, a year-on-year decrease of 29.23%, and deducted 12.59% of non parent net profit, a year-on-year decrease of 6.37pcts. Compared with 21q1, 22q1 has invested more marketing expenses, resulting in a large decline in the net profit attributable to the parent company. On the basis of consolidating the market leading position in the existing core sales area, the company will grasp the development opportunities of e-commerce channels, further strengthen the construction of e-commerce channels, and actively participate in emerging channels such as live e-commerce, group purchase and o2o; At the same time, promote the channel expansion of the company’s brand in foreign provinces in a planned way, and improve brand awareness and market share. We believe that the company’s short-term marketing expenses are put in order to gain more market share in the long term.
Cash flow: the net operating cash flow generated by 2022q1 company was 18 million yuan, compared with 50 million yuan in the same period last year; Net investment cash flow was – 14 million yuan, compared with – 25 million yuan in the same period last year. Profit forecast and Valuation: it is comprehensively estimated that the net profit of the company from 2022 to 2024 will be RMB 273 million / 334 million / 400 million, corresponding to the valuation of 16 / 13 / 11x PE, maintaining the “buy” rating.
Risk tip: raw material price rise risk, business expansion is less than expected, regional expansion is less than expected, online expansion is less than expected, and industry competition intensifies the risk
