\u3000\u3 Shengda Resources Co.Ltd(000603) 408 Runner(Xiamen) Corp(603408) )
Event: Runner(Xiamen) Corp(603408) released the annual report of 2021 and the first quarterly report of 2022. In 2021, the company realized an operating revenue of 4.712 billion yuan, a year-on-year increase of 22.87%; The net profit attributable to the parent company was 376 million yuan, a year-on-year increase of 3.11%; The net profit attributable to the parent company after deduction was 324 million yuan, a year-on-year increase of 6.87%. In 2021q4, the company realized an operating revenue of 1.212 billion yuan, a year-on-year increase of 5.07%; The net profit attributable to the parent company was 75 million yuan, a year-on-year decrease of 27.96%; The net profit attributable to the parent company after deducting non-profit was 56 million yuan, a year-on-year decrease of 24.63%.
In addition, in 2022q1, the company achieved an operating revenue of 1.138 billion yuan, a year-on-year increase of 6.67%; The net profit attributable to the parent company was 96 million yuan, a year-on-year decrease of 7.41%; The net profit attributable to the parent company after deducting non-profit was 85 million yuan, a year-on-year decrease of 10.89%.
Diversified layout, healthy industrial ecology, good and stable cooperation relationship with key customers
By category, in 21 years, the income of kitchen and bathroom products, water purification products, other household products and non household products reached 32.22/5.94/6.71/189 million yuan respectively, with a year-on-year increase of 31.20% / 14.73% / 2.46% / 5.08%. Relying on the advantages of technology and high-end manufacturing, the company has formed an industrial ecology covering kitchen and bathroom, water purification, livable air, health care, manufacturing services and technical services, and gradually built a diversified development pattern of “healthy home” life “,” commercial “Engineering”, “intelligent manufacturing” customization “. The company’s main customers include Kohler, Musco, Moen, Jiebi, 3M, kangligen, Lizhu group, Magna, Ferguson, Haier Smart Home Co.Ltd(600690) , Midea and other international well-known enterprises. The long-term and stable customer relationship has enabled the company to obtain continuous high-quality orders, gradually improve the influence of the company’s brand, and lay a foundation for expanding other customers and markets. The company gives full play to its own technical advantages, shortens the R & D and design cycle, actively responds to customer product requirements and timely meets the market development trend. As of December 31, 2021, the company has 2262 valid authorized patents abroad, including 253 invention patents and 1752 utility model patents.
Continue to cultivate overseas markets and speed up the development of Chinese markets
In terms of regions, 1) in terms of overseas markets, the operating revenue of overseas markets in 2021 was 3.678 billion yuan, a year-on-year increase of 24.32%. In 2021, the company accelerated the development of new products and new customers, and continued to improve the operation capacity of Jianlin, an overseas manufacturing base in Thailand. With the rising demand for overseas household products and the impact of the epidemic on the supply chain in Southeast Asia, customers transfer orders to China, the company’s overseas business has achieved steady expansion. 2) In the Chinese market, the operating revenue of the Chinese market in 2021 was 998 million yuan, a year-on-year increase of 17.45%. The company increased strategic investment in the Chinese market, actively accelerated the development of new markets, new organizations and new business forms, promoted the transformation and upgrading of marketing channels, products and teams, and continued to increase the market strategic layout of “real estate hardcover, brand upgrading and health care industry”.
22q1 achieved month on month repair in terms of profit, with good cost control during the period
In 2021, the company’s comprehensive gross profit margin was 22.76%, a year-on-year decrease of 4.17pct, mainly due to the sharp rise in the price of raw materials. The comprehensive gross profit margin of 22q1 company was 22.72%, a year-on-year decrease of 1.36pct and an increase of 1.92pct compared with 21q4.
In terms of period expenses, in 2021, the expense rate was 14.19%, a year-on-year decrease of 2.48 PCT, and the expense rates of sales / management / R & D / finance were 2.43% / 11.02% / 5.30% / 0.74%, a year-on-year decrease of 0.38/1.55/0.36/0.56 PCT respectively. During 22q1, the expense rate was 13.42%, a slight decrease of 0.04pct year-on-year, and the expense rates of sales / management / R & D / finance were 2.68% / 10.58% / 5.57% / 0.16% respectively, with a year-on-year increase of + 0.29 / – 0.83 / + 0.34 / + 0.50PCT respectively. Under the comprehensive influence, the net interest rate attributable to the parent company in 21 years was 7.99%, a year-on-year decrease of 1.53pct. The net interest rate attributable to the parent company of 22q1 was 8.45%, a year-on-year decrease of 1.28pct and an increase of 2.26pct compared with 21q4.
Investment suggestion: Runner(Xiamen) Corp(603408) 2021 starts the three wheel drive development strategy of “technology driven, health driven and brand driven”, the overseas business grows steadily, the Chinese market accelerates the development, and steadily promotes the all-round development of the healthy home industry. We expect the operating revenue of Runner(Xiamen) Corp(603408) 20222024 to be RMB 5.467 billion, 6.318 billion and 7.222 billion, with a year-on-year increase of 16.02%, 15.57% and 14.31%; The net profit attributable to the parent company was 421 million yuan, 492 million yuan and 563 million yuan, with a year-on-year increase of 11.87%, 16.86% and 14.43%, corresponding to PE of 11.8x, 10.1x and 8.9x. The investment rating of overweight-a was given.
Risk warning: industry competition intensifies the risk; Risk of sharp fluctuations in raw material prices; Exchange rate fluctuation risk.
