Company 9 (689009)
Event: Recently, the company released the first quarterly report of 2022.
Comments:
In the first quarter of 2022, the growth rate of the company’s revenue slowed down, which is expected to be dragged down by Xiaomi’s customized product distribution business. In the first quarter of 2022, the company achieved an operating revenue of 1.917 billion yuan, a year-on-year increase of 7.80%; The net profit attributable to shareholders of listed companies was 384466 million yuan, a year-on-year increase of 51.32%. In terms of sub channels, the company’s independent brand distribution revenue was 980 million yuan, a year-on-year increase of 51%; The direct sales revenue of Tob products was 650 million yuan, with a year-on-year increase of 81%; The distribution revenue of Xiaomi customized products was 290 million yuan, a year-on-year decrease of 62%. Compared with the fourth quarter of last year, the year-on-year growth rate of the company’s revenue end and profit end in the first quarter of 2022 slowed down, which is expected to be mainly affected by the decline of Xiaomi’s customized product distribution business revenue. However, relying on the development of shared electric scooters, the company’s b-end business revenue maintained a high growth rate; Meanwhile, all terrain vehicles, two wheeled electric vehicles, electric balance vehicles, electric scooters and other independent brand products maintained good growth, and the overall performance of the company continued to grow.
The company’s profitability improved. In the first quarter of 2022, the gross profit margin of the company’s sales was 22.02%, with a year-on-year increase of 0.59 percentage points, and the net profit margin of sales was 1.98%, with a year-on-year increase of 0.55 percentage points. It is expected that the decrease in the proportion of Xiaomi distribution channel business with low gross profit margin will improve the overall profitability. With the development of the company’s products, the new series of electric scooters and all terrain vehicles are expected to promote the average price and increase the gross profit margin of intelligent short transportation business; The launch of mowing Siasun Robot&Automation Co.Ltd(300024) is expected to increase the proportion of service Siasun Robot&Automation Co.Ltd(300024) business with high gross profit margin. In the future, with the continuous optimization of the company’s product structure, the overall profitability is expected to continue to increase.
The company continues to increase R & D investment. In the first quarter of 2022, the company invested 116 million yuan in R & D, an increase of 13.68% over the same period in 2021. Guided by the market direction and customer demand, the company continues to improve and innovate the technology of products, continuously increases the intensity of independent research and development, and continues to innovate in the Siasun Robot&Automation Co.Ltd(300024) field of intelligent short transportation and services. In March 2022, Beijing Municipal Commission of science and Technology identified Nanbo (Beijing) Technology Co., Ltd., a wholly-owned subsidiary of the company, as “Beijing Design Innovation Center”.
Investment suggestion: No. 9 company focuses on innovative short-term transportation and service Siasun Robot&Automation Co.Ltd(300024) field, with remarkable smart mobile capability. The company has a number of core technologies with strong universality, coexistence of sense of science and technology and sense of entertainment, perfect channels at home and abroad, strong brand effect, superposition of the ability to continuously push through the old and bring forth the new, and the future growth can be expected. We expect the company’s earnings per share in 2022 / 2023 to be 1.28 yuan / 1.88 yuan respectively, and the current share price corresponding to PE is 29 times / 20 times respectively, maintaining the “recommended” rating of the company.
Risk tip: the cooperation mode between the company and Xiaomi group may have an adverse impact on future operations; Risks of major changes in product structure; International business risks; Exchange rate fluctuation risk; R & D failure risk; Risks associated with the issuance of depositary receipts; Risks related to agreement control, etc.
