\u3000\u30 Xuchang Ketop Testing Research Institute Co.Ltd(003008) 66 Anker Innovations Technology Co.Ltd(300866) )
Event: the company achieved a revenue of 2.865 billion yuan in 2022q1, a year-on-year increase of 18.04%; The net profit attributable to the parent company was 199 million yuan, a year-on-year decrease of 2.74%; The net profit attributable to the parent company decreased by 58.8% year-on-year.
Domestic revenue grew rapidly and continued to deepen the layout of globalization. Although in the first quarter of 2022, some enterprises in the industrial chain were temporarily shut down due to the closure and control of the epidemic in China, the company reduced the overall impact to relatively controllable through a number of positive and effective response measures, and continued the strong upward trend at the revenue end, especially the excellent performance of domestic business. In the first quarter of 2022, the domestic operating revenue of the company was 110 million yuan, with a year-on-year increase of 29.48%; Overseas business income reached 2.755 billion yuan, an increase of 17.63% year-on-year. It is enough to prove that the company has made great breakthroughs in the development of emerging markets in recent years, especially in China’s local market. Anke has laid a certain brand awareness and accumulated a good customer base. Based on the company’s low penetration rate in emerging markets, there is sufficient growth space in the future; Moreover, emerging markets, as the company’s key development direction in recent years, will help the company quickly increase its global market share.
Profitability is under short-term pressure, and the profit elasticity space is objective. In the first quarter of 2022, the company’s gross profit margin was about 38%, down nearly 7 percentage points year-on-year from 2021; The net interest rate was 7%, down about 1.8 percentage points year-on-year. The decline in profitability is mainly due to (1) due to accounting adjustment, the company adjusted the transportation cost to the operating cost, so the operating cost increased, the gross profit margin decreased and the sales expense rate decreased. (2) During the reporting period, the R & D expenses were 207 million yuan, an increase of 69.50% year-on-year, mainly due to the increase of salary costs caused by the increase of R & D personnel. (3) The bad debt provision was reversed due to the recovery of accounts receivable, and the credit impairment loss was 14.875 million yuan; The provision for inventory depreciation resulted in asset impairment loss of -380211 million yuan. (4) Due to the decline in the price of Navitas shares held by the company, the loss from changes in fair value was 17 million yuan.
Driven by continuous high R & D, innovative products are worth looking forward to. The company goes deep into the field of consumer electronics and increases the layout of R & D talents and technical pre research. Supported by the R & D expense rate of 7.23% in 2022q1, a number of innovative products were launched. Intelligent innovation includes ankerworkb600 intelligent office audio hardware, eufy security double camera doorbell, eufy pet d605 pet monitoring and feeding machine; Ankermakem5, a new high-end consumer 3D printer brand launched overseas, received more than US $6 million in crowdfunding funds within 10 days of its launch on KickStarter, a crowdfunding platform. Meanwhile, in terms of energy storage, anker757 outdoor power supply (powerhouse1229wh) launched by the company adopts high-performance lithium iron phosphate battery cell and hyperflash rapid recharge technology, providing a safe and lasting power supply scheme for outdoor travel and home emergency. In March 2022, six products of the company won the German Red Dot Design Award. By the end of March 2022, it has won 79 international industrial and consumer electronic product design awards. Relying on its keen market insight and profound R & D and design ability, the company continues to tap the shallow water market and frequently launches a variety of excellent products, laying a solid foundation for the accelerated growth of performance.
Profit forecast and rating: maintain the overweight rating. As a leading cross-border e-commerce and well-known consumer electronics brand, Anker Innovations Technology Co.Ltd(300866) will continue to deepen the strategic layout of “multi category + all channel”. It can be seen from the results of the first quarterly report that the company’s investment in domestic market expansion is still strengthening, which is expected to provide strong growth momentum for the company. At the same time, high R & D investment ensures the continuous innovation of products, thus ensuring the long-term sustainable development of the company. After the sea transportation cost gradually drops and the epidemic situation improves in the future, the profit growth elasticity of the company is expected to recover. We predict that the company is expected to realize a net profit of RMB 1.181 billion, 1.548 billion and 1.897 billion from 2022 to 2024. The current market value corresponds to 19.53, 14.90 and 12.16 times of the valuation, maintaining the overweight rating of the company.
Risk tips: 1) the global epidemic situation worsens further and continues to affect the supply of raw materials and transportation capacity; 2) The research and development of new products of the company is less than expected; 3) The effect of market expansion is less than expected; 4) Industry competition intensifies.
