\u3000\u3 Shengda Resources Co.Ltd(000603) 610 Keeson Technology Corporation Limited(603610) )
Event:
The company released the first quarterly report of 2022: the revenue in the first quarter of 2022 was 744 million yuan, a year-on-year increase of 14.05%; The net profit attributable to the parent company was 56 million yuan, a year-on-year decrease of 21.82%; Deduction of net profit not attributable to the parent company was 61 million yuan, a year-on-year decrease of 11.09%; Realize the basic earnings per share of 0.20 yuan.
Guoyuan view:
Rising raw material and shipping costs affect short-term profitability
Affected by the rising cost of raw materials and shipping, the company’s profitability declined. The gross profit margin / net profit margin of 22q1 company was 34.88% / 7.41% respectively, which was -0.36 / -3.46pcts year-on-year and -3.40 / -5.85pcts month on month compared with 21q4 respectively. From the cost side, the company’s Q1 sales expense rate / management expense rate / financial expense rate in 2022 were 8.97% / 9.07% / 0.87% respectively, with a year-on-year 21q1 of + 0.64 / – 0.82 / + 2.14pcts respectively. The major reason for the significant increase in financial expenses was the increase in short-term loan interest payment and exchange loss. The R & D rate of 22q1 company was 4.86%, compared with 21q1-0.11pcts, and the R & D level remained stable.
Chinese products have improved their reputation and foreign countries continue to explore new markets
In China, the company actively expands the market with its subsidiaries Sofitel, Shuford and other brands, and quickly establishes the brand image through multi-channel cooperation with well-known brands and e-commerce platforms; In the 2022 Beijing Winter Olympic Games and winter Paralympic Games, the company is the only smart bed supplier. It is equipped with 6300 Olympic smart beds and 30 sleep rest cabins for the production of the Winter Olympic Games, which has been publicized and recognized by Chinese and foreign athletes and Zhangjiakou Winter Olympic Games (winter Paralympic Village). Abroad, the company sells its products to Europe, North America and other regions through its subsidiaries such as augmorsen and Nanbu Bay International. Among them, the indirect wholly-owned subsidiary augmorsen’s revenue / net profit in 2021 was 2.27/47 billion yuan respectively, an increase of 39.66% / 605.79% year-on-year compared with 2020. In addition, on the basis of stabilizing the North American market, the company renewed the three-year electric bed product manufacturing and supply agreement with tempurworld, LLC, which also provided an opportunity to enter the UK market. It is expected that with the opening of foreign markets, the rapid improvement of Chinese company brand image and the gradual popularization of consumer education, the company’s intelligent electric bed business has a huge growth space.
The production capacity is waiting for landing, and the products continue to upgrade
In terms of production capacity, at the beginning of 2022, the company’s 4 million smart electric bed headquarters project (phase II) R & D center and supporting plant project have been started; While Mexican factories in overseas manufacturing centers actively promote the ramp up of production capacity, sponge and spring mattress projects are also accelerating the production. In terms of products, the company pays attention to research and development, and has invested more than 10 million yuan to build a Keeson Technology Corporation Limited(603610) testing center covering an area of more than 2000 square meters, which has obtained the laboratory accreditation certificate issued by the global authority CNAs, and the research and development ability has obtained the authoritative certification; In addition, the company has reached a global strategic cooperation agreement with Garmin, an industry-leading provider of physiological health monitoring technology, which is expected to strengthen and promote the company’s existing intelligent system products in the field of data application, and expand the customer base of its subsidiary ogmoson.
Investment advice and profit forecast
As the leader of China’s intelligent electric bed, the company has strong advantages in scale and R & D technology. At present, there is still much room to improve the penetration rate of overseas market. The introduction of Chinese market and consumer education are carried out steadily. The company is expected to benefit from the double improvement of penetration rate and market share in the future. We expect the company’s revenue in 22-24 years to be RMB 3.530/4.183/4.916 billion respectively, the net profit attributable to the parent company to be RMB 4.28/5.02/585 billion, the EPS to be RMB 1.53/1.79/2.09/share, and the corresponding PE to be 11.17/9.50/8.16 times, maintaining the “buy” rating.
Risk tips
Price fluctuation of raw materials; Too many downstream customers; Industry competition intensifies.
