\u3000\u3 Shengda Resources Co.Ltd(000603) 579 Shanghai Rongtai Health Technology Corporation Limited(603579) )
Key investment points
Performance summary: the company released the first quarterly report of 2022. Q1 company achieved a revenue of 560 million yuan, a year-on-year increase of 8.6%; The net profit attributable to the parent company was 58.326 million yuan, a year-on-year decrease of 15.0%; The net profit attributable to the parent company after non deduction was 42.769 million yuan, a year-on-year decrease of 30.4%.
Q1 revenue continued to grow. In terms of regions, the company’s export orders continue to be strong, and the growth rate of Q1 export revenue is expected to be more than 10%. In terms of domestic sales, the company continued to strengthen the construction of online channels and gradually tried the model of exclusive stores offline. From January to February, the growth momentum of domestic sales was strong. However, since March, the epidemic in China has been repeated, the weak consumer demand in China and the limited logistics have affected the Wuxi Online Offline Communication Information Technology Co.Ltd(300959) sales of the company to a certain extent. Looking forward to the future, we believe that with the gradual control of the epidemic, the recovery of logistics and the gradual return of the company’s production and operation to normal, the company’s domestic and foreign sales are expected to return to normal.
Profitability improved month on month. During the reporting period, the company’s gross profit margin was 27.4%, a year-on-year decrease of 2.6pp and a month on month increase of 1.4pp. In terms of expense rate, the sales expense rate / financial expense rate of 2022q1 company increased by 1.1pp/1.0pp to 8.2% / 0.9% year-on-year respectively. The management expense ratio / R & D expense ratio decreased by 4.5pp/0.6pp to 3.9% / 4.5% respectively year-on-year. Overall, the company’s net interest rate was 10.4%, a year-on-year decrease of 2.9pp and a month on month increase of 4.6pp. Overall, under the influence of the continuous rise in raw material prices, the company’s profitability declined year-on-year. However, it has improved month on month. We speculate that it is due to the gradual effect of the company’s export price adjustment. In the future, with the continuous effect of the company’s product structure optimization and price adjustment strategy, the company’s profit performance is expected to recover steadily.
Profit forecast and investment suggestions. Since the beginning of the year, the epidemic has been repeated, which has not only affected the sales performance of the company’s terminals, but also affected the production and shipment of the company’s factories to a certain extent. However, the company is full of toughness and Q1 profit improved month on month. In the future, as the epidemic situation eases, the company’s production and operation will return to normal, the Wuxi Online Offline Communication Information Technology Co.Ltd(300959) channel layout will be continuously improved, and the export customers will be diversified. It is expected that the company’s revenue performance will return to the growth track. It is estimated that the company’s EPS from 2022 to 2024 will be 2.01 yuan, 2.43 yuan and 3.05 yuan respectively, maintaining the “buy” rating.
Risk tip: the price of raw materials may fluctuate sharply, and the development of new energy market is less than expected.
