The readings of this report are as follows:
2021H1 revenue-side performance exceeded expectations, medium-and long-term is expected to rely on product quality, delivery assurance, product design capabilities and other advantages to continue to open up the market.
Main points of investment:
Maintain the target price of 4.68 yuan and maintain the overweight rating. The company's 2021H1 revenue performance exceeded expectations, and it is expected to continue to open up the market by virtue of product quality, delivery assurance, product design capabilities and other advantages in the medium and long term. We maintain 2021, the new 2022-2023 EPS forecast of 0.280.33 Universe 0.38yuan, maintain the target price of 4.68RMB, corresponding to 2021 about 17 times PE, maintain the overweight rating.
2021H1 revenue-side performance exceeded expectations, exchange rate, rising prices of raw materials and other factors affect profit performance. Under the influence of the epidemic, the demand for family garden leisure products in overseas markets increased significantly, with 2021H1 achieving a revenue of 4.206 billion yuan and an increase of 42.86%. Due to fluctuations in the RMB exchange rate, rising raw material prices and rising labor costs, the gross profit of the main business decreased by 91 million yuan compared with the same period last year; in addition, the investment income and fair value change income of the company's transactional financial assets decreased by 84 million yuan compared with the same period last year, and the net profit of 2021H1 homing / deducting non-homing net profit was 458 million yuan / 367 million yuan respectively, with a decrease of 24.37% 12.10%.
The demand for family garden leisure products in overseas markets has increased, and various measures have been taken to actively meet the needs of customers. The company reported that according to the statistics of received orders and intended orders, the number of orders from 2021.7 to 2022.6 may increase by more than 30% compared with the same period last year. The company continues to strengthen investment in brand and e-commerce sales, trying to independently develop and operate cross-border e-commerce business. In the face of the adverse effects of the shortage of shipping capacity and the rise of bulk materials, the company adjusts the order delivery time to meet customer demand and arranges a reasonable production plan to ensure smooth delivery.
Product categories continue to expand, channel layout continues to improve. On the basis of traditional categories, the company continues to develop new products and take orders in batches, category expansion advances steadily, outstanding R & D and design capabilities and sample production system provide a guarantee for the company's market development; in terms of channels, the company has self-import and export rights, and is expected to continuously improve customer recognition by virtue of product quality, delivery guarantee and product design capabilities.
Risk hint: the risk of raw material price fluctuation and the risk of exchange rate fluctuation.