Events:
The evening of August 26th, 2021Rongtai HealthDisclosed the results of the China report in 2021, 2021H1 realized operating income of 1.248 billion yuan, and yoy+42.05%; returned to its mother.Net profit140 million yuan, yoy+41.66%; of which 2021Q2 realized operating income of 728 million yuan, yoy+31.76%; return net profit of 71.73 million yuan, yoy+3.24%.
Comments: continuous investment in research and development, new plant put into production, superimposed low base to promote the recovery of high revenue growth.
The company has a perfect massage chair research and development team, continuous research and development of new products, 2021H1 research and development of 8 projects, 7 invention patents, and made some breakthroughs in technology. In addition, the company's new plant was officially put into production at the end of March, with varying degrees of improvement in the automation of production technology and production equipment, leading to the continuous improvement of the company's operating conditions, with revenue of 1.248 billion yuan in 2021H1, superimposed by the low base effect in 2020, a year-on-year increase of 42.05%.
Among them, the operating income of 2021Q2 reached 728 million yuan, and the growth rate of yoy+31.76%, declined slightly.
Many factors push up costs, and a slight decline in gross profit margin is expected to improve in the future. 2021H1's overseas business has gradually returned to pre-epidemic levels, with record highs in the United States and steady increases in other regions such as South Korea, driving up the company's freight rates. In this report, the company adjusted the freight and miscellaneous charges from sales expenses to operating costs, superimposed by a sharp rise in the price of raw materials in 2021, resulting in a significant decline in the company's gross profit margin, with a 2021H1 of only 28.32% 2021H1 3.89pct.
If the price of 2021H2 raw materials is reduced, the company's profitability is expected to return to normal.
Offline channel sinking, online promotion, continue to promote brand building. In terms of offline channels, the company persisted in sinking channels and actively expanded in the blank market. 2021H1 attracted nearly 60 dealers and opened 194 new stores, promoting the growth of offline business by more than 100% compared with the same period last year. In terms of online channels, the company's massage chair products entered Li Jiaqi's live studio; and joined Huawei platform, successively put on the Huawei channel sales, 2021H1 Rongtai and Motorola e-commerce sales growth of more than 30%. In addition, the company hired Zhang Xiaofei as brand ambassador and worked with stars such as Li Xueqin and Qiao Shan.DisneyCooperate to launch "Rongtai-Marvel theme Exhibition" to continue to promote brand building.
Investment advice: the company's revenue is expected to grow by 27.73%, 18.97% and 14.70% respectively from 2021 to 2023, and its net profit will grow by 49.18%, 25.13% and 15.10% respectively. The current stock price is 14.02 times the 2021 valuation, covering the "buy" rating for the first time.
Risk Tip: raw material prices continue to rise, sales performance is lower than expected