The company issues the 2021 annual report. In 2021, the operating income was 1.562 billion yuan, an increase of 5.25% over the same period last year, and the net profit was 116 million yuan, a decrease of 15.45% over the same period last year. Of this total, 2021Q4 realized operating income of 473 million yuan, down 8.28% from the same period last year, and realized net profit of 38 million yuan, down 39.58% from the same period last year.
Revenue side: the company achieved operating income of 1.562 billion yuan, an increase of 5.25% over the same period last year, mainly due to the slowdown in the impact of the epidemic in 2021 and the increase in customer demand for display shelves. In terms of products, the operating income of display supplies / indoor fitness equipment / indoor fitness paths / others is 3.10%, 9.71%, 2.42 million yuan, respectively, up 35.94%, 0.85%, 9.10%, 44.46%, respectively, accounting for 19.80%, 62.15%, 15.51%, 2.55%, respectively.
Gross profit margin: the company's gross profit margin in 2021 was 28.2%, a decrease in 2.20pct compared with the same period last year, mainly due to the impact of rising raw material prices. Among them, the gross profit margin of display products was 29.93%, a decrease of 1.45pct compared with the same period last year, mainly due to the increase in sales and changes in the product structure of customers; the gross profit margin of indoor fitness equipment was 26.99%, which decreased by 26.4% over the same period last year and increased by 0.63pct over the same period last year; and the gross profit margin of other businesses was 55.35%, a decrease of 9.06 pct over the same period last year.
Cost side: the company's expense rate during 2021 was 17.36%, an increase of 0.2pct over the same period last year. Among them, the sales expense rate and management expense rate increased slightly, while the financial expense rate decreased 0.71pct compared with the same period last year, mainly due to the company's abundant funds to repay loans ahead of time and reduce the size of loans in 2021.
Profit side: the company achieved a net profit of 116 million yuan in 2021, a decrease of 15.45% over the same period last year, mainly due to the increase in raw material prices and sales expenses compared with the same period last year; the net interest rate was 7.41%, a decrease of 1.82 pct over the same period last year. In the quarter, the net profit of Q3/Q4 homing in 2021 decreased by 2.92% and 39.58% respectively compared with the same period last year, mainly due to the rise in the price of raw materials such as steel.
Product side: actively create a full scene solution, product intelligent driver to meet the needs of the whole crowd movement.
The company has six product lines and is committed to achieving full-scene sports solutions to meet the sports needs of the whole crowd. The follow-up company will continue to promote the process of product intelligence and continue to carry out product iteration and product innovation on this basis.
Channel end: distribution channels continue to expand, online channels inject new vitality, to G channels are expected to quickly drive growth. Distributors remain stable, the company has more than 230dealers; strengthen online channels, add Douyin sales model; actively carry out to G business, through local sports bureaus and other government units of the bidding procurement procedures and competitive negotiations to obtain government orders, mainly selling outdoor path products and indoor fitness equipment products.
Investment suggestion: under the background of future sports policy stimulation and industry demand increment, the cultivation of independent brands, product R & D innovation and the continuous expansion of to G-end resources will help the company to further increase its market share.
We estimate that the 22-23 year net profit of the company will be RMB 21,000,000, corresponding to PE of 25x/21x respectively.
Risk hint: the risk of high customer concentration in exhibition business, the risk of high accounts receivable, and the risk of fluctuation of business income in outdoor path.