The company released the first quarter report of 2022. 2022Q1 realized operating income of 278 million yuan, down 13.74% from the same period last year, and realized net profit of 13 million yuan, an increase of 4.30% over the same period last year.
Revenue side: the company's 2022Q1 realized operating income of 278 million yuan, a decrease of 13.74% compared with the same period last year. In 2021, Q1-Q4 realized operating income of 3.22%, 4.06%, 3.61 million yuan, respectively, an increase of 48.2% over the same period last year, 2.56%, 1.64%, 8.28%. 22Q1's revenue decreased compared with the same period last year or due to the slowdown of the impact of the epidemic in 21 years, the development of e-commerce business and the growth of export sales led to a higher base.
Gross profit margin: the company's 2022Q1 gross profit margin is 29.04%, an increase of 3.00pct over the same period last year. The company's 2021 Q1-Q4 gross profit margin was 26.04%, 30.60%, 25.11%, 29.97%, respectively, compared with the same period last year-3.15pct/-0.80pct/-3.56pct/-1.35pct. The company's gross profit margin remained basically stable at the beginning of 22, and the impact of rising raw material costs is expected to slow down.
Expense side: the expense rate during the 2022Q1 period of the company is 21.82%, an increase of 3.66pct compared with the same period last year. Among them, the ① sales expense rate was 10.02%, an increase of 1.77pct over the same period last year; the ② management expense rate was 8.88%, an increase of 1.25pct; the ③ R & D expense rate was 2.88%, an increase of 0.57pct over the same period last year; and the ④ financial expense rate was 0.04%, an increase of 0.07pct over the same period last year. The company continues to promote the process of product intelligence, continue to carry out product iteration and product innovation on this basis, at the same time actively explore multi-channel construction, actively layout online channels, and open marketing ideas.
Profit side: the company's 2022Q1 realized a net profit of 13 million yuan, an increase of 4.30% over the same period last year, and a net interest rate of 4.78%, an increase of 0.83pct over the same period last year. In 2021, the company's Q1-Q4 realized a net profit of 0.13%, 0.45, 0.20, and 38 million yuan, respectively, compared with the same period last year, which was + 23.62%, 4.15%, 2.92%, 39.58%, respectively, and 3.96%, 11.11, 5.56%, 8.01%, respectively, compared with the same period last year.
Full scene + intelligent enabling products to enhance the power, online + to G to help channel end expansion. On the product side, the company is committed to achieving full-scene sports solutions to meet the sports needs of the whole crowd, continuously upgrading the "indoor scene" solution of national fitness, and has undertaken a total of more than 600 gymnasiums from 2020 to the end of 2021. At the same time, the company combines intelligent software technology with fitness equipment hardware technology to launch Shuhua Sports APP, which deeply matches the fitness needs of users. On the channel side, the company's distribution channels continue to expand, and continue to strengthen online channels, in JD.com, Tmall platform sales have a steady growth, and a new Douyin sales model. Moreover, the company actively carries out to G business, obtains government orders through bidding procurement procedures and competitive negotiations of local sports bureaus and other government units, and mainly sells 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 expect the company's 22-23 net profit to be 21 million yuan, corresponding to 25x/21x for PE, maintaining a "buy" rating.
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.