Reliable Co., Ltd. released its performance report for the first quarter of 2021 and 2022 on April 23.
The company achieved revenue of 1,186 billion yuan in 2021, a year-on-year decrease of 27.44%. Among them, 21Q1/Q2/Q3/Q4 revenue was 333 million/298 million/236 million/320 million yuan, respectively, a year-on-year change of +6.06%/-38.72%/-45.54%/-20.44%. 2022Q1 achieved revenue of 322 million dollars, a year-on-year decrease of 3.34%.
By product, in 2021, the company's baby care/adult incontinence products/pet hygiene products/masks and other products achieved revenue of 612 million/464 million/88 million/023 million yuan, a year-on-year change of -34.8%/+8.1%/+13.9%/-88.1%, accounting for 51.6%/39.1%/7.4%/1.9% of revenue, respectively.
In terms of sales model, the company's own brand sales revenue in 2021 was 391 million yuan, a year-on-year decrease of 12.05%, excluding the impact of epidemic prevention materials revenue, an increase of 6.15%; ODM business sales revenue was 778 million, a year-on-year decrease of 33.81%, excluding the impact of revenue from epidemic prevention materials, a year-on-year decrease of 28.01%.
By region, the company's revenue in domestic/overseas regions was 604 million/582 million yuan respectively, a year-on-year decrease of 27.13%/27.77%.
Gross profit margin: The company's gross profit margin in 2021 was 18.64%, down 9.19pcts year on year; Q1 gross profit margin in 2022 was 12.07%, down 13.30pcts year on year.
Expense side: In 2021, the company's sales/management/R&D/financial expense ratio was 7.64%/3.13%/4.15%/-0.53%, respectively, with a year-on-year change of 3.64pcts/1.61pcts/0.55pcts/-1.90pcts.
The sales/management/R&D/financial expense ratios of 2022Q1 were 6.90%/2.04%/3.53%/-1.64%, respectively, with a year-on-year change of 1.35 pcts/0.38 pcts/0.32 pcts/-1.47 pcts.
Net profit: In 2021, net profit was 40 million yuan, a year-on-year decrease of 81.43%, and a year-on-year net profit margin of 3.35%, a year-on-year decrease of 9.74pcts. The net profit for 2022Q1 was 0.02 billion yuan, a year-on-year decrease of 95.14%, and a year-on-year net interest rate of 0.61%, a year-on-year decrease of 11.49 pcts.
Cash flow: Net cash flow from the company's operating activities in 2021 was $51 million, compared to $396 million in the same period last year. Net cash flow from 2022Q1's operating activities was $27 million, compared to $48 million for the same period last year.
Profit prediction and valuation: Due to the impact of the pandemic on the birth population and the rise in raw material costs, the previous net profit for 2022/2023 was 26/292 million. After adjustment, we comprehensively estimate the company's net profit for 2022/2023 to be 78 million/153 million yuan, corresponding to 43x/22xPE, maintaining “purchases”
ratings.
Risk warning: risk of international relations, risk of birth rate falling short of expectations, increased competition
