Events:
The company released its semi-annual report for 2022: 2022H1 achieved a revenue of 1.103 billion yuan, an increase of 20.88% over the same period last year; a net profit of 75 million yuan, an increase of 18.04% over the same period last year; and a non-return net profit of 74 million yuan, an increase of 8.96% over the same period last year.
Guoyuan point of view:
Steady growth in overall performance and marginal improvement in operating cash flow
22H1 achieved revenue of 1.103 billion yuan (yoy+20.88%). From a quarterly point of view, 22Q1-2 achieved revenue of 80,000 million yuan, which was + 47.21% and 17.93% respectively compared with the same period last year. Due to the high inflationary pressure in the United States, major customer inventory strategy adjustment and other factors, the company's second-quarter revenue was under pressure.
22H1 realized a net profit of 75 million yuan (yoy+18.04%). From a quarterly point of view, 22Q1-2 realized a net profit of 0.61 million yuan, which was 37.92% compared with the same period last year. Sub-business point of view: the company's lawn mower business achieved revenue of 966 million yuan, an increase of 31.1% over the same period last year. In addition, due to the increase in the margin of sales rebate, the cash flow of the company's operating activities improved, with a 22H1 of 367 million yuan (yoy+636.8%).
Profit margin is under short-term pressure, and it is optimistic that the subsequent marginal rebound in profitability is due to factors such as raw materials and labor costs, and the company's profitability is under pressure; however, with the marginal improvement in raw material prices and exchange rates, it is expected that the subsequent profit margin will pick up. 22H1's comprehensive gross profit margin fell 2.40pcts to 16.50% year-on-year. Quarterly gross profit margin of 22Q1-2 decreased by 17.75%, 13.20%, 5.84pcts, respectively, compared with the same period last year. Net profit margin decreased by 0.16pcts to 6.79%. On the expense side, the sales expense rate / management expense rate / financial expense rate / R & D expense rate compared with the same period last year + 0.75pcts/+0.41pcts/-2.61pcts/-0.51pcts to 3.50% Compact 3.22% Maximi 1.13% Greater 2.61%.
Among them, the increase in sales expense rate is mainly due to the increase in independent brand promotion expenses; the increase in management expense rate is mainly due to the depreciation of fixed assets, the increase in personnel wages and the amortization of share payments. If share payment fees are removed, the company management expense rate is 2.77% (yoy-0.04pcts); the reduction in financial expense rate is mainly due to the impact of foreign exchange gains and losses.
"Channel + capacity + product" three-wheel drive, intention order abundant growth potential sufficient company is the leader of the garden machinery industry, in recent years, the company has achieved breakthroughs in channel expansion, capacity construction and product innovation, and gradually strengthen its own competition barriers. On the channel side, the company has established solid cooperative relations with a number of high-quality customer groups such as Home Depot, Walmart Inc and Fushihua Group, among which Home Depot, the largest assembly channel provider in North America, has become the company's new growth pole, and 22Q1 has become the company's largest customer; on the production side, the company's IPO investment project and subsequent convertible bond projects break its own capacity bottleneck, superimposing overseas manufacturing bases in North America and Southeast Asia to gradually improve, and capacity space continues to open.
On the product side, on the basis of vigorously developing the original lawn mower products, the company actively develops high value-added riding and lithium electric products, and the product matrix is becoming more and more perfect. The company intends to have abundant contracts. As of July 28, 22, the company has obtained more than 50, 000 units / 200000 sets / 500000 sets of intentional contracts for riding lawnmowers / lithium electric mowers / handheld lithium-like products respectively. We are optimistic about the follow-up growth of the company under capacity expansion.
Investment advice and profit Forecast
The company has been ploughing the garden machinery industry for more than ten years, and with the continuous deepening of cooperation with The Home Depot Inc and the continuous improvement of superimposed production capacity and product power, the company is expected to enter a period of high performance growth. It is estimated that the company's revenue from 2022 to 2024 will be 21.393080,3737 million yuan respectively, the net profit from its parent will be 1.72 million yuan, 258,333 million yuan, and the EPS will be 1.08 million yuan per share, respectively, and the corresponding PE will be 24.8616.61 yuan 12.85 times, respectively, maintaining the "buy" rating.
Risk hint
The market demand fluctuation risk, the industry competition intensifies, the product innovation falls short of the expectation, the exchange rate fluctuation risk.