Q3 revenue side steady growth, raw material prices fell gross profit margin increased, maintaining the "buy" rating company released the third quarter of 2022 report, 2022Q1-3 achieved operating income of 1.99 billion yuan (+ 4.9%), return to the mother net profit of 270 million yuan (+ 38.8%), deducted non-net profit of 260 million yuan (+ 81.1%). In the Q3 quarter alone, the revenue was 760 million yuan (+ 7.1%), the net profit was 120 million yuan (+ 32.6%), and the non-net profit was 120 million yuan (+ 101.7%). The business of domestic washing machines continued to expand, the price of raw materials decreased and the exchange earnings increased.
We raise our profit forecast for 2022 to maintain the profit forecast for 2023-2024. We estimate that the net profit of 2022-2024 will be 3.510 million yuan (the original value in 2022 is 290 million yuan), corresponding to the corresponding EPS of 0.9 pound 1.2 yuan (0.70 yuan in 2022), and the current stock price will correspond to 24.5 shock 22.8pm 18.4 times, maintaining the "Buy" rating unchanged.
The excellent market performance of Mibo's second-generation floor washer products is expected to drive the company to maintain high revenue through cooperation with customers such as Fangtai and Shark to cut into the high-growth floor washer track. On the one hand, the Shark brand floor washer was successfully delivered in mass production; on the other hand, according to Ovi data, the market share of online retail sales of Mbo brand floor washer 2022Q3/ single M9 reached 2.2% and 3.5% respectively, rising to the third place in September alone. The main upgrade model, non-rolling cloth floor washer V6A, continued to sell well after it was launched in August. V6A is the second generation floor washer product of MIBO, with the intelligent two-way power system created by MIBO. At the same time, the product is equipped with 8000 rpm high-speed motor lower suction is stronger, with an upgraded version of self-cleaning system, 76 dB of low noise. We expect that the expansion of new Mibo products and floor washers and the launch of independent brand clean appliances in 2023 are expected to continue to create revenue increments.
The decline in the price of raw materials led to an increase in gross profit margin, foreign exchange earnings thickened performance 2022Q1-3 gross profit margin 19.4% (+ 3.0pcts), period expense rate 3.4% (- 3.1pcts), sales / management / R & D / financial expense rate of 0.5%, respectively, the rate of sales / management / research and development / financial expenses was 0.5%, 3.0% and 3.3%, respectively, compared with the same period last year.-0.3/+0.1/+0.5/-3.4pcts.
Under the comprehensive influence, the net interest rate of 2022Q1-3 is 13.8% (+ 3.3pcts). Q3 gross profit margin is 19.6% (+ 3.2pcts), driven by the falling price of raw materials, gross profit margin is expected to continue to rise. The period expense rate is 0.7% (- 4.8pcts), of which the sales / management / R & D / financial expense rate is 0.4%, 2.4%, 3.0%, 5.1%, respectively, compared with the same period last year.-0.4/-0.6/+0.7/-4.5pcts. Among them, the decline in the rate of financial expenses is mainly due to more foreign currency net assets of the company, benefiting from the increase in exchange gains from the depreciation of RMB. Under the combined influence, the net interest rate of Q3 is 16.3% (+ 3.1pcts).
Risk tips: repeated epidemic risk; raw material price risk; domestic floor washing machine business development is not as expected.