Event: the company publishes its 2022 semi-annual report. The company's 2022H1 realized operating income of 1.232 billion yuan, an increase of 3.56% over the same period last year, and a net profit of 150 million yuan, an increase of 44.34% over the same period last year. Of this total, 2022Q2's single-quarter operating income was 683 million yuan, an increase of 1.60 percent over the same period last year, and its net profit was 91 million yuan, an increase of 99.82 percent over the same period last year.

Export contributed mainly to revenue, while domestic sales increased significantly. 1) in terms of products, wired vacuum cleaners, motors and floor sweeping robots are growing faster. 22H1's wireless lithium vacuum cleaner / wired vacuum cleaner / accessories / multi-function wireless mop / motor / floor sweeping robot business realized revenue of 7.21, 4.05, 0.36, 0.30, 0.14 / 12 million yuan, respectively, year-on-year-0.94 percent, 17.95 percent, 10.72 percent, 46.39, 42.85, 188.97. 2) from a regional point of view, export revenue is growing steadily, while domestic sales are growing rapidly. 22H1's export / domestic sales revenue was 1.022 billion yuan / 207 million yuan respectively, an increase of 1.62% and 14.00% over the same period last year. The company's export sales continued to grow against the adverse background of overseas inflation, and we expect to benefit mainly from the depreciation of the RMB exchange rate. The obvious growth in domestic sales is mainly due to the company's efforts to expand Fangtai and other domestic customers. In addition, during the reporting period, the company passed the ISO13485 medical device quality management system certification and completed the trial production of the first batch of commercial beauty instruments.

The performance has been greatly improved by exchange gains and losses. Gross profit margin: 22H1/22Q2 's gross profit margin increased by 2.88pct/2.41pct to 19.30% to 18.68%, mainly due to the devaluation of the RMB. Period expense rate:

The rate of financial expenses fluctuates greatly. 2022H1 R & D / sales / management / financial rates year-on-year + 0.29pct/-0.23/+0.57/-2.66 pct to 3.49Universe 0.48Universe 3.38Universe 2.21%, of which 22Q2 company R & D / sales / management / financial rates year-on-year-0.31/-0.26/+0.61/-6.05pct to 2.76Universe 0.39Universe 4.78% The great change of the company's financial expense rate is mainly due to the fluctuation of the exchange rate of RMB against the US dollar. Net interest rate: in summary, benefiting from the influence of exchange gains and losses, 22H1/22Q2 net interest rate increased by 3.43/6.63pct to 12.19 yuan 13.47% compared with the same period last year (2022 H1 company's exchange income was 27.01 million yuan, contributing 2.19% net interest rate).

Research and development continue to contribute to revenue increment. During the reporting period, the company and Fang Tai cooperated with Fang Tai to launch a new product of "MIBO non-rolling floor washer V6". Its strong water vapor washing and absorption technology can effectively solve the pain points such as easy to hide dirt and odor after rolling brushes are used by consumers after using the floor washer. and achieved a good market response (22 years 618 to promote "MIBO V6"

Achieved JD.com floor washer brand TOP2 results). The company has the R & D capability of the core components of clean appliances, and continues to iterate new products during the reporting period. In the long run, the company's R & D capability will continue to empower products to contribute to revenue increment.

Profit forecast and investment advice. We estimate that the net profit of homing in 2022-24 will be RMB 414,508 million respectively, an increase of 43.7%, 24.5% and 22.6% over the same period last year, maintaining the "overweight" rating.

Risk tips: important customer order transfer risk, epidemic repeatedly affect sales, exchange rate fluctuation risk