2022Q2's high performance, optimistic about the continued improvement of profitability, maintaining the "buy" rating 2022H1 revenue of 1.23 billion yuan (+ 3.6%), of which 2022Q2 revenue of 680 million yuan (+ 1.6%). In the face of the impact of the international situation and repeated epidemics, the company promotes innovation through floor washing machines, gives full play to the advantages of the vertical supply chain, and maintains steady revenue growth. The net profit of 2022H1 is 150 million yuan (+ 44.3%), of which the net profit of 2022Q2 is 90 million yuan (+ 99.8%). The high performance is driven by the increase in exchange gains and credit impairment losses. To maintain the profit forecast, the company's net profit from 2022 to 2024 is expected to be 2.9pm 370pm net profit, corresponding to EPS 0.70.9max 1.2 yuan respectively, and the current share price corresponds to 28.0pm 21.6max 17.4 times, maintaining the "buy" rating.
The main business of vacuum cleaner foundry remains stable, and it is promising to bind with high-quality customers to expand high-growth floor washer track 2022H1 wireless / wired vacuum cleaner products to achieve income of 72pm, respectively, accounting for-0.9% and 17.9%, respectively, accounting for 91.6% (+ 1.4pcts) of revenue. 2022H1's sales to JS Global Lifestyle Company Limited, the largest customer, accounted for 80.05% of revenue, and the main business of vacuum cleaners developed steadily. 2022H1 accounts for 16.9% of domestic revenue (+ 1.6pcts), and the company is expected to work with Fang Tai, Shun Chuang, Shark and other customers to create new revenue points in the booming floor washer track. In May 2022, the company cooperated with Fang Tai to launch the industry's first mop-free floor washer product, MIBO V6Magi. In June, the online retail volume of MIBO products reached 36.12 million yuan, with a market share of 3.5%.
2022Q2 gross profit margin increased significantly, with the contribution of superimposed exchange gains, the net profit margin continued to increase by 19.3% (+ 2.9pcts) for 2022H1 and 18.7% (+ 2.4pcts) for 2022Q2, mainly due to the depreciation of RMB exchange rate and the improvement of product structure. See 2022H1 wireless lithium vacuum cleaner / wired vacuum cleaner gross profit margin + 2.6/+2.8pcts respectively. According to the region, the gross profit margin of 2022H1 domestic and overseas business is + 3.3/+3.0pcts respectively. The devaluation of the 2022H1 RMB drives the exchange gain of 27 million yuan, driving the expense rate during the 2022H1 period-2pcts. 2022Q2 sales / management / R & D / financial expense rates compared with the same period last year-0.3/+0.6/-0.3/-6.1pcts.
2022H1 net interest rate is 12.2% (+ 3.4pcts), 2022Q2 net interest rate is 13.5% (+ 6.6pcts). We are optimistic that with the improvement of product structure, the decline in raw material prices and the depreciation of RMB, the company's net interest rate will continue to rise.
Risk hint: exchange rate fluctuation risk; new business expansion is not as expected risk; raw material price rise risk.