Events:
The company released its quarterly report for 2022: in the first three quarters of 2022, the company realized revenue of 1.328 billion yuan, an increase of 11.28% over the same period last year; net profit of 66 million yuan, a decrease of 8.84% over the same period last year; and net profit of 74 million yuan, an increase of 16.21% over the same period last year. Basic earnings per share is 0.41 yuan per share.
Short-term performance is under pressure due to overseas inflation and sluggish demand. Operating cash flow improved 22Q1-3's revenue of 1.328 billion yuan (yoy+11.28%) compared with the same period last year. From a quarterly point of view, 22Q1-3 achieved revenue of RMB 225 million, year-on-year + 47.21% and + 47.21%, 17.93% and 19.87%, respectively, due to high inflationary pressure in Europe and the United States, sluggish downstream demand and high inventory levels of major customers. The company's revenue came under pressure in the first three quarters. 2022Q1-3 realized a net profit of 66 million yuan (yoy-8.84%). From a quarterly point of view, 22Q1-3 realized a net profit of 0.61, 0.14 and 9 million yuan, respectively, compared with the same period last year, + 49.92 percent, 37.92 percent, and 204.08 percent, respectively. Due to the increase in the marginal return of sales, the marginal cash flow of the company's operating activities has improved, 22 Q1-3 is 153 million yuan (yoy+408.56%).
Profit margins are under pressure, and the subsequent recovery in profitability is expected to be due to rising raw materials and labor costs, brand promotion and increased depreciation of fixed assets, while the company's profitability is under pressure in the first three quarters. It is expected that with the subsequent marginal decline in raw material prices and the accelerated release of orders for high-margin products, profitability is expected to improve. 22Q1-3's comprehensive gross profit margin decreased by 1.61pcts to 16.12% compared with the same period last year. On a quarterly basis, 22Q1-3 gross profit margin was 17.75%, 13.20%, 14.23%, respectively, compared with the same period last year.-1.06pcts, CPT, 5.84pctsUniverse, 0.28pcts; net profit margin, 1.10pcts, to 4.95%. On the expense side, the sales expense rate / management expense rate / financial expense rate / R & D expense rate is respectively from + 0.99pcts/+0.68pcts/-3.91pcts/-0.21pcts to 4.39% to 3.97% to 2.64% 3.33%. Among them, the increase of sales expense rate is mainly due to the increase of independent brand promotion expenses and personnel salary; the improvement of management expense rate is mainly due to the depreciation growth of fixed assets and the amortization of share payment; the decrease of financial expense rate is mainly due to the increase of exchange earnings.
The "channel + capacity + product" three-wheel drive, with abundant intention contracts, is optimistic that the medium-and long-term high-speed growth company will become the leader in the garden machinery industry. in recent years, the company has made breakthroughs in channel expansion, capacity construction and product innovation. gradually strengthen their 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 in North America, has become the new growth pole of the company's performance; on the production side, the company's IPO investment projects and subsequent convertible bond projects break their own capacity bottlenecks, superimposed overseas manufacturing bases in North America and Southeast Asia are gradually improved, 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 is now interested in abundant contracts. As of August 31, 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 rapid growth of the company under medium and long-term 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 2.982, 2.954, respectively, 3.717 billion yuan, net profit 1.31 million, 2.13 million, 298 million, 0.82, 1.33, 1.86 per share, respectively, and the corresponding PE will be 21.93, 13.479.66 times, maintaining the "Buy" rating.
Risk hint
The market demand fluctuation risk, the industry competition aggravates the risk, the exchange rate fluctuation risk.