2021-10-28 Li Yuanyuan and Ji Xiaofei of Xinda Securities Co., Ltd. conducted a research on ingenuity home and released a research report entitled "performance continues to increase, leading growth is expected". This report gives a buy rating to ingenuity Home, and the current stock price is 67.64 yuan.
Ingenious Home (301061)
Event: the company released its financial results for the third quarter of 2021, with an income of 1.49 billion yuan, an increase of 70.38%, a net profit of 236 million yuan, an increase of 53.06%, a deduction of 235 million yuan, and a 57.75% increase of 57.75%. 2021Q3 achieved an income of 508 million yuan, an increase of 21.85%, a net profit of 86 million yuan, an increase of 28.95%, and a deduction of 85 million yuan from non-net profit, an increase of 29.36%. The company's performance maintained a rapid growth rate, the net profit was higher than the performance forecast level, and the downstream prosperity was at a higher level.
Comments:
Sales drive the rapid growth of income, and the prosperity of overseas demand is high. The company mainly exports intelligent electric sofas, electric beds and other products, mainly to the American market. After the global COVID-19 epidemic broke out in 2020, the demand of overseas residents for smart home increased rapidly, the company's product sales driven income growth accelerated, and the price remained stable as a whole, among which the sales volume and income growth rate of electric sofa was relatively high. 2021Q3 due to a high base, the company's revenue growth has slowed down, but the overall rapid growth, overseas demand continues to be high.
The gross profit margin decreased compared with the same period last year, the expense rate remained stable, and the net operating cash flow increased year-on-year. 1) in the first three quarters of 2021, the company's gross profit margin was reduced by 1.00PCT to 33.91%, mainly due to the increase in costs such as raw materials, while 2021Q3's gross profit margin was reduced by 2.46PCT to 34.78%. 2) in the first three quarters of 2021, the company's sales, management, R & D and financial expense rates increased by 1.24PCT,-0.11PCT,-1.01PCT and-0.64PCT to 8.31%, 2.63%, 4.56% and 0.02%. The increase in shipping costs led to an increase in the sales expense rate, while the increase in exchange earnings led to a decrease in the financial expense rate. 3) the net cash flow of the company's operating activities increased by 25.41% to 148 million yuan in the first three quarters of 2021, mainly due to a significant increase in cash received from the sale of goods.
Smart home space is huge, industry leaders are expected to benefit. At present, the penetration rate of overseas smart home is at a low level. In recent years, with the upgrading of household consumption and the intensification of aging, the demand for intelligent electric sofa and electric bed products is growing rapidly, and there is more room for the development of the industry. The company as a domestic leader, after years of operation, has accumulated R & D and design, customer service, manufacturing, customer resources and other advantages, bound to overseas head furniture channel vendors. After listing, the company's production capacity will be further expanded, and in the future, it will continue to expand high-quality channel resources such as America, Europe and China, so as to promote the sustained growth of income and performance. At the end of September 2021, the company invested in Sun Company to accelerate the expansion of its own brand business and domestic market.
Earnings forecast and investment rating: due to the higher-than-expected growth of the company's performance, we have raised the EPS forecast for 2021-23 to 3.40 PE 4.25 (the original value is 3.32 4.22). The current stock price corresponds to 19.61 times RMB in 21 years, and the valuation is at a low level. The company's smart home business development space is huge, the industry leading position appears, the future is expected to continue to expand new channels, new categories, maintain the "buy" rating.
Risk factors: the impact of the epidemic exceeded expectations, the exchange rate fluctuated sharply, and the expansion of new customers was lower than expected.
The stock has been rated by two agencies and two buy ratings in the last 90 days; the average institutional target price has been 100.0 in the past 90 days; according to the Securities Star valuation analysis tool, ingenious Home (301061) good companies have a rating of 3.5 stars, a good price rating of 1 star, and a comprehensive valuation rating of 2.5 stars.