The company released the 618 report, and the company’s overall turnover exceeded 1.8 billion yuan, ranking first in the floor cleaning appliance industry. among them,CobosBrand turnover exceeded 900 million yuan, a year-on-year increase of 115%; Tianke brand turnover exceeded 900 million yuan, a year-on-year increase of 1132%.The 618 data once again confirmed the company’s sweepingrobotAnd the competitiveness of scrubber products.Looking forward to the second half of the year, the company’s three major business segmentsrobot, Smart small appliances, commercialrobotAll have new product layouts, and three businesses are expected to usher inPerformanceResonance.We raise the company for 2021/22/23Net profitThe forecast is 21.0/28.7/37.3 billion yuan (original forecast is 18.0/24.6/32.2 billion yuan), the target price is raised to 250 yuan, and the “buy” rating is maintained.
CobosBrand: During the 618 period, the turnover exceeded 900 million yuan, +115% year-on-year. (1) Products: The company launched two new products T9 and N9+ in 21Q1, among which T9 focuses on intelligent obstacle avoidance function, and N9+ focuses on automatic mop changing function. During the 618 period, N9+ ranked first in the category of sweeping robots. We previously judged that the automatic washing mop function will be the key point of this year’s market competition. The performance of N9+ in this 618 is consistent with our judgment. (2) Channel: During the 618 period, in addition to the Tmall channel, the company also strengthenedJingdongChannel promotion efforts. At the same time, the company actively adopts innovative marketing methods, 1. The first vibrato super product to reach the top in half an hour on the first place with the goods gang; 2. 356 live broadcasts in offline stores; 3. Reached the target group through social platforms and new media, and the topic exposure exceeded 900 million times. (3) Category expansion: In addition to sweeping robots, the company’s other categories of home robots also have outstanding performance. among them. The sales of air purification robot Qinbao increased by 11 times year-on-year, ranking first in the same category with more than RMB 3,000; window cleaning robot Chuangbao ranked first in the same category.
Timco brand: The turnover during the 618 period exceeded 900 million yuan, +1132% year-on-year. (1) Product: Tianke brand Fuwan floor scrubber is available on Tmall,Jingdong, Suning platform ranks first in the same category. The market share on the Tmall platform reached 76%. Although the 21H1 floor scrubber industry ushered in many new players, it did not affect the sales of Tianke, and Tianke’s market share remained above 70%. The total turnover of Tianke brand was 250,000 units, of which Fuwan washer 2.0 had a turnover of 140,000 units. (2) Channels: Tianke’s previous sales were mainly through online channels. During the 618 period, the offline channel transaction volume was 140 million yuan, accounting for about 15%. (3) Category expansion: Smart cooking machine Shiwan 2.0 is the first place in the same category on the first day of 618 Tmall’s new launch; Smart hair comb Xiuwan is the third place in the same category on Tmall.
Outlook 1 for the second half of the year-sweeping robots: technological iterations promote the increase in industry penetration, and the company continues to launch new products to maintain its leading edge. The industry will start a new round of technology dividend period in 2020, and the penetration rate will continue to rise. In 21Q1, the company launched two new products, T9 and N9+, and consolidated its leading edge by virtue of autonomous obstacle avoidance + mopping upgrade + base station functions. The company plans to launch a new generation of sweeping robot products in 21Q3, which is expected to detonate the market again. At the same time, the company is gradually upgrading its product structure in overseas markets and launching the cost-effective Yeedi brand in the domestic market. The product structure and channel layout of the company’s sweeping robot business are improving day by day.
Outlook 2 for the second half of the year-Tianke small household appliances: floor scrubbers are fully exploded, and floor cleaning appliances welcome changes. (1) Product iteration: The company launched new floor scrubber products Fuwan 2.0 and Fuwan slim in 21Q1 to consolidate product leadership. At present, the company also reserves products with more price ranges and more innovative functions to cope with industry competition in the second half of the year. (2) Global expansion: The scale of overseas floor cleaning appliances market is about 5 times that of China. In addition to North America, the company will increase its channel deployment in Europe and Asia Pacific in 21H2. (3) Category expansion: The company launched new products such as smart cooking machines, beauty instruments, and hairdressing combs. The company’s products are iterating fast. The smart cooking machine Shiwan 1.0 was launched in January this year, and it was iterated to Shiwan 2.0 in June.
Prospect 3 for the second half of the year-Commercial robots: The forward-looking layout has ushered in a harvest period, and commercial cleaning robots will be launched in May. The company has a forward-looking layout of the commercial robot business. Its previous products include interactive service robots, motion-carrying robots, and robot motion chassis. The company’s advantages in technology, brand, and scale will benefit the development of the commercial robot business. In May 2021, the company launched the commercial cleaning robot “Cheng Xi”. The product realizes the functions of integrated sweeping and washing, autonomous elevator riding, and edge cleaning. The target market is mainly residential public areas and office buildings. We expect that 21H2 will be able to see The first batch of orders for “Cheng Xi” landed.
Risk factors: (1) the risk of lower-than-expected market acceptance of new product sweeping robots; (2) the risk of increased competition in the washing machine business; (3) the risk of lower-than-expected progress in the commercial robot business.
Investment advice: The 618 sales data once again confirmed the market competitiveness of the company’s sweeping robots and scrubber products. In addition, considering that the company’s three major business sectors are expected to usher in performance resonance in the second half of the year, we have revised up the company’s net profit forecast for 2021/22/23 to 21.0/28.7/37.3 billion yuan (original forecast is 18.0/24.6/32.2 billion yuan). Considering the growth space of the company’s three business lines and the high certainty of the company’s performance growth in the next three years, we give the company a 50 times PE valuation for its 2022 performance, raise the target price to RMB 250, and maintain a “buy” rating.
(Article Source:CITIC SecuritiesCo., Ltd.)
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