Profit growth slowed down in the first three quarters of Anker Innovation, and the stock price hit a record low after cutting off

Reporter | Xu Shiqi

Edit |

Anker Innovation (300866. SZ) announced its first three quarter results on October 27.

In the third quarter, Anker Innovation achieved revenue of 3.055 billion yuan, an increase of 22.63% year-on-year, and net profit of 237 million yuan, down 7.4% year-on-year. From the first three quarters, the company achieved revenue of 8.425 billion yuan, an increase of 39.99% year-on-year; achieved a net profit of 646 million yuan, an increase of 21.17%. Despite maintaining performance growth, the company's revenue and profit growth rate is declining.

Anker Innovation is a consumer electronics company specializing in charging, wireless audio and other products, including charging treasures, TWS headphones, etc., with high sales in overseas markets, especially in the United States, and is a representative of cross-border e-commerce. The company went public in August 2020.

During the intraday session on October 28, the company's stock price touched 90.9 yuan, a record low. As of the close, the stock price was reported at 92.92 yuan / share, down 7.94% on the day, and the company's current total market value was 37.77 billion yuan.

In the third quarter, Anker Innovation's attributable net profit showed negative growth, down 7.4% year-on-year, and deducted non-net profit fell by 16.15% year-on-year. The company said that this was mainly due to the increase in raw material prices and high shipping costs in the quarter, which affected the company's profits. In the current period, the company's cash flow from operating activities turned from positive to negative, down 384.04% year-on-year, which was also caused by the increase in product stockpiling and freight expenses. In terms of inventory, the company's inventory in the current quarter increased by 90.1% year-on-year, mainly because the third and fourth quarters were the peak season for consumer electronics sales, and the company took the initiative to increase inventory.

From january to September, the company achieved overseas revenue of 8.143 billion yuan from January to September, an increase of 36.91% year-on-year, accounting for 96.65% of the total revenue; and achieved domestic revenue of 282 million yuan, an increase of 296.76% year-on-year, accounting for 3.35% of the total revenue.

In May this year, Anker Innovation said at the first domestic press conference that it would vigorously develop the domestic market, and the cost of brand building and other costs for the domestic market also increased accordingly. At present, this strategy has achieved results, and the company's domestic revenue in the first three quarters increased by 296.76% year-on-year, but the proportion of total revenue is still very small. In addition, according to the team at the time, the domestic sales target of Anker Innovation this year may be 600-700 million yuan. As current, it may be harder for companies to meet their targets this year.

By channel, from January to September, the company's online channel revenue was 5.422 billion yuan, accounting for 64.67% of the main business income; offline channel revenue was 2.962 billion yuan, accounting for 35.33% of the main business income, an increase of 5.14 percentage points over the same period last year. Previously, Anker Innovation mainly relied on the sales of online channels, and with the construction of offline channels, the gap between the revenue of the two channels is narrowing.

From the perspective of the cross-border e-commerce industry as a whole, the performance of listed companies in the industry in the third quarter showed a situation of "ice and fire". The performance of Anker Innovation stands in stark contrast to other companies.

The well-known cross-border e-commerce brand "Youshu" was seriously affected by Amazon's suspension, and its parent company Tianze Information reported that the company lost 1.156 billion yuan in the first three quarters. Huading Shares, the parent company of another brand, Tongtuo Technology, lost 22.35 million yuan in non-net profit in the third quarter, down 146.02% year-on-year, and the company said that the main reason was due to the loss of the cross-border e-commerce sector due to the Amazon incident and the impact of Vat tax in Europe.

Since the stock price of Anker Innovation rushed to a record high of 204.04 yuan / share in January this year, it began to fluctuate and fall, and as of now, the stock price has been cut, and the market value has evaporated by more than 45 billion yuan.

However, CICC still said it maintained its outperformance industry rating after the third quarter report of Anker Innovation, with a target price of 180.3 yuan.