DBS: JS Global Lifestyle Co Ltd – Buy Target Price HK$11.10
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<Earnings first take> JS Global (1691 HK) – 1H22 results saw net profit down by 16.9%, below market expectations
JS Global reported 1H22 revenue of US$2,232m, down by 0.3% y-o-y
1H22 gross profit showed a decline of 5% y-o-y to US$862m, with a GP margin of 38.6%, 2ppts lower than 1H21’s 40.6% while around 4ppts higher than 2H21’s 34.9%
Affected by the significant regional expansion and related headcount increases, the net profit declined by 16.9% to US$181m, and net profit margin dipped by 1.6ppts from the previous year to 8.1% (1H21: 9.7%)
What’s New
JS Global reported 1H22 revenue of US$2,232m, down by 0.3% y-o-y. SharkNinja segment accounted for US$1,593m of revenue, a slight decline of 0.2% y-o-y, representing 71.4% of the Group’s total revenue; Joyoung segment decreased by 0.6% to US$639m, representing 28.6% of Group’s total revenue.
Cleaning appliances remained the Group’s largest product category, with a revenue contribution of 39.2% in 1H22 (1H21: 38.7%), growing by 1.1% y-o-y to US$875m. The cooking appliance segment and food preparation appliance segment experienced slight decreases of 2.2% and 2.7%, accounting for 34.4% and 21.2% of total revenue, respectively.
Both the North America market and China market saw a 0.6% y-o-y revenue decline to US$1,254m and US$623m, accounting for 56% and 28% of total revenue, respectively. The revenue generated from Europe was US$264m, a y-o-y drop of 5.8%. However, driven by expanding market share in Japan as well as strong sales through 3rd-party distributors, the revenue generated from other markets showed a y-o-y growth of 28.5% to US$92m.
1H22 gross profit scored a 5% decrease to US$862m, with a GP margin of 38.6%, 2ppts lower than 1H21’s 40.6% while around 4ppts higher than 2H21’s 34.9%.GP margins of SharkNinja and Joyoung scored 41.8% (1H21: 43.4%) and 30.9% (1H21: 33.6%), respectively.
EBIT scored around an 11.3% decrease to US$234m, with an EBIT margin of 10.5% (1H21: 11.8%).
Affected by the siginificant regional expansion and related headcount increase, the net profit declined by 16.9% to US$181m and net profit margin dipped by 1.6ppts from the previous year to 8.1% (1H21: 9.7%).
We currently have a BUY rating over the counter.
More to follow after the company’s result briefing to be held at 9am tomorrow.
