R&T Half-Yearly Report: Net Profit Increased By 40.8%. Revenue Of Smart Toilets And Covers Increased By 21.65%

R&T Half-Yearly Report: Net Profit Increased By 40.8%. Revenue Of Smart Toilets And Covers Increased By 21.65%

In the evening of August 24, Xiamen R&T Sanitary Technology Co., Ltd. released its semi-annual report for 2022. The report shows that R&T achieved revenue of RMB901 million in the first half of 2022, an increase of 12.11% year-on-year. Net profit attributable to shareholders of the listed company was 83,424,400 yuan, an increase of 40.8% year-on-year. Among them, intelligent toilet and cover products achieved revenue of RMB 411 million, an increase of 21.65% year-on-year.

Smart toilet and cover products achieved revenue of 411 million

Year-on-year growth of 21.65%

In the first half of 2022, R&T’s smart toilets and covers business continued to grow strongly. The revenue achieved was RMB 411 million, an increase of 21.65% year-on-year. The business accounted for 45.64% of the company’s total operating revenue.

In addition, the financial report shows that R&T specializes in the research and development, production and sales of intelligent sanitary products subsidiary – Xiamen a little intelligent technology Co. In 2022, the operating income in the first half of the year reached 275 million yuan, and the operating profit reached 14.48 million yuan.

In recent years, R&T has continued to increase its investment in intelligent sanitary ware. As early as 2020, R&T terminated the “Yangming Road bathroom accessories production base renovation and expansion project” and implemented the “annual production capacity of 1.2 million sets of intelligent bathroom products production base construction project” by the company’s wholly-owned subsidiary, Xiamen One Point Intelligent Technology Co. As of the end of the period, the cumulative investment of the project has reached 83.67 million yuan, and the progress of the project is 16.97%. It is expected that R&T’s revenue in the intelligent sanitary ware segment will continue to increase after the project is completed and put into operation.

Unit: Yuan

In addition to intelligent sanitary ware, R&T’s main products also include water tanks and accessories products, as well as the same layer drainage system products. In the first half of 2022, the water tanks and accessories business achieved revenue of $368 million. This represented a 0.07% year-over-year decrease and accounted for 40.9% of the company’s total revenue. The revenue achieved by the business related to homogeneous drainage system products was $79,943,500, an increase of 19.55% year-on-year.

R&T conducts both domestic and offshore businesses. In the first half of 2022, the revenues of the two businesses were NT$596 million and NT$305 million, accounting for 66.17% and 33.83%, respectively. Both of them increased by more than 10%.

Net profit increased by 40.8% year-on-year

Gross profit margin of the main business increased compared with the previous year

In terms of earnings, in the first half of 2022 R&T achieved an increase in profit and revenue, with net profit attributable to shareholders of the listed company reaching 83,424,400 yuan, an increase of 40.8% year-on-year. The net profit attributable to shareholders of the listed company after non-recurring gains and losses was RMB 75,930,200, an increase of 52.26% year-on-year, which was a significant increase.

In terms of gross margin, in the first half of 2022, it achieved an increase in the gross margin of its main business, reaching 25.29%, up 2.08% from the same period of the previous year. Among them, the gross profit margin of water tank and accessories business increased by 2.7% compared with the previous year. The smart toilet and cover business had the largest increase, reaching 4.58%.

Unit: Yuan

In the first half of 2022, a number of R&T’s expenses changed significantly. Among them, finance costs amounted to -25.27 million, a decrease of 812.8% compared to the previous year, mainly due to the impact of exchange rate changes. Income tax expense reached RMB 13,292,100, an increase of 124.66% year-on-year. This was mainly due to the increase in profit. Its R&D expenses amounted to RMB35,581,400, an increase of 55.75% year-on-year, due to the increased investment in R&D of home products. It is worth mentioning that in May this year, R&T added 1 new foreign investment in an enterprise named Xiamen Shui Ai Intelligent Home Co. The investment is 20 million yuan, and its main business is the manufacture, research and development, and sales of household products, sanitary ware, etc.

Unit: Yuan

In addition, R&T revealed that the company is well known in the industry in the water-saving flushing components segment, including ROCA, INAX, KOHLER, American Standard, Arrow, Bolina and other well-known domestic and foreign manufacturers of medium and high-end sanitary ware brands have established good and stable cooperative relationships with the company.

R&T’s performance in the first half of 2022 was bright. In terms of revenue, although the 12.1% increase is not too big, it is particularly rare in the context of the rebound of the epidemic and the downward spiral of the property market. In contrast, many domestic counterparts saw a decline in revenue in the first half of the year. Some companies even decreased by more than 10%. At the earnings level, R&T’s first-half net profit has recovered and exceeded the level of the same period in 2019 before the epidemic, and the increase has continued to expand. This reflects good corporate profitability.

On August 25, a securities company gave R&T a “buy” rating, for the following reasons: First, the intelligent toilet performance is beautiful. On-hand orders are sufficient. Second, Q2’s profitability improved significantly, and good control of expenses. Obviously, this is also the capital market’s objective evaluation of R&T’s performance in the first half of the year.