CMB International Global Markets | Equity Research | Company Update Summary
Core Content Overview
This report provides an update on JS Global Lifestyle (1691 HK), focusing on its financial performance, market position, and valuation. The company is a subsidiary of China Merchants Bank, and the report maintains a BUY rating with an updated Target Price of HK$11.83.
Key Financial Performance Highlights
Revenue and Earnings
| FY |
Revenue (US$ mn) |
YoY Growth (%) |
Adjusted Net Profit (US$ mn) |
Adjusted EPS (US$) |
YoY Growth (%) |
| FY20A |
4,196 |
39.1 |
378 |
0.106 |
153.9 |
| FY21A |
5,151 |
22.8 |
464 |
0.130 |
22.8 |
| FY22E |
5,642 |
9.5 |
453 |
0.127 |
-2.3 |
| FY23E |
6,256 |
10.9 |
566 |
0.159 |
24.7 |
| FY24E |
6,822 |
9.1 |
643 |
0.180 |
13.7 |
- Revenue growth is expected to slow down in FY22E compared to FY21A, with a forecasted 9.5% YoY growth.
- Adjusted Net Profit (NP) is expected to decline slightly in FY22E, but will recover in subsequent years.
- Adjusted EPS is projected to increase steadily, with a 2.6% rise in FY22E and 2.4% in FY23E.
Sales and Market Share
- 1Q22 saw a 1.5% YoY decline in gross sales, attributed to a high base and supply constraints.
- However, sell-through and sell-in improved in 2Q22E, with strong rebound in March and April.
- Market shares increased in key categories:
- US: Cleaning (34.8%), Cooking (25.1%), Food Preparation (34.1%)
- UK: Vacuum Cleaners (30.3%), Food Preparation (15.1%), Electrical Cooking Pots (55.0%)
Guidance and Growth Drivers
- Management maintains FY22E guidance of ~10% sales and 10% net profit growth.
- 50% of sales growth is expected to come from new products, categories, and regional expansion.
- Margins are expected to improve in FY22E primarily due to tariff refunds, while ASP (Average Selling Price) remains stable.
Valuation and Peer Comparison
- The current stock price is HK$8.72, trading at 9x FY22E P/E, below the 5-year average of 17x and peers' average of 17x.
- Target Price is raised to HK$11.83, based on a 12x FY22E P/E.
- Valuation is considered cheap, with P/B at 1.2x (FY22E) and ROE at 17.0%.
Peer Valuation Comparison
| Company |
Ticker |
Rating |
12m TP (LC) |
Price (LC) |
Upside (%) |
Market Cap (HK$ mn) |
P/E (x) |
P/B (x) |
ROE (%) |
| JS Global |
1691 HK |
BUY |
11.83 |
8.72 |
35.6% |
30,473 |
8.8 / 7.1 |
1.3 / 1.0 |
14.3 |
| Joyoung |
002242 CH |
NR |
n/a |
15.55 |
n/a |
14,137 |
14.1 / 12.3 |
2.6 / 2.4 |
18.6 |
| Vesync |
2148 HK |
NR |
n/a |
5.63 |
n/a |
6,559 |
12.4 / 10.1 |
2.4 / 2.0 |
16.7 |
| Zhejiang Supor |
002032 CH |
NR |
n/a |
53.50 |
n/a |
51,282 |
19.0 / 16.7 |
5.0 / 4.3 |
26.7 |
| GD Xinbao |
002705 CH |
NR |
n/a |
17.31 |
n/a |
16,963 |
13.8 / 11.6 |
2.0 / 1.8 |
14.5 |
| Bear Electric |
002959 CH |
NR |
n/a |
51.24 |
n/a |
9,502 |
23.1 / 19.1 |
3.4 / 3.0 |
14.9 |
| Ecovacs Robotics |
603486 CH |
NR |
n/a |
102.50 |
n/a |
69,728 |
22.0 / 16.9 |
8.2 / 5.9 |
39.2 |
| Beijing Roborock |
688169 CH |
NR |
n/a |
572.00 |
n/a |
45,294 |
21.7 / 17.1 |
3.8 / 3.1 |
17.6 |
| Kingclean Electric |
603355 CH |
NR |
n/a |
22.18 |
n/a |
15,109 |
13.1 / 10.5 |
2.8 / 2.3 |
22.6 |
| Midea Group |
000333 CH |
BUY |
95.24 |
58.70 |
62% |
486,839 |
12.5 / 11.0 |
2.7 / 2.4 |
22.1 |
| Gree Electric |
000651 CH |
NR |
n/a |
34.22 |
n/a |
239,898 |
7.7 / 6.9 |
1.6 / 1.4 |
20.9 |
| Haier Smart Home |
600690 CH |
NR |
n/a |
26.49 |
n/a |
282,918 |
16.4 / 14.2 |
2.7 / 2.4 |
17.1 |
| Haier Electronics |
6690 HK |
BUY |
33.13 |
28.55 |
16% |
282,920 |
14.7 / 12.7 |
2.5 / 2.3 |
17.7 |
| Hisense Home |
921 HK |
NR |
n/a |
7.89 |
n/a |
16,494 |
7.3 / 5.8 |
0.8 / 0.7 |
12.3 |
| Hisense Home - A |
000921 CH |
NR |
n/a |
12.02 |
n/a |
16,493 |
13.1 / 10.5 |
2.8 / 2.3 |
22.6 |
| Whirlpool China |
600983 CH |
NR |
n/a |
58.70 |
n/a |
6,677 |
n/a / n/a |
n/a / n/a |
n/a |
| Hangzhou Robam |
002508 CH |
NR |
n/a |
31.10 |
n/a |
34,984 |
13.5 / 11.7 |
2.8 / 2.4 |
21.2 |
| Vatti Corporation |
002035 CH |
NR |
n/a |
5.40 |
n/a |
5,426 |
9.3 / 8.2 |
1.2 / 1.1 |
13.5 |
| Ecovacs Robotics |
603486 CH |
NR |
n/a |
102.50 |
n/a |
69,728 |
22.0 / 16.9 |
8.2 / 5.9 |
39.2 |
| Beijing Roborock |
688169 CH |
NR |
n/a |
572.00 |
n/a |
45,294 |
21.7 / 17.1 |
3.8 / 3.1 |
17.6 |
| Kingclean Electric |
603355 CH |
NR |
n/a |
22.18 |
n/a |
15,109 |
13.1 / 10.5 |
2.8 / 2.3 |
22.6 |
- JS Global is trading at a discount compared to peers, with P/E at 8.8x (FY22E) and P/B at 1.3x (FY22E).
- The P/E ratio is significantly below the 5-year average and peer average, indicating attractive valuation.
Financial Assumptions and Projections
Sales Growth by Brand
| Brand |
FY19A |
FY20A |
FY21A |
FY22E |
FY23E |
FY24E |
| Joyoung |
8.6% |
14.3% |
-1.9% |
8.0% |
8.9% |
7.8% |
| SharkNinja |
17.5% |
57.4% |
35.9% |
10.1% |
11.6% |
9.5% |
| Others |
-100.0% |
- |
- |
- |
- |
- |
| Total |
12.5% |
39.1% |
22.8% |
9.5% |
10.9% |
9.1% |
Sales Growth by Segment
| Segment |
FY19A |
FY20A |
FY21A |
FY22E |
FY23E |
FY24E |
| Cleaning |
5.6% |
50.4% |
15.5% |
1.1% |
8.7% |
7.5% |
| Food Preparation |
3.2% |
22.2% |
5.6% |
11.0% |
10.9% |
9.5% |
| Cooking |
37.4% |
41.6% |
41.8% |
18.5% |
14.0% |
11.0% |
| Others |
-2.7% |
29.4% |
45.6% |
2.9% |
2.0% |
1.5% |
Profit Margins
| Metric |
FY19A |
FY20A |
FY21A |
FY22E |
FY23E |
FY24E |
| Gross Margin |
37.4% |
41.5% |
37.4% |
38.6% |
38.6% |
38.8% |
| EBIT Margin |
7.7% |
15.0% |
12.0% |
12.0% |
12.9% |
13.5% |
| Net Profit Margin |
1.4% |
8.2% |
8.2% |
8.0% |
8.6% |
9.2% |
Key Ratios and Metrics
| Metric |
FY19A |
FY20A |
FY21A |
FY22E |
FY23E |
FY24E |
| P/E (x) |
10.6 |
8.6 |
8.8 |
8.8 |
7.1 |
6.2 |
| P/B (x) |
2.0 |
1.6 |
1.2 |
1.0 |
0.8 |
0.8 |
| ROE (%) |
2.7 |
17.9 |
17.0 |
14.3 |
13.7 |
13.7 |
| Yield (%) |
3.1 |
4.7 |
5.1 |
6.0 |
7.0 |
7.0 |
| Net gearing (%) |
18.3 |
Net Cash |
Net Cash |
Net Cash |
Net Cash |
Net Cash |
Conclusion
JS Global Lifestyle (1691 HK) is experiencing a slow start in FY22E due to supply constraints and high base effects, but sales and profit are recovering. The company is maintaining its guidance and is ramping up inventory to meet demand in the second half of FY22E. Margins are expected to expand due to tariff refunds, and the valuation is considered attractive at 9x FY22E P/E, below the 5-year average and peers' average. The target price is raised to HK$11.83, reflecting confidence in the company's future performance.
