\u3000\u3000 Yunnan Botanee Bio-Technology Group Co.Ltd(300957) (300957)
Event overview. The company announced the performance forecast for 2021. It is expected to realize the net profit attributable to the parent company of RMB 820-890 million in 2021, with a year-on-year increase of 50.87% – 63.75%. Net profit deducted from non parent company is 770-840 million yuan, with a year-on-year increase of 50.20% – 63.85%. It is expected that Q4 will achieve net profit of 465-535 million yuan in a single quarter, with a year-on-year increase of + 42% – 63%, and net profit deducted from non parent company is 437-535 million yuan.
Single brand is far from the ceiling, and multi brand incubation is worth looking forward to. According to Euromonitor data, “Winona”, as an important brand of functional skin care products, has a market share of more than 20%, and ranks high in the sales of important e-commerce shopping festivals. The market was worried about whether a single brand can grow continuously and rapidly. However, according to the performance disclosed by the company and the situation of the industry, in sensitive muscle care products, component care products Under the joint education of dressings and mask products, the “cake” of efficacy skin care is expanding rapidly, and the matrix of Winona’s 14 series products is abundant. Under this background, Winona still has a large penetration space. It is expected that the double repair revival series and the Xiu Hong series will have greater breakthroughs in 2022. In terms of multiple brands: sub brand 1 – Winona baby21 radiated specific groups through the offline professional channels of yuezi club, entered the top 10 of tmall baby and child skin care category on double 11, and sub brand 2 – aoxmed positioned high-end. It is expected to enter the market in May through medical and beauty channels. It is worth noting that the two brand companies adopt the offline radiation online mode. We believe that this mode ensures their professional brand tone on the one hand, and higher pricing on the other hand. The overall profitability of the company is expected to be further improved.
Make strategic adjustment of decentralization in advance and Wuxi Online Offline Communication Information Technology Co.Ltd(300959) further explore. Online: tiktok combined with the same force, strategic adjustment ahead of schedule, the 1-3 quarter of last year, the online platform to centralization effect is obvious, Tmall’s overall 1-3 quarter overall proportion is expected to lower to 50% of the total income, Tmall shake the whole live master ratio, including the head waist, not more than 30% online. Offline: 1) in addition to further developing Watsons and improving the output of single stores, the company gradually launched the image store of beauty brand. In December, the first image store officially opened in Hangzhou Yintai beauty store. It is expected to open brand image stores in less than 10 first and second tier cities in 2022 to strengthen the interaction of Wuxi Online Offline Communication Information Technology Co.Ltd(300959) members and the closed loop of o2o; 2) OTC: join hands with Yunnan Jianzhijia Health-Chain Co.Ltd(605266) again to focus on the operation of its offline members in Southwest China, breaking through the situation that the whole offline traffic depends on 500 counters to add the traffic entrance end.
Hainan Yunnan Botanee Bio-Technology Group Co.Ltd(300957) Private Fund Management Co., Ltd. was established to take the lead in Yunnan plant laboratory. The company will actively seek extension investment in upstream and downstream related projects. Regarding Yunke’s plant laboratory in Yunnan Province, it is expected to be industry-oriented, focus on using the resources of Yunnan characteristic plants, make industrial R & D breakthroughs in functional skin care products, functional foods and future drugs, and drive the development of local plant industry, In the future, the company is expected to build it into an internal R & D service expansion platform.
Investment suggestion: the card position effect, skin care, medical and American double prosperity track, the integration of industry, University and research, product power + channel power + operation capacity, and the comprehensive ability is strong. We expect that the company’s revenue will increase by more than 50% year-on-year in 21 years. It is expected that the company’s EPS will be 2.04, 2.83 and 3.79 yuan from 2021 to 2023, with corresponding PE of 79, 57 and 43x, maintaining the “recommended” rating.
Risk tip: brand incubation is not as expected
