\u3000\u3 Bohai Water Industry Co.Ltd(000605) 136 Shanghai Lily&Beauty Cosmetics Co.Ltd(605136) )
Performance review
3.2 it was announced that the revenue in the 21st year was 4.155 billion yuan, down 9.67% at the same time, mainly due to the overall slowdown of the market and the conversion of some brand retail models of the company to service models, with a net profit attributable to the parent company of 411 million yuan, an increase of 20.99% at the same time. The net interest rate was 9.89% (+ 2.51pct), mainly due to the decrease of sales expense rate, the slight increase of gross profit rate and the narrowing of the proportion of asset impairment loss in revenue. It is proposed to distribute a cash dividend of 0.21 yuan per share (including tax). The first unlocking condition of the equity incentive plan was reached, and 448500 restricted shares were lifted.
Quarter by quarter, the revenue growth rate of 1 ~ 4q21 was 15.51% / – 4.38% / – 2.15% / – 22.56% respectively, and the growth rate of net profit attributable to parent company was 5.01% / 49.06% / 35.76% / 0.96% respectively.
Business analysis
Tmall platform has a stable customer relationship and has added Coty group and huawang Group brands in 21 years. The company has reached strategic cooperation with Coty group to provide fine operation services for luxury beauty brands such as Burberry, macjacobs and philosophy; New Sophie brand Tmall flagship store, tiktok and little red book.
Tiktok is active layout, excellent brand cooperation. Tiktok ran Freeplus tiktok / Avene /Kate/ / Avene / tiktok and other brands by the end of 21, and won the 21 year “brand service provider of the year’s”.
Actively incubate private brands and invest in cutting-edge brands. 1) In the past 21 years, meiyitang, a gentle moisturizing and repairing brand, and yurongchu, a sensitive muscle plant skin care brand, have been launched successively; 2) Invest in the body care brand Queli bathroom, which focuses on probiotics and positioning the skin micro ecology, and the high-end makeup + skin care brand exacting, and also participate in venture capital / industrial funds focusing on large consumption fields such as Yuanchuang enterprising, Baojie huishanqi and Jingru investment.
The gross profit margin increased slightly and the expense rate decreased. In the 21st year, the gross profit margin was 36.46% (+ 0.55pct), the sales expense rate was 20.12% (- 2.01pct), the management expense rate was 3.22% (+ 0.80pct), and the asset impairment loss was 65.57 million yuan (including 60.32 million yuan of inventory falling price loss). Inventory turnover 144 days (+ 60 days), accounts receivable turnover 12 days (+ 3.5 days).
Investment advice
The company still maintains strong profitability under the background of high cost of online traffic, brand assets, strong and strong tiktok, and actively expand the vibrant voice and other emerging platforms / incubators to open up their own growth space. The 22~24 EPS is 1.15/1.27/1.38 yuan in the year of 22, corresponding to the PE of 18 years, and the “buy” rating is maintained.
Risk tips
Inventory impairment loss, loss of key customers of international brands, marketing launch less than expected, etc.
