\u3000\u3 Bohai Water Industry Co.Ltd(000605) 136 Shanghai Lily&Beauty Cosmetics Co.Ltd(605136) )
Event:
The company issued the 2021 annual report.
Key points of the report:
Affected by the switching of brand cooperation mode, the revenue is under pressure in the short term, and the profit side is growing steadily
In 2021, the company realized a revenue of 4.155 billion yuan, a year-on-year decrease of 9.67%, a net profit attributable to the parent company of 411 million yuan, a year-on-year increase of 20.99%, and a net profit not attributable to the parent company of 363 million yuan, a year-on-year increase of 17.32%. In 2021, the company's gross profit margin was 36.46%, year-on-year + 6.10pcts, sales / management / R & D / financial expense ratio was 20.12% / 2.96% / 0.27% / - 0.20%, year-on-year + 3.54 / + 0.79 / + 0.01 / - 0.15pcts, and net profit margin was 9.86%, year-on-year + 2.52pcts. The revenue and profit structure of the company has changed greatly, with both gross profit rate and net profit rate rising, which is mainly affected by the switching of brand cooperation mode (the proportion of high gross profit service fee mode is increased), the change of some brand cooperation terms (the company purchases at a lower discount and bears marketing expenses) and scale effect. In a single quarter, the revenue of q1-4 company was 755 / 11.00 / 645 / 1654 million yuan respectively, with a year-on-year increase of + 15.51% / - 4.38% / - 2.15% / - 22.56%, and the net profit attributable to the parent company was 0.44/1.61/0.56/149 million yuan, an increase of 5.01% / 49.06% / 35.76% / 0.96%.
Tiktok business is growing rapidly, and its own brand is emerging.
In terms of business, the company's retail business / marketing service business revenue in 2021 was 3.872217 billion yuan, a year-on-year increase of - 11.25% / + 8.85%, which was mainly affected by the transformation of Ponzi, vaseline and other brands from distribution to service fee mode, and the cooperation with the main brands snowflake show, post, frefangsi and yayang remained stable. In 2021, the company further consolidated its advantages in the field of beauty, reached cooperation with Coty, a luxury group, and reached cooperation intentions with Sofina brand under huawang in multiple e-commerce channels. The service brand covers various sub categories of beauty and multiple levels of high, middle and low end. By platform, tmall China / tmall global / other platforms earned 3.709/1.64/282 billion yuan, a year-on-year increase of - 14.78% / + 1.43% / + 228.51%. Among them, the business of vibrato tiktok has achieved rapid growth based on the original customer resources and strong marketing capabilities. The annual contribution income is about 200 million, which accounts for a continuous improvement. In addition, the company has seized new market opportunities and actively laid out its own brands. It has successively launched meiyitang, a skin care brand positioning moisturizing technology and repair, and yurongchu, a skin care brand focusing on plant skin care and targeting sensitive muscle groups. The revenue volume of its own brands will reach tens of millions in 2021.
Investment advice and profit forecast
The company is China's top beauty carrier head operator, and its electricity supplier has strong operational capability. In 2021, it actively explored the business of vibrato, steadily incubated its own brand, and invested in tiktok brand, and overall development was steady. We estimate that the company's net profit attributable to the parent company from 2022 to 2024 will be 458 / 510 / 564 million, EPS will be 1.14/1.27/1.40 yuan respectively, and the corresponding PE will be 18 / 17 / 15x respectively, maintaining the "buy" rating.
Risk tips
The growth rate of the industry slows down, the competition intensifies, and the head brand takes back the agency operation right risk.
