\u3000\u30 Zhongyan Technology Co.Ltd(003001) 46 By-Health Co.Ltd(300146) )
Event: the company released its annual report for 2021. In 2021, the company achieved a revenue of 7.431 billion yuan, a year-on-year increase of + 21.93%; Excluding the influence of Maiyou’s consolidation, it was + 15.38% year-on-year; The net profit attributable to the parent company was 1.754 billion yuan, a year-on-year increase of + 15.07%; The net profit deducted from non parent company was 1.540 billion yuan, a year-on-year increase of + 34.59%. Among them, 21q4 achieved a revenue of 1.403 billion yuan in a single quarter, a year-on-year increase of + 32.06%; The net profit attributable to the parent company was 91 million yuan, a year-on-year increase of + 58.64%; The net profit deducted from non parent company was – 27 million yuan, a year-on-year increase of + 92.10%. Benefiting from the advance preparation of goods during the Spring Festival, 21q4’s revenue grew brightly.
In the past 21 years, domestic offline channels have been under pressure due to repeated epidemics and internal sales changes, and the growth rate of domestic online channels has taken the lead. By channel, in 2021, the company’s domestic offline / domestic online / overseas revenue was 4.2452358828 billion yuan, with a year-on-year increase of 8.58% / 45.88% / 41.34%. The domestic offline channel was affected by the repeated superposition of external epidemic and internal sales reform, and the growth rate was slow; The growth rate of domestic online channels is leading, mainly due to the growth rate of the company’s online direct sales revenue of 170.25%, while the distribution mode is greatly affected by traffic fragmentation and platform ecological changes, and the growth rate slows down.
The gross profit margin and sales expense rate increased year-on-year. In 2022, we will improve the “quality” and improve the profitability. The gross profit margin of the company increased to 66.06% in 2021, with a year-on-year increase of + 3.25pct, mainly due to the increase in the proportion of Maiyou consolidated income and online direct sales income. In 2021, the sales expense rate / management expense rate / R & D expense rate were 33.35% / 5.22% / 2.02% respectively, with a year-on-year increase of + 3.52pct / – 1.91pct / – 0.27pct. The increase of sales expense rate was mainly due to the increase of platform fees and marketing expenses in Maiyou’s consolidated statement. At the same time, the increase of the company’s direct revenue and the layout of multiple e-commerce platforms also led to the increase of platform expenses. The management expense rate was affected by wages and welfare expenses The cost of equity incentive decreased. Looking forward to 2022, the company’s business positioning will focus on “quality”, and the profit margin of online channels is expected to improve, driving the growth of the company’s overall profitability.
Life space, a large item, is growing rapidly, and may usher in a large volume in 2022. In 2021, By-Health Co.Ltd(300146) main brand / jianliduo / life space Chinese products / overseas LSG achieved a revenue of RMB 44.45/14.08/1.84/659 million, with a year-on-year increase of 24.36% / 7.46% / 36.33% / 16.20%. Life space Chinese products grew rapidly. The main brand benefited from Maiyou’s combined contribution, with a high growth rate. Jianliduo’s growth rate was relatively slow due to the influence of offline channels. Life space has a “big single product gene” with outstanding product power and large growth space of the track. It has experienced many years of cultivation since its acquisition in 2018. At present, it has a prominent strategic position in the company’s product matrix, or it will usher in a large amount after the recovery of the external environment and the improvement of internal changes in 2022.
Thousand people nutrition day group helped the channel recovery of pharmacies, and sports marketing became a new bright spot. On the channel side, drugstore channels have experienced multiple external disturbances such as medical insurance card policy adjustment, hundred day action and epidemic since 2019. The current policy impact is normalized. If the epidemic impact weakens in 2022, drugstore channels are expected to usher in marginal recovery. In addition, the company’s internal sales reform will be adjusted in place in the first half of 2022 to create a nutrition day group for thousands of people, promote terminal dynamic sales and help the growth of drugstore channels. On the brand side, By-Health Co.Ltd(300146) has signed a contract for the sports food and nutrition supplier of the Chinese national team from 2022 to 2025, and yep series has signed Gu ailing as the brand ambassador. The national team for the Winter Olympics and Gu ailing have made beautiful achievements, sports marketing has become a new bright spot, enabling the company’s “scientific nutrition” strategy.
Investment suggestion: we believe that the company leads the long-term development with the “scientific nutrition” strategy. At present, the inflection point of the drugstore channel has arrived. The large single product life space is expected to be in large quantity, and the brand is empowered by the new sports marketing. In 2022, the company has accumulated strength in the channel, product and brand, and is expected to accumulate a lot. It is estimated that the company will achieve revenue of 9.048/11.34/13.648 billion yuan from 2022 to 2024, with a year-on-year growth rate of 21.7% / 23.1% / 22.6% respectively; The net profit attributable to the parent company was RMB 2.093/2.590/3.182 billion, with a year-on-year growth rate of 19.3% / 23.8% / 22.9% respectively, and the corresponding EPS was RMB 1.23/1.52/1.87 respectively, maintaining the “buy” rating.
Risk tip: the competition of e-commerce channels intensifies; The promotion of new products is less than expected; Weak terminal consumption; Goodwill impairment risk
