\u3000\u30 Zhongyan Technology Co.Ltd(003001) 46 By-Health Co.Ltd(300146) )
Event: on March 5, the company released its annual report for 2021. The annual revenue / net profit attributable to the parent company was RMB 7.431/1.754 billion, a year-on-year increase of + 21.93% / + 15.07%; Q4 achieved a revenue / net profit attributable to the parent company of RMB 1.403/91 billion, a year-on-year increase of + 32.06% / + 58.64%. The basic EPS in 2021 is 1.06 yuan.
The main business grew steadily, and Maiyou consolidated the table to slightly increase the income growth rate. The company’s revenue growth rate in 2021 was relatively stable. Excluding the factors of Maiyou consolidation, the revenue growth rate was + 15.38%, slightly lower than the target set in early 21. The growth rate of net profit attributable to the parent company was + 15.07%, which matched the income growth after excluding Maiyou.
By product, in 2021, Tomson’s main brand / jianliduo / LSG achieved revenue of 4.445/14.08/659 billion yuan respectively, with a year-on-year increase of + 24.36% / + 7.46% / + 16.20% respectively; Combined with Q4, the revenue was 802 / 252 / 163 million yuan, with a year-on-year increase of + 35.47% / + 10.04% / + 24.43% respectively. The revenue growth of Tomson’s main brands continued to be strong in 21 years; Large single product, strong and stable growth; LSG’s overseas business resumed growth with the relaxation of epidemic control. The annual revenue was RMB 18.3 billion / + 1.84 billion / life. Life space China business is accelerating its introduction. At present, it is ahead of its competitors in probiotics. It is expected to maintain rapid growth and become a core single product in the future. By channel, the offline channel revenue in 2021h1 accounts for about 64.29% of the domestic revenue, with a year-on-year increase of + 8.58%; Online revenue accounted for 35.71%, up + 45.88%. The company’s online revenue grew strongly and received good market feedback during the “double 11” period of 21 years. At the end of the year, the company had 1171 offline distributors, with a year-on-year increase of – 3.94%, including 1070 / 101 domestic / overseas distributors, with a year-on-year increase of – 4.89% / + 7.45%. The company’s offline distributor team was relatively stable and continuously optimized.
Affected by the increase in the proportion of online direct sales revenue, the gross profit margin improved significantly in 21 years. The gross profit margin of the company’s sales in 21 years was 66.06%, year-on-year + 3.25ppt (21q4 was 62.96%, year-on-year + 12.45ppt). The reason is that the proportion of online direct business income with relatively high gross profit margin increased to 17.22% (7.77% in the same period of 20 years).
In 2021, the company’s sales expense ratio was 33.35%, year-on-year + 3.52ppt (21q4 was 59.85%, year-on-year -17.57ppt), which was due to (1) the impact of the consolidation of Guangzhou Maiyou; (2) E-commerce platform fees and related brand promotion fees increased year-on-year. The management expense ratio was 5.22%, year-on-year -1.91ppt (21q4 was 7.34%, year-on-year -6.63ppt). The R & D expense ratio was 2.02%, year-on-year -0.27ppt (21q4 was 3.77%, year-on-year -2.41ppt). The financial expense rate was -0.41%, with a year-on-year rate of -0.62ppt (21q4 was -0.66%, with a year-on-year rate of -3.25ppt), which was due to the increase of interest income and the decrease of interest expenditure due to the repayment of loans.
Investment suggestion: it is estimated that the company will achieve a revenue of 9.132109.78/12.88 billion yuan and a net profit attributable to the parent company of 2.04/26.24/3.062 billion yuan in 22-24 years, equivalent to EPS of 1.30/1.54/1.80 yuan respectively. At present, the corresponding share price of PE in 22-24 years is 19 / 16 / 14 times. At present, the company’s 2022 valuation is equivalent to 20 times the overall valuation level of other food sectors (wind unanimously predicted that CITIC industry). As a leading enterprise in VDS industry, the company has strong scale advantages and brand effect, and its online business maintains rapid growth. In the future, the company’s new tablet and powder production capacity will be put on the market one after another, with good medium and long-term growth. To sum up, maintain the “recommended” rating.
Risk tips: the impact of the epidemic is more than expected, the offline expansion is less than expected, food safety problems, etc
