\u3000\u30 Zhongyan Technology Co.Ltd(003001) 46 By-Health Co.Ltd(300146) )
Event:
The company released its annual report for 2021. The company achieved an annual operating revenue of 7.431 billion yuan, a year-on-year increase of 21.93%; The net profit attributable to the parent company was 1.754 billion yuan, a year-on-year increase of 15.07%.
Comments:
The main brand has made steady efforts and the overseas market welcomes recovery
By product, the main brand / jianliduo / life space achieved revenue of 4.445/14.08/184 billion yuan respectively, with a year-on-year increase of 24.36% / 7.46% / 36.33% respectively. In terms of subregions, domestic / overseas businesses achieved revenue of RMB 6.604828 billion respectively, with a year-on-year increase of 19.86% / 41.34%. In terms of channels, domestic online / offline businesses increased by 10.39% and 8.60% respectively year-on-year.
Cost control promotes the increase of gross profit, and the increase of marketing expenses leads to the decline of net profit
The gross profit margin of the company's sales in 2021 was 66.06%, an increase of 3.24% over the same period last year, and the gross profit margin of various categories increased to varying degrees. Q4 company continued to increase its marketing efforts, resulting in the annual sales expense rate of 33.35%, an increase of 3.51% over the same period last year, which reached a new high since the company was listed, and the overall net profit margin fell by 1.56% to 23.77%.
The market share has increased steadily, and we will build a strong science and technology enterprise in the new eight years
According to Euromonitor data, By-Health Co.Ltd(300146) ranked first in the field of dietary nutritional supplements with a market share of 10.3% in 2021. The company has become a supplier of sports food and nutrition for the Chinese national team, and has successfully made a breakthrough in the field of anti-aging through cooperation with many parties. Based on the development in 2021, the company officially proposed to transform into a strong science and technology enterprise, and plans to launch an original high-tech heavy function product every 2-3 years.
Profit forecast and investment suggestions
Recently, the recovery trend of drugstore channel terminals is obvious, and new technology functional products will further consolidate the company's leading position in the field of VDS. According to the annual report of 2021, we adjusted the company's revenue from 2022 to 2024 to RMB 9.09/11.031/13.252 billion (the original forecast of 22-23 was RMB 9.844/11.980 billion), with a year-on-year increase of 22.32% / 21.35% / 20.13% respectively, and adjusted the net profit attributable to the parent company from 2022 to 2024 to RMB 2.37/25.81/30.56 billion (the original forecast of 22-23 was RMB 2.109/2.453 billion), with a year-on-year increase of 21.84% / 20.76% / 18.42% respectively The corresponding EPS is 1.26/1.52/1.80 yuan respectively; PE corresponding to the current share price is 20 / 16 / 14 times respectively. According to the valuation of comparable companies, we give the company 25 times PE for 22 years, corresponding to the target price of 31.50 yuan, maintaining the "buy" rating.
Risk tips
Overseas business expansion is less than expected; Strict industrial policy supervision; Food safety risks, etc
