On January 3, health products giant By-Health Co.Ltd(300146) (300146) put forward the annual performance forecast for 2021. The company’s forecast profit in 2021 was about 1.6 billion yuan – 1.905 billion yuan, a year-on-year increase of 5% – 25%, and the net profit in the same period of last year was 1.524 billion yuan.
By-Health Co.Ltd(300146) frankly, in July, the company launched offline sales reform and Wuxi Online Offline Communication Information Technology Co.Ltd(300959) integrated operation related reform, which brought certain pressure and challenges to the company and relevant parties in the short term. Among them, the growth rate of the company’s domestic offline business income is lower than expected; Domestic online business revenue has achieved rapid growth; The revenue of overseas life space Group Pty Ltd has increased to a certain extent. Based on this, the company expects a certain increase in annual performance compared with the same period last year.
It is worth noting that the annual performance forecast is in line with the previous consensus forecast of By-Health Co.Ltd(300146) . The data show that in the past 180 days, 11 institutions have given performance forecasts for By-Health Co.Ltd(300146) , and the net profit attributable to the parent (consistent forecast) is 1.774 billion yuan, of which the largest forecast data of Huachuang Securities for the company’s net profit attributable to the parent is 1.995 billion yuan, and the smallest forecast data of Huatai Securities Co.Ltd(601688) for the company’s net profit attributable to the parent is 1.631 billion yuan.
expected annual performance growth
In the performance forecast announcement, By-Health Co.Ltd(300146) said that in 2021, the company will fully implement the scientific nutrition strategy, practically promote the established business plans, continue to promote business innovation and key projects, and constantly build new core competitive advantages.
In July, the company launched changes related to offline sales and Wuxi Online Offline Communication Information Technology Co.Ltd(300959) integrated operation to support the company’s healthier and sustainable development strategy and bring certain pressure and challenges to the company and relevant parties in the short term. In this regard, By-Health Co.Ltd(300146) it is estimated that during the reporting period, the growth rate of the company’s domestic offline business income is lower than expected; Domestic online business revenue has achieved rapid growth; The revenue of overseas life space Group Pty Ltd (hereinafter referred to as “LSG”) has increased to a certain extent. Based on this, the company expects a certain increase in annual performance compared with the same period last year.
In addition, By-Health Co.Ltd(300146) the amount of non recurring profit and loss in 2020 is RMB 380 million. It is estimated that the impact of non recurring profit and loss on net profit in 2021 will be between RMB 200 million and RMB 220 million, mainly due to the government subsidies received by the company during the reporting period, the profit and loss from changes in fair value of financial assets held by the company during the reporting period and investment income.
It is worth noting that in the second half of this year, By-Health Co.Ltd(300146) launched the channel adjustment strategy concerned by the industry, that is, Wuxi Online Offline Communication Information Technology Co.Ltd(300959) integrated operation mechanism.
In the 2021 semi annual report, By-Health Co.Ltd(300146) mentioned that from July 2021, the company officially launched offline sales reform and Wuxi Online Offline Communication Information Technology Co.Ltd(300959) integrated operation related reform to support the company’s healthier and sustainable development strategy. The above changes are expected to last until the first half of 2022.
channel adjustment is concerned
The adjustment of sales channels also affected the current performance of By-Health Co.Ltd(300146) . On October 25, By-Health Co.Ltd(300146) announced that in the first three quarters, the operating revenue was 6.029 billion yuan, a year-on-year increase of 19.79%; The net profit attributable to the parent company was 1.663 billion yuan, a year-on-year increase of 13.37%.
By brand, the main brand ” By-Health Co.Ltd(300146) ” achieved a revenue of 3.643 billion yuan, a year-on-year increase of 22.01%; The joint care brand “jianliduo” achieved an income of 1.156 billion yuan, a year-on-year increase of 6.57%; The revenue of “life space” Chinese products was 165 million yuan, a year-on-year increase of 26%. By channel, in the first three quarters, By-Health Co.Ltd(300146) offline revenue accounted for about 69.24% of domestic revenue, with a year-on-year increase of 5.51%; However, online channel revenue increased by 57.79% year-on-year.
However, the performance of By-Health Co.Ltd(300146) in the third quarter fell year-on-year, and the current revenue was 1.831 billion yuan, down 4.02% year-on-year; The net profit was 292 million yuan, a year-on-year decrease of 42.23%. In this regard, By-Health Co.Ltd(300146) said that in July, the company officially launched changes related to offline sales and Wuxi Online Offline Communication Information Technology Co.Ltd(300959) integrated operation, which brought certain pressure and challenges to the company and relevant parties in the short term.
It is worth noting that the sales channel adjustment of By-Health Co.Ltd(300146) has also attracted great attention of the organization. At the performance presentation meeting of the third quarterly report held on October 26, By-Health Co.Ltd(300146) channel change’s impact on offline sales and dealer feedback were mainly asked.
By-Health Co.Ltd(300146) frankly, the offline sales reform at this stage focuses on brand and market standardized management, which will have a certain impact on internal teams and external dealers in the short term. In the long term, the company hopes to further upgrade and consolidate the terminal dynamic sales service system, “Sales reform brings incremental benefits to channels and retail terminals by combing sales and gift matching policies and innovating dynamic sales and service modes, and supports the company’s healthier and sustainable development strategy. In the short term, internal and external teams will be under pressure, and retail terminals will also be affected.”
In addition, the company will take a longer-term approach to bring incremental benefits to the industry and channels, rather than the short-term principle of “quantity” for “quality” or brand overdraft. Short term dealers will be under pressure, and the company will continue to empower dealers to enhance confidence in medium and long-term development.
Huatai Securities Co.Ltd(601688) believes that the company’s launch of sales and operation mechanism reform in July has brought certain pressure and challenges to short-term operation (the impact is expected to continue to 22h1), and the repeated epidemic in some areas of Q3 has also had an impact. In the long run, the digitization of the whole marketing link brought about by the offline sales reform will help to strengthen the standardized management of the brand and the market, Wuxi Online Offline Communication Information Technology Co.Ltd(300959) integrated reform will help to establish the overall mechanism and collect resources at the group level. If the model runs through, it will help to support the upward trend of profit margin.
Everbright Securities Company Limited(601788) believes that changes need to break the current situation and make new attempts, which will bring some pressure on the company’s performance in the short term. In the long run, Wuxi Online Offline Communication Information Technology Co.Ltd(300959) integration reform focuses on internal resource allocation, and the running mode is conducive to the overall arrangement of resources within the group, which will have a positive impact on the company’s profit margin at that time.
(Securities Times · e company)
