\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 315 Shanghai Jahwa United Co.Ltd(600315) )
In the 21st year, the income and net profit attributable to the parent company increased by 8.73% and 50.92% respectively year-on-year, and the profit exceeded the incentive target
The company released its annual report for 2021, which achieved an operating revenue of RMB 7.646 billion, a year-on-year increase of 8.73%, a net profit attributable to the parent of RMB 649 million, a year-on-year increase of 50.92%, and a net profit not attributable to the parent of RMB 676 million, a year-on-year increase of 70.76%. EPS0. 97 yuan, with a cash dividend of 0.29 yuan per share (including tax). Compared with the previously released stock option incentive target for 2021 (revenue target of RMB 7.752 ~ 8.466 billion in 2021 and net profit attributable to parent of RMB 430.5 ~ 504 million), the revenue side was slightly lower than expected, but the net profit attributable to parent significantly exceeded the target.
The growth rate of net profit attributable to the parent company was higher than that of revenue, mainly due to the contribution of the improvement of gross profit margin. The gross profit margin increased by 2.84pct to 58.73% year-on-year in 21 years (compared with that after reclassifying transportation expenses to operating costs in 20 years), and the net profit attributable to the parent company increased by 2.37pct to 8.49% year-on-year.
Quarterly, the company’s operating revenue from 2021q1 to Q4 was + 27.04%, + 3.73%, – 3.41%, + 8.71% year-on-year respectively, and the net profit attributable to the parent company was + 41.92%, + 81.69%, + 4.60%, + 93.75% year-on-year respectively.
The revenue of skin care products increased by 22.22% year-on-year, and the proportion of revenue increased by nearly 4pct
By category: skin care products (including baicaoji, Yuze, Diancui, Goff, Shuangmei and meijiajing) achieved an operating revenue of 2.697 billion yuan, a year-on-year increase of 22.22%, accounting for 35.31% of revenue and a year-on-year increase of 3.91 PCT; The operating revenue of individual care products (including Liushen, Jiaan, etc.) was 2.41 billion yuan, with a year-on-year increase of 0.42%, accounting for 31.55% of the revenue and a year-on-year decrease of 2.59 PCT; The operating revenue of mother and child categories (Qichu and Tang Meixing) was 2.158 billion yuan, with a year-on-year increase of 4.18%, accounting for 28.25% of the revenue and a year-on-year decrease of 1.22 PCT; Cooperative brands ( Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) , aihemei, bitis and Fangxin) earned 373 million yuan, with a year-on-year increase of 6.48%, accounting for 4.89% and a year-on-year decrease of 0.10pct.
In terms of brands: among skin care products, baicaoji’s revenue growth rate exceeded 30%, Yuze’s growth rate exceeded 20%, Diancui’s growth rate exceeded 35%, Shuangmei’s growth rate exceeded 15%, goufu’s growth rate exceeded 15%, and meijiajing’s growth rate was close to 10%; In the category of gehujiaqing, Liushen achieved high single digit growth, and Jiaan fell by about 13% under the influence of special canal; Among the categories of mothers and infants, the growth rate at the beginning of the year exceeded 20%, and the growth rate of overseas business mayborn fell by about 2% due to the influence of international supply chain.
In terms of channels, the overall online and offline revenue of the company (including China and overseas) in 21 years was 3.211 billion yuan and 4.427 billion yuan respectively, accounting for 42.04% and 57.96% respectively, with a year-on-year increase of 7.87% and 9.26% respectively. In China’s business, the revenue of China’s online channels (including e-commerce and special channels) in 21 years was 2.501 billion yuan, accounting for 42.79% (accounting for the proportion of China’s business, the same below), of which the revenue of e-commerce accounted for 33.12%, the revenue increased by about 20% year-on-year, the revenue of special channels accounted for 9.67%, and the revenue decreased by more than 15% year-on-year; China’s offline channel revenue was 3.344 billion yuan, accounting for 57.21%, of which the revenue of supermarkets, department stores and cosmetics stores accounted for 43.47%, 8.09% and 5.65% respectively. The revenue of supermarkets achieved high single digit growth year-on-year, the growth rate of department stores exceeded 40% and the growth rate of CS channels exceeded 35%.
The increase in gross profit margin benefits from the optimization of category structure, the stability of expense rate and the optimization of cash flow
Gross profit margin: the gross profit margin of the company was 58.73% in 21 years, with a year-on-year increase of 2.84pct, mainly due to the rapid growth and proportion of high gross profit skin care products, and all brands of the company attach importance to focusing on high gross profit head products, which has significantly improved the operating efficiency. By category, the gross profit margins of skin care, gehujiaqing, mother and baby and cooperative brands were 71.23% (year-on-year + 3.03pct), 55.14% (+ 1.70pct), 51.09% (+ 2.19pct) and 36.55% (-0.09pct) respectively.
Expense rate: during the 21 years, the expense rate of the company was 51.18%, with a year-on-year increase of 0.75pct, of which the expense rates of sales, management, R & D and finance were 38.54% (year-on-year + 1.02pct), 10.34% (+ 0.09pct), 2.13% (+ 0.08pct) and + 0.16% (- 0.45pct) respectively.
Other financial indicators: 1) the company’s inventory at the end of the year 21 was 872 million yuan, an increase of 0.64% over the beginning of the year 21; Inventory turnover days were 99 days, down 11 days year-on-year.
2) the accounts receivable at the end of the year 21 was 1.109 billion yuan, an increase of 1.78% over the beginning of the year 21; The turnover days of accounts receivable were 52 days, with a year-on-year decrease of 3 days.
3) the company’s net operating cash flow in the past 21 years increased by 54.34% year-on-year to RMB 993 million.
In 2021, the growth of main business is ideal, and the 123 business policy has achieved remarkable results
In 2021, the company will continue to focus on the “123 business policy”, focus on consumers, innovate brands and improve channels, and make continuous efforts in culture, system and process and digitization.
1) brand innovation: the company continues to increase R & D, patent applications and mainstream journal papers have achieved substantial improvement in quantity and quality, and the new product development cycle has been shortened from 12 months to 8.5 months. At the same time, raw materials, recipes, processes and packaging have been applied in new products, such as Herborist new Tai Chi series, Maxam fermented rice essence, jade copper blue peptide extract, etc. At the same time, the company focused on explosive products and streamlined SKUs. The company’s own brand aggregation increased from 56% in 2019 to 71% in 2021, and effectively improved the repurchase rate. In 21 years, the repurchase rate of baicaoji tmall flagship store and department store was 41.61%, up 7.88pct year-on-year, and the repurchase rate of Yuze tmall flagship store was 42.58%, up 6.22pct year-on-year.
2) channel upgrading: the company realizes multi platform layout online through fine methods, gets rid of the dependence on a single platform, increases store self broadcasting and member operation, and reduces the dependence on super head. At the same time, Tequ business starts to expand multi platforms and is expected to stabilize and rise in the second half of 22 years. In addition, the company has increased the layout of new retail business offline and promoted the transformation of intelligent retail business offline (the proportion of intelligent retail has exceeded 10% of offline channels and the growth rate has exceeded 100%), the department store channel has turned losses into profits, and the profitability of CS channel has been improved by making efforts to Watson.
3) digital transformation: the company promotes the combination of marketing mode and digital technology, and actively promotes the construction of private ecology.
It is expected that the business will continue to improve in 2022 and the old domestic goods group will continue to revive
In 2021, the company focused on key businesses such as skin care products and e-commerce channels, and achieved good results. Although the second half of 2021 was disturbed by the business reform of overseas subsidiaries mayborn and Ping’an special channel and the restriction of super head anchor live broadcasting, the company achieved ideal growth in its main business and significantly improved its profitability throughout the year. Looking forward to 2022, the company plans to achieve double-digit growth on the revenue side and continue to move forward to the goal of equity incentive. We continue to look forward to the active revitalization of the old domestic goods group, the continuous upgrading of channels, products and categories, the steady growth of business and the continuous improvement of business efficiency. We slightly lowered the 22-year and 23-year revenue forecast, raised the 22-year profit forecast and maintained the 23-year profit forecast, with the corresponding EPS of 1.23 (+ 1%) and 1.58 yuan from 22 to 23 years, the new 24-year profit forecast and EPS of 1.84 yuan, and the PE of 22 and 23 years were 30 times and 23 times respectively, maintaining the “buy” rating.
Risk warning: the promotion and sales of new products are not as expected; Industry competition intensifies; Channel adjustment is less than expected; Improper fee control or less effective than expected.
