\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 315 Shanghai Jahwa United Co.Ltd(600315) )
Event:
Shanghai Jahwa United Co.Ltd(600315) released the annual report of 2021. In 2021, the revenue was RMB 7.646 billion / + 8.73%, the net profit attributable to parent company was RMB 649 million / + 50.9%, and the net profit not attributable to parent company was RMB 676 million / + 70.8%. The net profit attributable to the parent company was RMB 20.23 billion / + 1.68 billion, and the net profit attributable to the parent company was RMB 20.28 billion / + 1.68 billion / + 1.68 billion / + 1.68 billion.
Key investment points:
The revenue increased steadily and the gross sales difference increased further. In 2021q4, the company achieved a revenue of 1.816 billion yuan / + 8.7%, a net profit of 229 million yuan / + 94.1%, and a net interest rate of 12.6% / + 5.53pct, the highest in a single quarter in recent five years. In 2021, the company realized a net profit attributable to the parent company of 650 million yuan / substantial + 50.9%. It is estimated that the possible main reasons are as follows: 1) the participating company abundant merit limited realized a net profit of 185 million yuan / a year-on-year increase of 78 million yuan; 2) Rapid development of high gross profit and high growth business; 3) Six gods raise prices. From the perspective of gross profit rate and expense rate, the gross profit rate / sales expense rate of 2021q4 company is 45.7% / 19.4% respectively, and the gross sales difference is 26.3% / an increase of 1.2pct year-on-year. The management / R & D / financial expense ratio of 2021q4 company reached 11.4% / 3.1% / 0.2% respectively, with a year-on-year increase of – 1.4/0.5/0.3pct respectively.
The skin care business grew strongly and most brands performed well. By business, in 2021, skincare / gehujiaqing / mother and baby / cooperative brands achieved revenue of 27 / 24 / 2.16 / 370 billion yuan respectively, with a year-on-year increase of 22.2% / 0.4% / 4.2% / 6.5% respectively, of which the proportion of skincare business with high gross profit and high growth increased to 35% / + 4pct. By business sub brands: 1) in skincare business, baicaoji / Yuze / Diancui / Goff / MAXAM / Shuangmei increased by 30% + / 20% + / 35% + / 15% + / nearly 10% / 15% +; 2) In Gehu Jiaqing business, Liushen / Jiaan increased by single digits / – 13% respectively year-on-year; 3) In the maternal and infant business, Qichu / Tang Meixing are + 20% / – 1.7% respectively. Looking at 2021q4 skincare / gehujiaqing / mother and baby / cooperative brands, the revenue was 9.2/1.7/6.1/98 billion yuan respectively, with a year-on-year increase of about 15.7% / – 13% / 6.8% / 10.2% respectively. Among them, Q4 skincare business still showed a bright growth performance, with a year-on-year increase of 5.5% / 9.7% respectively in volume / price, realizing the simultaneous rise of volume and price.
The e-commerce business has maintained strong growth, and the special channel business is still under pressure in the short term. In 2021, the company achieved revenue of RMB 5.845 billion and RMB 1.793 billion respectively in China and abroad, with a year-on-year increase of 12.2% / – 1.5% respectively. From the perspective of China’s business channels: 1) online business revenue is 2.5 billion yuan / accounting for 43% of China’s revenue, of which the revenue of e-commerce / special channel is 91.936565 million yuan respectively. It is expected that the e-commerce / special channel will increase by about 20% / – 10% respectively. The special channel business is expected to remain under pressure in 2022h1, but 2022h2 will be gradually improved; 2) The offline business revenue is 3.3 billion yuan, of which supermarkets / department stores / Cs are 25.4/4.7/330 million yuan respectively, which is expected to increase by a high single digit / 35% + / 40% +. In terms of foreign business, we can see from different channels: 1) online business revenue is 709 million yuan; 2) Offline business is 1.084 billion yuan.
Brand innovation + advanced channel achievements are emerging, and digital transformation continues to develop. After taking office, President pan, chairman and CEO of the company, continued to promote the “123” business strategy, and achieved phased results in brand innovation and channel upgrading. Brand innovation: 1) in terms of product innovation, the company has promoted the brand-R & D PMO one-to-one communication service mode. On the one hand, 82 new patent applications have been submitted during the reporting period. On the other hand, baicaoji achieved a repurchase rate of 41.6% / + 7.9pct in 2021, and the aggregation degree of all brand head products reached 71% / + 15pct; 2) In terms of marketing innovation, the rejuvenation of the company’s brand was promoted, and the proportion of people in baicaoji / Yuze Z era increased by 62% / 25% respectively. In terms of channel upgrading, the company actively carries out private domain operation, smart retail, etc. at present, the proportion of offline smart retail exceeds 10%, and digital transformation is also continuously recommended.
Profit forecast and investment rating: it is estimated that the company will achieve a revenue of 8.6/98/10.9 billion yuan in 2022 / 2023 / 2024, with a year-on-year increase of 12.5% / 13.7% / 11.6%. The net profit attributable to the parent company is expected to be RMB 830 / 1040 / 1.26 billion, with a year-on-year increase of 27.9% / 25.2% / 21.5%, maintaining the rating of “overweight”.
Risk Tips 1) the flow cost has increased significantly; 2) Overseas brands cut prices to seize market share; 3) Product quality problems; 4) Stricter supervision leads to the new products being less than expected; 5) The rapid rise of cutting-edge brands intensifies competition; 6) If relevant materials and data are inconsistent with Shanghai Jahwa United Co.Ltd(600315) announcement, the announcement of the company shall prevail.
