\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 315 Shanghai Jahwa United Co.Ltd(600315) )
Event: the company issued the annual report of 2021. In 2021, the revenue reached 7.646 billion yuan, a year-on-year increase of + 8.7%; The net profit attributable to the parent company was 649 million yuan, a year-on-year increase of + 50.9%; Deduct the net profit not attributable to the parent company of RMB 676 million, a year-on-year increase of + 70.8%. The company expects to distribute a cash dividend of 2.90 yuan (including tax) to all shareholders for every 10 shares.
Quarter by quarter, the company’s revenue in Q1-Q4 single quarter changed by + 27.0% / + 3.7% / – 3.4% / + 8.7% respectively year-on-year, the net profit attributable to the parent increased by 41.9% / 81.7% / 4.6% / 93.8% respectively, and the net profit excluding non attributable to the parent increased by 53.1% / 299.1% / 26.3% / 68.3% respectively.
The gross profit margin increased year-on-year, and the expense control was better, driving the net profit margin to increase by 2.37pct year-on-year. In 2021, the gross profit margin of the company was 58.73% (same caliber year-on-year + 2.84pct), mainly due to the increase in the proportion of skin care products with high gross profit. In terms of expense rate, the company’s sales expense rate / management expense rate in 2021 was + 1.02pct / + 0.09pct year-on-year with the same caliber respectively, and the expense rate was generally well controlled. In 2021, the company’s net profit margin on sales was 8.49%, a year-on-year increase of + 2.37pct. The company achieved an operating cash flow of 993 million yuan in 2021, a year-on-year increase of + 54.34%.
Skin care led the growth rate, leaping to the largest category, and the re purchase rate of baicaoji and Yuze increased: in 2021, skin care / gehujiaqing / mother and baby / cooperative brands achieved revenue of 27.0/24.1/21.6/370 million yuan respectively, with an increase of 22.2% / 0.4% / 4.2% / 6.5% respectively, and the proportion of main businesses was 35% / 32% / 28% / 5% respectively. The rapid development of baicaoji, Yuze and other skin care brands with high gross profit is conducive to the improvement of the company’s profitability. In 2021, the skin care category has jumped from the sales proportion to the largest category. In 2021, the current customers of baicaoji / Yuze were 1.93 million / / 3.61 million respectively, and the repurchase rate was 41.6% / 42.6% respectively, with a year-on-year increase of 7.9pct/6.2pct respectively.
Online e-commerce channels grew rapidly, while offline department stores / CS increased rapidly at the same time: in 2021, online / offline channels achieved revenue of RMB 3.211/4.427 billion respectively, with an increase of 7.9% / 9.3% respectively. Among them, China online / foreign online achieved revenue of RMB 2.5 billion / 710 million respectively. China’s offline / overseas offline revenue reached 3.34 billion yuan and 1.08 billion yuan respectively. In terms of specific business in China, in online channels, e-commerce / special channel achieved revenue of 1.94 billion yuan / 570 million yuan respectively in 2021, the growth was mainly driven by e-commerce, and special channel decreased year-on-year due to the reform of Ping An Life Insurance; In offline channels, supermarkets / department stores / CS achieved revenue of RMB 2.54/4.7/330 billion respectively in 2021. Department stores continued to optimize and upgrade their channels, closed 111 low-yield counters to 866, and turned losses into profits through the online operation of four seasons spa business. The profitability of CS channel has been improved through CS reconstruction and Watson’s profit increase.
Profit forecast and investment rating: the company continues to focus on building core SKUs and popular models, and innovate channels and marketing models. We maintain the net profit attributable to the parent company in 20222023 at 830 / 1160 million yuan, and predict that the net profit attributable to the parent company in 2024 will be 1.558 billion yuan. The net profit attributable to the parent company in 20222024 will increase by 27.78% / 39.85% / 34.30% respectively. The current market value corresponding to PE is 29, 21 and 15 times respectively, maintaining the “buy” rating.
Risk tips: the epidemic affects consumption, industry competition intensifies, and the promotion of new products is less than expected.
