\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 315 Shanghai Jahwa United Co.Ltd(600315) )
The profit side increased rapidly, and the business indicators improved significantly. In 2021, the company achieved a revenue of about 7.646 billion yuan (YoY + 8.7%), which was mainly affected by the overseas epidemic and the reform of Ping An Life Insurance. The net profit attributable to the parent was about 649 million yuan (YoY + 51%), and the net profit not attributable to the parent was about 676 million yuan (YoY + 71%), which improved the profitability. In 2021, the overall gross profit margin increased by 2.84 PCTs to 58.73%, the sales rate increased by 1.02 PCTs to 38.54%, and the management rate / R & D rate remained equally divided to 10.34% / 2.13%, driving the overall parent net profit margin of about 8.49%. Among them, the single Q4 revenue is about 1.816 billion (YoY + 8.71%), the net profit attributable to the parent is about 229 million (YoY + 93.75%), and the net profit deducted from non attributable to the parent is about 202 million (YoY + 68.26%). During the period, the operating indicators were significantly improved, and the inventory turnover days decreased from 11 days to 99 days; The days of accounts receivable decreased to RMB 1.109 billion, and the days of accounts receivable decreased to RMB 1.309 billion at the end of the period. By the end of 2021, the operating cash flow was 993 million yuan (YoY + 54.34%). The company plans to distribute a cash dividend of 2.9 yuan (including tax) for every 10 shares based on 680 million shares, accounting for 30.31% of the net profit attributable to the parent company.
Brand innovation: “product R & D + marketing” a game of chess, brand rejuvenation, effectively improve gross profit. 1) The category structure continues to focus on high gross profit categories. In terms of category revenue, skin care category is 2.697 billion yuan (YoY + 22.22%), accounting for an increase 4pcts to 35%, family care is 2.41 billion yuan (YoY + 0.42%), mother and baby is 2.158 billion yuan (YoY + 4.18%), and cooperative brands are 373 million yuan (YoY + 6.48%). Streamlining SKU has achieved remarkable results, and the polymerization degree of head products has increased from 56% in 2019 to 71% in 2021. 2) In terms of the growth rate of sub brands, in skin care, baicaoji / Yuze / Diancui / Goff / MAXAM / Shuangmei increased by about 30% / 20% / 35% / 15% / 10% / 15% respectively. In the family care center, the six gods increased in single digits, the home safety decreased by 13% under the influence of special channels, and the growth rate of mothers and infants at the beginning of childhood exceeded 20% +. 3) The company’s R & D overweight + marketing innovation helps key brands continue to break the circle: baicaoji creates “characteristic herb” × “Technology empowerment”, all the new Taiji series products entered the head SKU, with a total of 1.93 million customers during the period, and the repurchase rate increased from 33.7% to 41.6% (+ 7.9pcts); Yu Ze firmly adhere to the “Medical Research Co creation” positioning, the total number of customers during the period of 3 million 610 thousand people, the repetition rate increased from 36.4% to 42.6% (+6.2pcts), the new blue cabin essence listed the first week GMV exceeded 10 million yuan, and ranked the first place in Tmall National tide day.
Channel upgrading: strengthen online operation + optimize offline efficiency, and improve LTV through all channels. In terms of channels, 1) online revenue is 3.211 billion yuan (YoY + 7.87%), accounting for 42.04%, of which China’s e-commerce / special channel are 1.936 billion / 565 million respectively. E-commerce continues to promote multi platform refined operation, and the number of stores has increased from 36 to 82 in 20 years, effectively reducing its dependence on supermarkets; The effect of the transformation from special canal to retail is remarkable. 2) The offline revenue was 4.427 billion yuan (YoY + 9.26%), accounting for 57.96%, of which China supermarket / department store / CS were 2.541 billion yuan / 473 million yuan / 330 million yuan respectively. New retail helps online, accounting for more than 10% of offline revenue, effectively reducing the impact of traffic decline; Department stores closed 111 low yield stores to 866 and turned losses into profits. 3) Build Wuxi Online Offline Communication Information Technology Co.Ltd(300959) integrated private domain operation and improve user experience. It has accumulated more than one million global users and more than 9000 private domain communication groups, promoting the user life cycle value to increase by 16%.
Organizational upgrading: build a fine and efficient system and strive to achieve double-digit growth in revenue in 22 years. Looking forward to 2022, the company will continue to focus on the iterative optimization of the “123” business policy, develop the talent echelon, subdivide the business disassembly into quantifiable, visual and optimization, continuously improve the organizational efficiency, promote the one-to-one communication between brand and R & D PMO, and the R & D cycle is expected to be further shortened from 8.5 months. Layout eight innovative basic research platforms, and constantly innovate on the product side to continue to expand the circle among young consumers. Specifically, we will promote ten major projects, including explosive Innovation 2.0, baicaoji revival 2.0, e-commerce refined operation, and sales expense ROI, and strive to achieve double-digit growth in revenue.
Profit forecast and investment suggestions. The company adheres to the 123 strategic policy, the implementation effect of various plans on the product / marketing / channel side has initially appeared, and the business quality has been continuously improved. Based on the performance of the annual report, we adjusted the profit forecast. It is estimated that the company’s revenue in 20222024 will be RMB 8.597/97.03/10.976 billion respectively, with an increase of 12.4% / 12.9% / 13.1% respectively, and the net profit attributable to the parent company will be RMB 8.38/10.51/1.271 billion respectively, with an increase of 29.1% / 25.3% / 21.0% respectively. The current market value is 23.8 billion yuan, corresponding to 28 times of PE in 2022, maintaining the “overweight” rating.
Risk tip: the adjustment process does not meet expectations, and the brand or new product promotion effect does not meet expectations.
