\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 315 Shanghai Jahwa United Co.Ltd(600315) )
Event overview: the company released the financial report for 21 years. In 21 years, the operating revenue was 7.65 billion yuan / yoy + 8.7%, the net profit was 649 million yuan / yoy + 50.9%, and the net profit deducted was 676 million yuan / yoy + 70.8%; Single Q4 achieved an operating revenue of 1.82 billion yuan / yoy + 8.7%, and a net profit attributable to the parent company of 229 million yuan / + 93.8%.
Focus on skin care categories and multi brand development: the company adheres to the differentiated brand development strategy, and the skin care categories with high gross profit have achieved rapid growth and improved profitability. The revenue of skin care products is 2.7 billion yuan / yoy + 22%, accounting for 35%, becoming the largest category of the company. The revenue of baicaoji, a skin care product, increased by more than 30% year-on-year, Yuze, Diancui + 35%, goufu + 15%, meijiajing about yoy + 10%, and Shuangmei increased by more than 15% year-on-year; The revenue of individual protection products was 2.4 billion yuan / yoy + 0.4%, and Liushen achieved high single digit growth; The revenue of maternal and infant categories was 2.2 billion yuan / yoy + 4%, with an initial growth rate of more than 20%.
Online business has increased rapidly, and the proportion of e-commerce structure has increased: the company’s e-commerce channel revenue last year was + 20% year-on-year, and the proportion of e-commerce in China’s business exceeded 33%, with a year-on-year increase of 2pt. Herborist’s tiktok live room is created by content creation, with a total total playback of over 13 million. It helps Herborist quickly get on the NO.19 of the beauty brand brand and become a new model of the industry’s live broadcast. Tequ has expanded multiple platforms and accelerated its transformation to retail business under pressure in the past 21 years. It is estimated that it is expected to stabilize and recover in the second half of this year. At the same time, in the past 21 years, the company has streamlined its offline business and achieved high single digit growth in commercial supermarket channels. The year-on-year growth rate of department store channels is more than 40% and that of CS channels is more than 35%.
The company’s expense rate is stable, and the growth of gross profit margin drives the growth of profit: in 21 years, the company’s sales expense is 2.95 billion / yoy + 12%, the sales expense rate is 39% / yoy + 1.0pt, the management expense is 790 million / yoy + 1.0%, and the expense rate is 10% / yoy + 0.1pt. The company’s expense rate is basically stable, and the profit growth is mainly driven by the increase of gross profit margin. The gross profit margin of the company for the whole year of 21 years is 58.7% / yoy + 3pt, and the net profit margin is 8.5% / yoy + 2pt. The company has absorbed the cost pressure brought by the price rise of main raw materials. Through the change of product structure and the focus of various brands on the head SKU with high gross profit, the company has improved the gross profit margin and ensured the profitability.
The “123” policy has been effective and the brand repurchase rate has been improved: Based on the company’s “123” policy and product marketing innovation, the listing of meijiajing fermented rice series has reversed the decline of the brand for many years. The repurchase data of baicaoji Taiji series has increased from 33.7% in 20 years to 41.6% in 21 years, and the aggregation degree of whole brand head products has increased from 56% in 2019 to 71% in 2021. In terms of marketing innovation, the company made bold attempts. The proportion of “z-era crowd” in baicaoji increased by 62%, and the repurchase data increased from 33.7% in 20 years to 41.6% in 21 years. The proportion of “z-era crowd” in Yuze has increased by 25%, and the re purchase has increased from 36.4% in 20 years to 42.6% in 21 years. Yuze’s official flagship store ranks among the top 5 in domestic beauty sales of tmall in 2021.
Investment suggestion: focusing on the “123” business strategy, the company has continuously improved its brands and channels, continuously increased the proportion of skin care products, and achieved high profits. It is expected that in the future, the company will continue to carry out multi platform layout, optimize channel operation and achieve healthy brand growth. We are optimistic about the company’s business development. It is expected that the company will achieve revenue of 93.8/107.0/12.17 billion yuan and net profit attributable to the parent company of 881/10.27/1.248 billion yuan in 22-24 years, with a year-on-year increase of 36% / 17% / 22% respectively, and the corresponding PE is 27 / 23 / 19x, maintaining the “recommended” rating.
Risk tip: the macroeconomic growth rate is declining, the channel reform is accelerating, and the cultivation of new brands is not as expected
