\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 315 Shanghai Jahwa United Co.Ltd(600315) )
Event overview
The company released its annual report for 2021. In 2021, the company achieved a revenue of 7.646 billion yuan, a year-on-year increase of 8.73%; The net profit attributable to the parent company was 649 million yuan, a year-on-year increase of 50.92%; The net profit attributable to the parent company after deduction was 676 million yuan, with a year-on-year increase of 70.76%. In a single quarter, Q1 / Q2 / Q3 / Q4 achieved revenue of 21.15/20.95/16.2/1.816 billion yuan respectively in 2021, with a year-on-year increase of 27.04% / 3.73% / – 3.41% / 8.71%; The net profit attributable to the parent company was 169 / 117 / 135 / 229 million yuan, with a year-on-year increase of 41.92% / 81.69% / 4.6% / 93.75%.
Analysis and judgment:
Revenue side: skin care products performed beautifully, and the proportion of e-commerce increased
In terms of products, in 2021, the company’s skin care products / gehujiaqing products / mother and baby products / cooperative brand products achieved revenue of RMB 26.97/24.1/21.58/373 million respectively, with a year-on-year increase of 22.22% / 0.42% / 4.18% / 6.48%. The revenue of skin care products accounted for 35.31%. From the perspective of sub channels, the company overcame the impact of short-term adverse factors on special channel business and overseas business. Led by e-commerce business, the company promoted the multi platform layout of e-commerce, gradually reduced its dependence on single platform, strengthened self broadcast business to improve its operation capacity, and achieved year-on-year rapid growth and increased proportion. The company’s overall online channels achieved revenue of 3.211 billion yuan, accounting for 42.04% of the company’s main revenue, of which China’s e-commerce channels achieved revenue of 1.936 billion yuan, accounting for 25.35% of the company’s main revenue.
Profit side: optimize product structure and improve profitability
In 2021, the gross profit margin of the company increased by 2.84 PCT to 58.73% year on year, and the net profit margin increased by 2.37 PCT to 8.49% year on year. The increase in gross profit margin is mainly due to the company’s adherence to the differentiated brand development strategy, positioning the rapid growth of skin care products with high gross profit, optimizing the overall gross profit structure of the company and improving its profitability. In terms of expenses, the company’s expense rate in 2021 was 51.18%, a year-on-year decrease of 3.32 PCT. Among them, the sales expense rate was 38.54%, a year-on-year decrease of 3.05pct, which was the main reason for the decline of expense rate during the period. The financial expense ratio was 0.16%, a year-on-year decrease of 0.45pct, mainly due to the repayment of overseas syndicated loans in the same period last year, the unamortized arrangement fee was included in the financial expenses at one time, and the year-on-year decrease in the loan interest rate after replacement, resulting in a year-on-year decrease in the interest expense of bank loans.
Other important financial indicators
In 2021, the company achieved continuous improvement in business quality. The ending inventory was 872 million yuan, and the inventory turnover days decreased by 11 days year-on-year; The accounts receivable at the end of the period was 1.109 billion yuan, and the turnover days of accounts receivable decreased by 3 days year-on-year. During the reporting period, the company realized an operating cash flow of 993 million yuan, a year-on-year increase of 54.34%.
Effective brand innovation and channel upgrading
The company has made fruitful reforms in brand innovation and channel upgrading. Benefiting from the company’s brand innovation, MAXAM reversed the declining trend of the brand for many years due to the listing of fermented rice series. The listing of baicaoji Taiji series brought the re purchase data of the brand from 33.7% in 20 years to 41.6% in 21 years, while the proportion of people in Z era of baicaoji brand increased by 62%. Yuze brand has made a breakthrough in cross-border cooperation with the heavyweight IP – China Aerospace twelve heavenly palace to break the marketing circle. The proportion of people in brand Z era has increased by 25%, and the repurchase rate has increased from 36.4% in 20 years to 42.6% in 21 years. Yuze’s official flagship store has also ranked among the top 5 in tmall’s domestic beauty sales in 2021. Liushen brand launched a younger jingcui shower gel series on the product side and officially announced Xiao Zhan as the brand’s new spokesperson on the marketing side. The brand’s online market share increased by 3% over 20 years. Jingcui shower gel series ranked first in the shower gel category on tmall V list in November. The aggregation degree of the company’s whole brand head products increased from 56% in 2019 to 71% in 2021. On the channel side, the company has promoted all-round cooperation with Wuxi Online Offline Communication Information Technology Co.Ltd(300959) various platforms. Online, the company has operated a total of 82 stores in 21 years, more than double the 36 stores in 2020. The company also built Wuxi Online Offline Communication Information Technology Co.Ltd(300959) integrated private domain operation and carried out refined communication among all domain users. It has accumulated more than one million users and more than 9000 private domain communication groups. It also built one-to-one communication channels for VIP customers, which promoted the value of user life cycle by 16%. Offline, the company continued to promote smart retail. The proportion of smart retail has exceeded 10% of offline channels and achieved an increase of more than 100%. The proportion of smart retail of some customers has been close to 20%.
Investment advice
As a leader in the field of daily chemicals, the company has a complete range of products, covering medium and low-end product lines. In 2021, the company established the business policy of “one center, two basic points and three boosters” and achieved certain results. In 2022, the company will focus on the iterative optimization of 1-2-3 policy, continue to disassemble and subdivide the business, and achieve quantifiable, visual and optimization. Continuously improve organizational efficiency through fine operation. We are firmly optimistic about the medium and long-term investment value of the company. We maintain the company’s profit forecast for 22-23 years unchanged. It is estimated that the company’s revenue in 20222024 will be 9.553/10.795/11.883 billion yuan, EPS will be 1.22/1.71/1.98 yuan respectively, corresponding to the closing price of 35 yuan / share on March 16, 2022, and PE will be 28.6/20.5/17.7 times respectively, maintaining the company’s “buy” rating.
Risk tips
1) industry competition intensifies. 2) The improvement of the company’s operation is less than expected.
