\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 315 Shanghai Jahwa United Co.Ltd(600315) )
The company disclosed in the annual report of 2021 that the company’s revenue in 2021 was 7.646 billion (+ 8.73%), the net profit attributable to the parent was 649 million (+ 50.92%), and the net profit not attributable to the parent was 676 million (+ 70.76%); Among them, the single Q4 revenue was 1.816 billion (+ 8.71%), the net profit attributable to the parent was 229 million (+ 93.75%), and the net profit not attributable to the parent was 202 million (+ 68.26%).
Revenue split:
By category: skin care 2.697 billion yuan (+ 22.22%), family care 2.41 billion yuan (+ 0.42%), mother and baby 2.158 billion yuan (+ 4.18%), cooperative brands 373 million yuan (+ 6.48%).
By channel: 1.936 billion yuan for e-commerce (accounting for 25.35%), 565 million yuan for special channels (accounting for 7.40%), 2.541 billion yuan for supermarkets (accounting for 33.27%), 473 million yuan for department stores (accounting for 6.19%), and 3.5% for CS3 RMB 300 million (accounting for 4.32%), overseas online RMB 709 million (accounting for 9.28%), overseas offline RMB 1084 million (accounting for 14.19%).
Profit split:
Gross profit margin: the company’s gross profit margin in 2021 was 58.73% (excluding the impact of accounting standards adjustment, year-on-year + 2.84pcts), of which the gross profit margins of skin care, gehujiaqing, mother and baby and cooperative brands were 71.23% (+ 3.03pcts), 55.14% (+ 1.70pcts), 51.09% (+ 2.19pcts) and 36.55% (-0.09pcts) respectively. The company’s high gross profit skin care categories grew rapidly and optimized the gross profit structure.
Expense ratio: the company’s sales expense ratio is 38.54% (- 3.04pcts), the management expense ratio is 12.48% (+ 0.18pcts), of which the R & D expense ratio is 2.13% (+ 0.08%), and the company’s sales expense ratio has decreased significantly, mainly due to the multi platform layout of e-commerce and the strengthening of self broadcasting to improve operation capacity, resulting in higher marketing efficiency. Net interest rate: the company’s net interest rate attributable to the parent company in 2021 was 8.49% (+ 2.37pcts), the optimization of gross profit structure, the improvement of channel efficiency and the significant improvement of the company’s profitability.
Business highlights:
1. Bright products: during the reporting period, the repurchase rate of the company’s key brands increased significantly. In 2021, the repurchase rate of baicaoji was 41.61% (+ 7.88pcts) and Yuze was 42.58% (+ 6.22pcts); The company deepened its cooperation with tmall Innovation Center TMIC and achieved preliminary results. The whole series of baicaoji brand-new Taiji muscle source entered the brand head sales SKU and became the top five selling products during the “double 11” period; Yu Ze new blue cabin essence listed GMV in the first week exceeded 10 million yuan, and in Tmall national tide day separately the national product beautiful makeup first and the beautiful makeup entire second.
2. Channel upgrading: during the reporting period, the company’s e-commerce channels promoted multi platform layout with refined operation and achieved rapid growth. Among them, tmall platform has improved its operation ability by strengthening store self broadcasting; After optimization and adjustment, JD platform began to achieve rapid growth and turn around losses; Pinduoduo platform was among the first batch to be shortlisted in the “supernova plan”, interested in e-commerce platform innovation and exploring new ways of playing in people and goods yard; Offline actively expand new retail business, with a year-on-year growth rate of more than 100% in the reporting period, accounting for more than 10% of China’s offline business.
3. R & D and Innovation: 2021 is the first year of the new regulations on the supervision and administration of cosmetics. The company actively participated in the formulation of new regulations. During the reporting period, it participated in the issuance or formulation of 5 national or industrial standards, 19 group or landmark, involving efficacy testing, safety evaluation, raw material and finished product testing, digital transformation, etc. at the same time, the company submitted 82 new patent applications during the reporting period, yoy + 68%.
Investment suggestion: buy rating
The management of the company strives to achieve double-digit year-on-year growth in operating revenue in 2022, strategically maintain the “123 business policy”, focus on high value-added skin care products at the product end, expand new platforms on the channel end line and refine operation. It is predicted that the net profit from 2022 to 2024 will be 832, 1065 and 1285 million (the previous value is the predicted net profit from 2021 to 2023 of 556, 893 and 11.69, which are adjusted according to the updated data of the company’s annual report and equity incentive objectives). It is rated as “buy” corresponding to pe29, 22 and 19 times from 22 to 24 years.
Risk tip: the market space is less than expected, the product approval results and progress are less than expected, and the industry competition is intensified
