\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 315 Shanghai Jahwa United Co.Ltd(600315) )
The company released its performance in 2021, and the profit was in line with expectations. In 2021, the revenue will be 7.646 billion / yoy + 8.73%, the net profit attributable to the parent company will be 649 million / yoy + 50.92%, and the net profit attributable to the parent company after deduction will be 676 million / yoy + 70.76%; In a single quarter, in 2021q4, the revenue was 1.816 billion / yoy + 8.71%, the net profit attributable to the parent was 229 million / yoy + 93.75%, and the net profit attributable to the parent after deduction was 202 million / yoy + 68.26%.
The margin of profitability was improved, and the results of cost reduction and efficiency increase were remarkable. In 2021, the gross profit margin will be 58.73% / + 2.84pcts. The proportion of skin care products mainly from high gross profit will increase by 3.91% to 35.31%, and the gross profit margin will increase by 3.03% to 71.23%. The focus on head SKU strategy is significant; If the financial adjustment of logistics cost is traced back, the sales expense rate in 21 years is 38.54% / + 1.02pcts, the sales personnel are reduced, but the brand launch and e-commerce launch are improved. The company lists the fine operation and sales expense ROI of e-commerce as the top ten projects in 2022. The company will hedge the super impact through self broadcast, and it is expected that the cost launch will continue to be optimized and gradually realized; The management expense rate and R & D expense rate are basically the same. The digital team and trainees are recruited to expand the talent reserve and make the organization younger. In 21 years, the company submitted 82 new patent applications to promote R & D empowerment around basic research, application innovation and product value shaping. The days of inventory turnover and accounts receivable decreased by 11 days and 3 days respectively, and the operation quality continued to improve.
Skin care products are innovated and upgraded, and the management organization enables the company to grow rapidly. Grasp the three cores of high-end + efficiency + scale, follow the two strategies of focusing on head products and reducing long tail products, and the aggregation of all brand head products increased from 56% in 2019 to 71% in 2021. (1) Yuze: the proportion of people in Z era has increased by 25%, and the repurchase rate has increased from 36.4% in 20 years to 42.6% in 21 years. The official flagship store ranks among the top 5 in the sales of tmall’s domestic beauty products in 2021; Reduce the dependence on super anchor, slight pressure on short-term economic performance, and optimistic about the benign development of channel structure in the medium and long term. (2) Herborist: official propaganda Zhang Xiao Fei as spokesperson, “tiktok Raiders” to achieve content driven marketing, Herborist Z era crowd accounted for 62%, and the repeat purchase rate increased from 20 to 33.7% in 21 years. In addition, MAXAM has reversed its decline for many years and the six gods are moving towards younger development. We believe that the bright data comes from the empowerment of the management organization. With the Chairman Pan Qiusheng as the core, the management team has been further built and improved. Focusing on the blessing of the “123” strategy, MAXAM has gradually promoted the brand-R & D PMO one-to-one communication service model, simplified the internal organization process and improved the communication efficiency.
Online multi platform development and offline continuous optimization. The epidemic situation and Ping An’s internal reform have disturbed Tequ’s 21h2 performance, and the group customers have shifted to retail for hedging. It is expected that the 22h2 performance will be realized gradually; With the electricity supplier as the leading force, from Tmall to Jingdong, jitter and other platforms, the number of shops increased from 36 to 82, and the long self seeding tiktok operation enabled the online business to grow steadily. 21q2 promoted Wuxi Online Offline Communication Information Technology Co.Ltd(300959) private domain operation, accumulated more than one million users and achieved 16% increase in LTV; Offline, smart retail accounts for more than 10%. Baicaoji’s inefficient stores continue to be optimized. Traditional CS reconstruction + Watson’s in-depth cooperation + entering Sephora will consolidate offline competitiveness in the future or through customization and consumption scenario extension.
Investment suggestion: the management is determined to forge ahead, reorganize from the brand, channel, digitization, marketing and other dimensions, straighten out the organizational structure, reduce internal costs and increase efficiency, and look forward to the Centennial rejuvenation of domestication. It is estimated that the net profit attributable to the parent company from 2022 to 2024 will be 830 million / 1.01 billion / 1.23 billion, and the corresponding PE will be 29x / 24x / 19x, maintaining the “overweight” rating.
Risk tip: the prosperity of the cosmetics industry is at risk of decline; The risk of intensified competition in the cosmetics industry; The risk that the strategic promotion is not as good as expected; The promotion of new products was less than expected.
