\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 315 Shanghai Jahwa United Co.Ltd(600315) )
Event: the company released its annual report for 2021, and achieved an operating revenue of 7.65 billion yuan in 2021, a year-on-year increase of 8.7%; The net profit attributable to the parent company was 650 million yuan, with a year-on-year increase of 50.9%, and the net profit deducted from non attributable to the parent company was 680 million yuan, with a year-on-year increase of 70.8%, mainly due to the income from the company's holding or disposal of financial assets of - 40 million yuan. Q4 achieved a revenue of 1.82 billion yuan in a single quarter, with a year-on-year increase of 8.7%, a net profit attributable to the parent of 230 million yuan, with a year-on-year increase of 93.8%, and a deduction of non attributable net profit of 200 million yuan, with a year-on-year increase of 68.3%, mainly due to the effective strategy of improving brand aggregation and the bright growth of performance in the fourth quarter.
The impact of the epidemic weakened, and the skin care business continued to make efforts. In 2021, the epidemic situation was stably controlled and offline channels were gradually restored. At the same time, the company's main business structure was improved and its revenue increased rapidly. In terms of channels, the offline revenue was 4.43 billion yuan, a year-on-year increase of 9.3%, and the online channel revenue was 3.21 billion yuan, a year-on-year increase of 7.9%. In terms of business, the skin care products business performed well. Last year, it achieved a revenue of 2.7 billion yuan, a year-on-year increase of 22.2%. Other main businesses such as personal care home cleaning, mother and baby and cooperative brands achieved a revenue of 2.41 billion yuan, 2.16 billion yuan and 370 million yuan respectively, a year-on-year increase of 31.6%, 28.3% and 4.9% respectively. The whole line of main business has made great efforts to drive the company's overall revenue to achieve stable growth.
Adhere to the strategy of multi platform and brand aggregation, and improve the profit structure. In 2021, the gross profit margin of the company was 58.7%, with a year-on-year increase of 2.8pct, mainly because on the one hand, the gross profit margin of the skin care business increased by 3PCT to 71.2% through the long tail SKU streamlining strategy, which was better than the overall gross profit level, and the proportion of revenue increased by 3.9pct to 35%, driving the overall gross profit level of the company; On the other hand, the company optimized its channels, closed its offline stores strategically, and closed 111 stores with poor revenue throughout the year. In 2021, the company's net profit margin was 8.5%, up 2.4pct year-on-year, mainly due to the optimization of sales structure and the reduction of promotional investment. Last year, the sales expense rate was 38.5%, down 3pcts year-on-year.
Continue to optimize the brand and upgrade the channel operation. The company continued to adhere to the brand aggregation strategy, and the number of SKUs listed in the overall business decreased, but the contribution to the growth of new products increased. The channel side strengthened multi platform cooperation, optimized the sales structure through e-commerce super head negotiation and the establishment of its own live broadcast team, arranged private domain operation and digital transformation, integrated internal functional departments and improved the operation efficiency of various channels. In 2021, the days of inventory turnover decreased by 11 days, the days of accounts receivable turnover decreased by 3 days, and the operating cash flow increased by 54.3% year-on-year.
Profit forecast and investment suggestions. It is estimated that the company's EPS from 2022 to 2024 will be 1.2 yuan, 1.51 yuan and 1.84 yuan respectively, and the net profit attributable to the parent company will maintain a compound growth rate of 24.5% in the next three years. Considering the continuous optimization of the company's brand and the upgrading of channel operation, the "hold" rating is maintained.
Risk warning: the price of raw materials may fluctuate sharply and the impact of the epidemic is repeated.
