\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 315 Shanghai Jahwa United Co.Ltd(600315) )
Event:
The company issued its annual report for 2021.
Comments:
The gross profit margin increased by 2.84%, and the category optimization combined with SKU simplification led to the continuous improvement of profitability
In 2021, the company realized an operating revenue of 7.646 billion yuan, with a year-on-year increase of 8.73%. From Q1 to Q4, the operating revenue increased by 27.04% / 3.73% / – 3.41% / 8.71% respectively; The gross profit margin was 58.73%, an increase of 2.84pct (part of the transportation expenses were adjusted to the operating cost in 21 years), mainly relying on the optimization of category structure, in which the proportion of skin care products with high gross profit margin increased to 35.31%; The sales expense was 2.937 billion yuan, and the sales expense rate was 38.54%, an increase of 1.02 PCT, The management fee rate was 10.34%, which was basically the same; The net profit attributable to the parent company was 649 million yuan, a year-on-year increase of 50.92%, and the net profit margin was 8.49%, an increase of 2.37pct, Category optimization and SKU simplification have significantly improved the profitability of the company. In 2021, the company’s operating quality continued to improve, and the number of inventory turnover days decreased by 11 days year-on-year; The turnover days of accounts receivable decreased by 3 days year-on-year; The company realized an operating cash flow of 993 million yuan, a year-on-year increase of 54.34%
The channel structure is optimized, which has been disturbed by the short-term adjustment of special channel and super head in 21 years
In terms of categories, skin care increased by 22.22%, of which baicaoji, Yuze and Diancui increased rapidly; The category of family care products increased by 0.42%; The maternal and infant business increased by 4.18% year-on-year, with a good growth in Qichu. In terms of channels, the company overcame the short-term impact of the adjustment of special channels, overseas businesses and super head live broadcasting in 2021, promoted the layout of multi platforms and gradually reduced its dependence on single platforms under the guidance of e-commerce business. Online channels increased by 7.87% year-on-year, tmall flagship store platform strengthened the layout of store self broadcasting, and JD platform business began to achieve rapid growth and turn around losses after optimization and adjustment; Pinduoduo platform was among the first batch of finalists in the “supernova program”, interested in e-commerce and exploring new ways of playing in people and goods yard. Offline channels increased by 9.26% year-on-year, department store channels continued to be strategically closed and downsized, and 111 low yield counters and stores were closed; CS channel profit improvement; The year-on-year growth rate of new retail business exceeded 100%, accounting for more than 10% of China’s offline business.
Investment advice and profit forecast
Shanghai Jahwa United Co.Ltd(600315) is an old daily chemical enterprise in China. Since taking office, the new management has comprehensively upgraded and adjusted the brand, products, channels and organizational structure, and continuously optimized the operation quality and profitability. We expect that from 2022 to 2024, the company will realize a revenue of RMB 8.629/96.74/10.767 billion, a net profit attributable to the parent company of RMB 836/10.65/1.229 billion, and an eps1.5% 23 / 1.57/1.81 yuan, corresponding to pe29 / 23 / 19x, maintaining the “buy” rating.
Risk tips
The prosperity of the industry has declined, the competition in the brand market has intensified, and the adjustment of brands and channels is less than expected.
