\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 315 Shanghai Jahwa United Co.Ltd(600315) )
The business development guided by the new strategy has achieved initial results, and the beauty and skin care track has taken the lead in 21 years. In March 2021, the company released the “123 business policy” with consumers as the center, brand innovation and channel upgrading as the basic point, culture, system and process and digitization as the booster, and comprehensively upgraded its development strategy. The operating data of the company in the past 21 years have confirmed the initial results of the strategic adjustment and guided the continuous improvement of the business.
Brand product side: multi brand has a strong growth momentum, and the product strength and brand strength have been verified by the market. The company achieved initial results in the methodology of consumer insight. Herborist’s Tai Chi muscle source series, Yu Ze’s blue capsule essence, six spirits’ golden spring shower gel and Maxam’s yeast series all achieved good results, and also brought about the improvement of brand sales and repeat purchase rates. Among them, the sales of baicaoji + 30% and Yuze + 20% year-on-year, and the repurchase rate of tmall platform increased from 33.7% / 36.4% in 20 years to 41.6% / 42.6% in 21 years respectively; Diancui + over 30% year-on-year. Focusing on explosive products and streamlining SKUs have jointly increased the brand aggregation from 56% in 19 years to 71% in 21 years.
Channel side: focus on the five measures of “strategic cooperation, digital empowerment, private domain operation, smart retail and model innovation”, promote the advanced channel, promote the multi platform layout through fine operation, and gradually get rid of the dependence on a single platform. The number of online operation stores has increased from 36 in 20 years to 82 in 21 years. Private operation has accumulated more than one million customers, and smart retail has achieved more than 100% growth.
As a result, the company achieved an operating revenue of 7.646 billion yuan in the whole year of the 21st century, a year-on-year increase of + 8.73%. Among them, Jiaqing and maternal and infant categories increased by about + 4% year-on-year, maintaining steady growth. The beauty and skin care sector achieved a revenue of 2.697 billion yuan, a year-on-year increase of + 22%, far exceeding the growth rate of 14% in the cosmetics industry. The proportion of revenue further increased to 35%, which also boosted the overall gross profit margin by 2.8 PCT To 58.7%, which has become the core factor driving the improvement of profits when the major expense rates are basically stable. The net profit attributable to the parent company was 649 million yuan, a year-on-year increase of + 50.92%. At present, the company is still in the initial stage of strategic adjustment, and the growth potential has not been fully released. With the continuous promotion of strategic upgrading and the continuous consolidation of the foundation, it is expected to accumulate a lot and achieve rapid business growth.
Performance growth can be expected under the decline of short-term negative impact. In 21 years, due to the reform of life insurance, Tequ fell by more than 15% year-on-year. The company is committed to promoting the retail transformation of Tequ business. Under the background of low base, it is expected to achieve positive growth in 22 years. At the same time, with the promotion of multi platform expansion, the company’s dependence on super head and Alibaba’s single channel has weakened, and the price rise of raw materials has been dealt with through the cost reduction measures of the supply chain, the negative impact has decreased, and the performance growth can be expected. The company continues to iterate around the “123” strategy, and strategic upgrading guides the company to make a long-term improvement.
Regarding consumers as the center, we advanced the R & D methodology to 2.0, driven the R & D by multi-dimensional insight, upgraded the consumer experience by opening up various platforms, and made up for the shortcomings of the 1.0 platform.
Brand innovation is upgraded to “heart” model. H: Promote ingenuity research and development through the rejuvenation of traditional Chinese medicine and Chinese herbal medicine, CO creation of medical research and customization of AI; E: Create a consumer insight model through grass planting platform, KOL trend, Wuxi Online Offline Communication Information Technology Co.Ltd(300959) business platform, etc; A: Upgrade the core of the brand to bring better consumption experience; R: Pay attention to the emotional connection with consumers and promote marketing innovation; T: Promote ecological co creation with major platforms and help brands out of the circle.
In terms of channel upgrading, based on the previous five core initiatives, promote the digital transformation of offline channels, online omni-channel data integration and enable fine operation, and omni-channel collaborative development.
At the same time, continue to improve the organizational atmosphere, create a talent development environment and improve organizational efficiency.
The development path of the company is clear, the strategic upgrading is continuously promoted, and the product strength and brand market competitiveness are expected to continue to improve, driving the high growth of sales. The optimization of organizational structure and the improvement of efficiency will bring about the continuous improvement of profitability. Profit forecast and investment rating: the company is optimistic that under the guidance of the new strategy, its business will continue to improve, its product strength and brand strength will continue to strengthen, and its performance will grow steadily under channel integration, digital empowerment and organizational optimization. We expect that the net profit attributable to the parent company in 22-24 years will be RMB 820 million, RMB 1.04 billion and RMB 1.21 billion, RMB 1.53 billion and RMB 1.78 million respectively, and the corresponding PE will be 31, 24 and 21 times respectively, maintaining the “recommended” rating.
Risk tip: the market competition intensifies, the sales of new products are less than expected, and the strategic upgrading and implementation are less than expected.
