\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 315 Shanghai Jahwa United Co.Ltd(600315) )
The company released the annual report: in 2021, the company achieved operating revenue of RMB 7.646 billion / + 8.73%, net profit attributable to the parent company of RMB 649 million / + 50.92%, and non net profit attributable to the parent company of RMB 676 million / + 70.76%. The net operating cash flow is 993 million yuan / + 54.43%, and the basic earnings per share is 0.97 yuan / + 51.56%. Among them, the revenue of single Q4 is 1.816 billion yuan / + 8.71%; The net profit attributable to the parent company is RMB 229 million / + 93.75%, and the non net profit attributable to the parent company is RMB 202 million / + 68.26%. The performance is in line with expectations.
Focusing on skin care products, the brand repurchase rate has increased significantly: according to the disclosure of the annual report, according to categories, the company will vigorously develop skin care products brands with high gross profit in 2021, accounting for 35% of revenue, with a year-on-year growth rate of about 22%. In terms of brands, Yuze: tmall Guochao day ranks first in domestic beauty products, the number of brand customers has increased by about 590000 to 3610000, and the repurchase rate is 42.58% / + 6.22pcts. Baicaoji: Streamline SKU, launch new products based on Nobel Prize research, and create plant herbal technology. The number of brand customers increased by about 80000 to 1930000, and the repurchase rate reached 41.61% / + 7.88pcts. Six gods: extend product categories, join hands with new spokesmen, and strive to make the brand younger, more scene oriented and more four seasons oriented. Goff: increase the proportion of high-end men’s skin care and launch new cleansing products. MAXAM: reverse the downward trend and develop the sinking market in low-line cities.
Online e-commerce leads growth and offline embraces new retail: in 2021, the company achieved online channel revenue of 3.211 billion yuan / + 7.90pcts, accounting for 42.04%, of which e-commerce accounts for 34.63%. By innovating self broadcast content and diversified platforms, the company gets rid of the impact of the single playing method of tmall platform and super head live broadcast and the decline of community group purchase business. Offline revenue reached 4.427 billion yuan / + 9.25 PCTs, actively embraced new retail, closed 111 long tail stores, and improved channel operation capacity through digital empowerment and private domain operation.
Increase in gross profit margin for cost reduction and efficiency enhancement: in 2021, the company achieved a gross profit margin of 58.73% / + 2.84pcts and a single Q4 gross profit margin of 45.74% / + 9.24pcts, which was caused by adjusting the product structure, including increasing the sales proportion of skin care products with high gross profit margin and the sales proportion of single products with high gross profit margin in the category, adding the reasons for optimizing the product formula at the cost side and simplifying the product packaging. In terms of rates, in 2021, the sales expense rate is 38.54% / + 1.02pcts, the management expense rate is 10.34% / + 0.09pct, and the R & D expense rate is 2.13% / + 0.08pct. Although the sales expense rate increases as a whole, the marketing expense rate has a downward trend after deducting factors such as wages and benefits; The rate of administrative expenses is basically the same; The R & D cycle will be reduced from 12.5 months to 8.5 months, and the R & D investment rate will be adjusted.
The turnover days of receivables and inventories decreased significantly, and the operating capacity improved: the net operating cash flow of the company in 2021 was 993 million yuan / + 54.34%, mainly due to the year-on-year increase in sales revenue; The turnover days of accounts receivable decreased by 3 days to 51.76 days, which was caused by accelerating the recovery of dealer credit; The turnover days of inventory receivable decreased by 11 days to 99.17, which was due to the removal of SKUs with long tails.
Investment suggestion: Buy-A investment rating, complete the layout of three-dimensional brands, smooth multi-dimensional channel adjustment, and look forward to further optimization of efficiency. The market share of the company’s main brands is in the forefront and continues to improve, and the brands grow rapidly during the cultivation period; After the adjustment of online channels, remarkable results have been achieved, and offline channels have expanded steadily. The three-dimensional brand layout of the company has been completed, the multi-dimensional channels have been adjusted smoothly, and the efficiency is expected to be further optimized. In the future, it is expected to rely on the leading scale advantage to achieve sustained and stable growth. It is estimated that the performance growth rate from 2022 to 2024 will be 23.9% / 27.7% / 23.0%, corresponding to PE of 31 / 25 / 20x.
Risk tip: covid-19 epidemic continues to deteriorate, macroeconomic growth slows down, channel structure risks, new product cultivation is not as expected, etc.
