\u3000\u3 Shengda Resources Co.Ltd(000603) 719 Bestore Co.Ltd(603719) )
Event: Bestore Co.Ltd(603719) issue the annual report for 2021. In the whole year, the total operating income was 9.323 billion yuan, a year-on-year increase of + 18.11%, the net profit attributable to the parent company was 282 million yuan, a year-on-year increase of – 18.06%, and the non net profit deducted was 206 million yuan, a year-on-year increase of – 25.15%. Q4 achieved a total operating income of 2.755 billion yuan, a year-on-year increase of + 16.53%, a net profit attributable to the parent company of – 34 million yuan, a year-on-year increase of – 142.2%, and a deduction of non net profit of – 38 million yuan, a year-on-year increase of – 164.85%.
Accelerate the online layout, and the profit is under pressure at different stages; Offline exhibition stores continued, and the structure was slightly optimized. 1) tiktok tiktok: online revenue increased by 21.42% to 4 billion 857 million yuan in 2021, and the company focused on the layout of new channels, focusing on the fast track platform. During the period, Kwai Chung platform revenue increased 3.62 times compared with the same period last year. In the face of repeated epidemics and rising raw material prices, Q4 company optimized and adjusted its business strategy, strengthened the layout of social e-commerce, increased the proportion of online and increased marketing expenses, and gradually put pressure on the profit side of the company. Q4 gross profit margin was 20.2%, down 4.33pct month on month (Q3 transportation expenses were adjusted to operating costs); The sales expense rate was 15.3%, up 2.13 PCT month on month; Due to the accelerated online layout, the gross sales difference of Q4 fell sharply. 2) Offline: in 2021, offline revenue increased by 16.31% to 4.286 billion yuan. 619 new stores were added, including 185 / 434 directly operated / franchised stores. Considering the closing of stores, the net increase of 273 to 2974 stores (907 / 2067 directly operated / franchised stores) was considered. Among the single store revenue, the direct operated / franchised stores were – 5.4% / + 6.4% year-on-year, and the offline channels were still in slow repair. 3) Group purchase: in 2021, the group purchase channel of key customers expanded rapidly, with an increase of 208.58% to 321 million yuan. Among them, the provincial gift distribution agent has covered 14 provinces in China, and has developed a new distribution model of industry associations.
Actively promote new products, optimize product matrix, research and development drive new products to perform brilliantly. In 2021, the number of SKUs of the company was 1555, with 565 new SKUs in the whole year. Focusing on the research and development of core categories, the company has achieved effective results in product innovation in market segments such as children’s snacks and festival gift boxes. Among them, around the upgrading and change of users’ taste, the first 500 million level large single product pork preserved was launched, with a year-on-year increase of more than 41%; The omni-channel terminal sales of children’s snack brand “xiaoshixian” was 417 million yuan, a year-on-year increase of 41.17%; The operating revenue of gift box products increased by 72.10% over the previous year. In terms of promoting new processes, the company reshaped the new process of products, established a 35 day rapid product launch mechanism, and a total of 49 new products were launched throughout the year.
Profit forecast: considering the rapid growth of the company’s online channels, the early layout is expected to share the flow dividend of new channels. We expect the revenue of 2022 / 23 / 24 to be 10.96/127.4/14.7 billion yuan, and the net profit attributable to the parent company to be 3.7/4.4/520 billion yuan, a year-on-year increase of + 32.7% / 17.3% / 17.5%. The current market value corresponds to pe32.5% 5 / 27.7 / 23.6 times, maintaining the “overweight” rating.
Risk tip: the epidemic repeatedly affects offline mobile sales, the growth rate of online e-commerce slows down, and the industry competition intensifies
