\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 332 Guangzhou Baiyunshan Pharmaceutical Holdings Company Limited(600332) )
Conclusions and suggestions:
Company performance: in 2021, the company achieved revenue of 69.01 billion yuan, yoy + 11.9%, recorded net profit of 3.72 billion yuan, yoy + 27.6%, and net profit after deduction of non yoy + 25.8%. The company’s performance is in line with expectations, and the rapid growth is mainly due to the relatively low base period in 2020 under the influence of the epidemic. Among them, Q4 achieved a revenue of 15.48 billion yuan in a single quarter, yoy + 4.6%, and recorded a net profit of 410 million yuan, yoy + 59.3%. In addition, the company plans to pay a dividend of 6.87 yuan for every 10 shares, and the dividend rate of A-Shares is about 2.3%.
After the epidemic, all sectors recovered, and the annual cash flow performance was good: from the perspective of business, the company’s Danan pharmaceutical sector achieved a revenue of 10.79 billion yuan, yoy + 6%, gross profit margin of 44.1%, an increase of 7.9 percentage points year-on-year. On the one hand, the market demand picked up after the epidemic control, on the other hand, the company strengthened the promotion of core varieties, and Jinge and Zishen Yutai pills achieved rapid growth. The big health sector achieved a revenue of 10.85 billion yuan, yoy + 38.1%, mainly due to the recovery of catering and ready to drink market demand after the recovery of the epidemic. In addition, the company promoted the rejuvenation of brands and launched creative products such as surname cans, blind box cans and Jiyun cans, which also promoted the growth of product sales, while the gross profit margin decreased slightly by 0.5 percentage points to 47.3% year-on-year, which is estimated to be related to the diversification strategy of the company to cultivate some potential products. The company’s large commercial sector achieved a revenue of 46.78 billion yuan, yoy + 8.3%. It recovered significantly after the epidemic, with a gross profit margin of 6.6%, a slight increase of 0.2 percentage points year-on-year. The company achieved an operating cash flow of 5.67 billion yuan, yoy + 869.5%, an increase of about 13% compared with the non epidemic period in 2019.
The gross profit margin increased significantly, and the sales expense rate also increased: the company’s comprehensive gross profit margin was 19.2%, an increase of 2.3 percentage points year-on-year. With the recovery of revenue scale, the gross profit margin recovered significantly. After the recovery of the epidemic, the sales promotion efforts increased, the sales expense rate increased by 1.2 percentage points year-on-year to 8.6%, the management expense rate was 2.9%, which was flat year-on-year, the R & D expense was 1.3%, increased by 0.3 percentage points year-on-year, and the financial expense rate was – 0.2%, decreased by 0.2 percentage points year-on-year.
Profit forecast and investment suggestions: we expect the company to realize net profits of 4.18 billion yuan and 4.7 billion yuan respectively in 2022 and 2023, yoy + 12.3% and + 12.5% respectively, EPS of 2.57 yuan and 2.89 yuan respectively, PE corresponding to A-Shares of 12 times and 10 times respectively, and PE corresponding to H shares of 7 times and 6 times respectively. The company’s performance has recovered significantly after the epidemic. At present, the valuations of a and H are low, and the investment proposal of “buying” is maintained.
Risk tip: the sales competition of Wanglaoji herbal tea intensifies, and the sales growth of Southern medicine is less than expected
