\u3000\u30 Shaanxi Zhongtian Rocket Technology Co.Ltd(003009) 57 Yunnan Botanee Bio-Technology Group Co.Ltd(300957) )
Key investment points
Event: the company released its 2021 annual report. In 2021, it realized an operating revenue of 4.02 billion yuan, a year-on-year increase of 52.3%; The net profit attributable to the parent company was 860 million yuan, a year-on-year increase of 58.8%; The net profit deducted from non parent company was 810 million yuan, with a year-on-year increase of 58.6%. 2021q4 achieved a revenue of 1.91 billion yuan, a year-on-year increase of 56.7%; The net profit attributable to the parent company was 510 million yuan, a year-on-year increase of 54.7%.
Wuxi Online Offline Communication Information Technology Co.Ltd(300959) made concerted efforts, and the main business grew brightly. In 2021, the company achieved substantial growth in revenue, continued to increase multi platform investment in online channels, and combined with a variety of marketing methods to expand brand awareness; The impact of the offline epidemic weakened, and the head chain settled in OTC accelerated. In terms of channels, online channels achieved a revenue of 3.3 billion yuan in 2021, with a year-on-year increase of 51.9%, accounting for 82.3%; Offline channels achieved a revenue of 710 million yuan, a year-on-year increase of 57.8%, accounting for 17.7%. In terms of products, the revenue of skin care products business was 3.63 billion yuan, a year-on-year increase of 53.8%, accounting for 90.2%; Medical devices achieved a revenue of 330 million yuan, a year-on-year increase of 67.1%, accounting for 8.1%. Skin care products are the main business of the company with the largest proportion. As the domestic leader of efficacy products, it continues to maintain a stable high growth trend.
The profit structure is stable and the performance continues to grow. In 2021, the company’s profit growth was higher than its revenue, and its profitability increased steadily. During the reporting period, the company’s gross profit margin was 76%, and the gross profit margin of its main business skin care products was 75.4%, with a relatively stable year-on-year performance. On the expense side, in 2021, the company’s sales expense rate and management expense rate were 41.8% and 6.1% respectively, with a year-on-year decrease of 0.21pp and 0.29pp, and the expense rate was optimized. The company achieved a net interest rate of 21.5%, a year-on-year increase of 0.9pp, and its profitability was improved.
The large item strategy continues to take effect, and the sub brands contribute to the second growth curve. The company’s main muscle sensitive maintenance restoration, the main brand “Winona” has become a functional skin care products leading products, in 2021 double eleven period is the only Tmall beauty category TOP10 brand, has “cream cream + sunscreen” two big explosive products, firmly firmly “Shu Min” product market hegemony. In addition, the company actively promotes the incubation of sub brands, and the sub brand “winonababy”, which focuses on infant care, has officially opened tmall flagship store in 2021. The double eleven has achieved a year-on-year growth of more than 10 times, and will become the second growth curve of the company in the future.
Profit forecast and investment suggestions. It is estimated that the company’s EPS from 2022 to 2024 will be 2.84 yuan, 3.95 yuan and 5.28 yuan respectively, and the net profit attributable to the parent company will maintain a compound growth rate of 37.4% in the next three years. Considering the leading position of the company’s functional skin care products as domestic products, the sub brand contributed new revenue growth momentum and maintained the “hold” rating.
Risk tip: the risk of intensified industry competition and the risk of new product expansion being less than expected.
