\u3000\u30 Shaanxi Zhongtian Rocket Technology Co.Ltd(003009) 57 Yunnan Botanee Bio-Technology Group Co.Ltd(300957) )
Event:
The company issued the annual performance report for 2021, realizing a revenue of 4.022 billion yuan, a year-on-year increase of + 52.57%; The net profit attributable to the parent company was 863 million yuan, a year-on-year increase of + 58.77%; The non net profit deducted was 813 million yuan, a year-on-year increase of + 58.59%; The operating cash flow was 1.153 billion yuan, a year-on-year increase of + 167.44%. Among them, 21q4 achieved a revenue of 1.91 billion yuan, a year-on-year increase of + 56.66%; The net profit attributable to the parent company was 508 million yuan, a year-on-year increase of 54.66%.
Brief comment:
Revenue maintained rapid growth, and skin care products accounted for more than 90%. 1) By product, the sales revenue of skin care products business was 3.63 billion yuan, a year-on-year increase of + 54%, accounting for 91% of the total revenue; The income of medical devices reached 330 million yuan, a year-on-year increase of + 67%, accounting for 8%; The income of make-up was 50 million yuan, a year-on-year increase of – 19%, accounting for 1%. 2) By channel branch, the company achieved an online revenue of 3.3 billion yuan, a year-on-year increase of + 52%, accounting for 82%; The offline revenue was 700 million yuan, a year-on-year increase of + 58%, accounting for 18%. Tiktok Kwai line is the root line for the coordinated development, online multi platform global operation, Tmall platform has maintained a more robust growth, rapid growth of content media platforms such as shaking hands, fast hands, etc. 21 years, double 11 companies have achieved better performance in the major platforms. The Tmall platform Winona brand has been cosmetology TOP6, WinonaBaby has been awarded the baby skin care category TOP10. By the end of 21 years, the company had settled in more than 4000 Watson stores offline, covering more than 20000 OTC pharmacies, and opened Shanghai Lingkong experience center, the first brand image store in Hangzhou Yintai. 3) According to the distribution mode, the channel layout of the company is perfect, with online self operation accounting for the largest proportion, with self operation income of 2.5 billion (year-on-year + 53%, accounting for 63%) and distribution commission income of 1.5 billion (year-on-year + 54%, accounting for 37%). Among them, the revenue of Alibaba (tmall, etc.) platform accounted for 45%, year-on-year + 46%, and the growth rate of JD platform “Winona” exceeded 30%.
The gross profit margin is relatively stable, and R & D is consolidated to build competitive barriers. 1) Gross profit margin: in 2021, the gross profit margin was 76.01% / -0.24pct, basically the same as that of the previous year, and the gross profit margin in Q4 was 75.01% / -0.57pct; 2) Expense ratio: in 2021, the sales expense ratio is 41.79% / + 0.20pct, the management expense ratio is 6.10% / + 0.32pct, which is basically the same as last year, and the R & D expense ratio is 2.81% / + 0.42pct. By the end of 2021, the company had 236 R & D personnel, accounting for 10% of the total number of employees. It had completed clinical research and effect observation of dermatology in 63 hospitals, with a total number of 80 patents authorized, and successfully developed and launched more than 40 new products throughout the year; 3) Net interest rate attributable to parent company: the net interest rate attributable to parent company in 2021 is 21.45% / 0.82pct.
Build moat barriers in multiple dimensions, and open a new growth curve for sub categories. Product: Shumin moisturizing cream is a big single product of Winona star, accounting for a high proportion of the company’s main business income, which is stable at about 30%. Brand: Winona aims at sensitive skin care with clear positioning, and the differentiated positioning of sub line brands expands the track of strong effect skin care, anti-aging, whitening and sunscreen for infants and young children. In 2022, the company will focus on building high-end anti-aging brand aoxmed, develop functional food business and expand the territory of skin health. Channel: the channel layout is perfect, and online self operation accounts for the largest proportion. Offline OTC channels are steady and large-scale, and the layout of CS and other channels across the country is advancing in an orderly manner. Marketing: be familiar with the psychology of young consumer groups, conduct all-round efficient and diversified marketing, make close contact with experts in major hospitals with medical endorsement and academic marketing, and enhance the professionalism of the brand. The company has launched the “private domain operation” project in nearly 500 offline outlets across the country, and more than 100000 members have joined more than 1000 member communities. R & D: R & D investment is at the forefront of the industry, and pharmaceutical enterprises have strong genes. The sales revenue realized by core technology accounted for more than 95% of the main business revenue, and the transformation of R & D achievements was significant.
Investment advice
It is estimated that from 2022 to 2024, the company’s operating revenue will reach 5.598 billion yuan, 7.496 billion yuan and 9.675 billion yuan, with a year-on-year increase of 39.2%, 33.9% and 29.1%, corresponding to the net profit attributable to the parent company of 1.106 billion yuan, 1.420 billion yuan and 1.759 billion yuan, with a year-on-year increase of 28.2%, 28.4% and 23.9% respectively, corresponding to EPS of 2.61, 3.35 and 4.15 yuan respectively, and the PE of the stock price before response is 60, 47 and 38 times respectively Yunnan Botanee Bio-Technology Group Co.Ltd(300957) focuses on sensitive skin care, with significant track dividends. Compared with ordinary cosmetics, the growth rate is faster and the user stickiness is higher. The company’s large single products have formed a strong brand awareness in the hearts of consumers. With the further improvement of the company’s product matrix, the future growth can be expected to maintain the “buy” rating.
Risk tips
Risk of single product category structure; Risk of new product sales falling short of expectations; The risk of intensified industry competition; Risk of rising cost of online sales; Risk of recurrent outbreaks; Core technical personnel turnover risk.
