\u3000\u30 Shaanxi Zhongtian Rocket Technology Co.Ltd(003009) 57 Yunnan Botanee Bio-Technology Group Co.Ltd(300957) )
Core view
Both revenue and profit increased by more than 50%. In 2021, the company achieved a revenue of RMB 4.022 billion, a year-on-year increase of + 52.57%, a net profit attributable to the parent company of RMB 863 million, a year-on-year increase of + 58.77%, and a year-on-year decrease of non net profit of + 58.59%, which was within the previous performance forecast range as a whole. Quarterly, the company achieved a revenue of 1.91 billion yuan in Q4 last year, a year-on-year increase of + 56.66%, and a net profit attributable to the parent company of 508 million yuan, a year-on-year increase of + 54.67%. Despite the pressure on the consumption environment and repeated epidemics in the second half of last year, Q4 revenue still achieved accelerated growth.
Revenue split: mainly skin care products, with beautiful performance in all channels. 1) Sub products: skin care products, medical devices and make-up were + 53.75%, + 67.12%, - 18.76% year-on-year respectively. Among them, the revenue scale of skin care products accounts for more than 90%. Under the continuous promotion of new and upgraded products, the average selling price is + 8.80% year-on-year. While continuing to consolidate the advantages of large single products of "Shumin" series, the company will also actively expand other categories such as "whitening", "sunscreen" and "anti-aging". 2) tiktok: online revenue rose from +51.94% to 3 billion 300 million yuan, accounting for 82.34%, of which Tmall channel +45.6% accounted for 45.3%. Last year, the company actively worked on new platforms such as jitter and Kwai, to achieve effective incremental contribution. The offline revenue increased by 57.76% year-on-year to 708 million yuan, accounting for 17.66%, benefiting from the low base of the epidemic in the same period and accelerating the development of chain pharmacy channel cooperation.
Profitable operation: the profitability remains stable and the cash flow continues to improve. The gross profit margin of the company in 21 years is 76.01%, which is basically stable; The expense rate has improved, with the sales rate ranging from -0.21pct to 41.79% year on year and the management rate ranging from -0.29pct to 6.10% year on year. Under the rising pressure of industry flow cost, a stable profit level has been achieved through fine expense control. Operating capacity: 134 days of inventory turnover and 19 days of accounts receivable turnover in 21 years, which is generally stable; The net operating cash flow was 1.153 billion yuan, a year-on-year increase of + 167.44%.
Risk tip: the consumption environment is under pressure, the launch of new products is less than expected, and the promotion of offline channels is less than expected.
Investment suggestion: the leading advantages of effective skin care are highlighted, multi brands help grow, and maintain the "buy" rating
As the company's leading role, the overall growth rate of the cosmetic industry has slowed down in the second half of last year. But the company's main brand Winona has been continuously upgrading its volume and price through the positive promotion and upgrading of the product side. On the other hand, on the basis of maintaining the Tmall tiktok on the channel side, it accelerates the construction of the voice platform business, and promotes the construction of the private domain system, and takes a professional channel under the line, and actively plays the Wuxi Online Offline Communication Information Technology Co.Ltd(300959) synergy advantage. So as to finally achieve growth far better than the industry average. In addition, in the future, the company is expected to accelerate the layout of multiple brands through endogenous extension, create a second growth curve and realize the construction of skin health ecology; We expect that the company's EPS for 22-24 years is 2.81/3.80/5.14 yuan / share, and the current share price corresponds to PE = 56 / 41 / 30x, maintaining the "buy" rating.
