\u3000\u30 Shaanxi Zhongtian Rocket Technology Co.Ltd(003009) 57 Yunnan Botanee Bio-Technology Group Co.Ltd(300957) )
The performance increased more than expected, and the net profit attributable to the parent increased by 59%. In 2021, the company achieved a revenue of about 4.022 billion yuan (YoY + 53%), a net profit attributable to the parent company of about 863 million yuan (YoY + 59%), and a net profit not attributable to the parent company of about 813 million yuan (YoY + 59%). Non recurring profit and loss is 50 million yuan, mainly including 34 million yuan of government subsidies and 19 million yuan of entrusted financial management income. In 2021, the overall gross profit margin decreased by 0.25 PCTs to 76.01%, the sales rate decreased by 0.21 PCTs to 41.79%, the management rate decreased by 0.29 PCTs to 6.10%, and the R & D rate increased by 0.41 PCTs to 2.81%, driving the overall parent net profit margin to increase by 0.84 PCTs to 21.45%. Among them, the revenue of single Q4 is about 1.91 billion (YoY + 58%), the net profit attributable to the parent is about 508 million (YoY + 55%), and the net profit deducted from non attributable to the parent is about 480 million (YoY + 51%). The cash flow during the period was good. By the end of 2021, the monetary capital was 2.035 billion (YoY + 171%), and the operating cash flow was 1.153 billion yuan (YoY + 168%).
Product side: Winona’s brand effect is obvious, the efficacy circle is expanded + category innovation is expanded, and multiple skin care matrices are expanded. In terms of products, the revenue of skin care products was 3.629 billion yuan (YoY + 53.77%), accounting for about 90.23%, medical devices accounted for 8.13%, and makeup accounted for 1.32%. Winona, the main brand, ranked first in the China market of skin care grade skin products in 2021. The market share increased by about 2pcts. The cream and sunscreen two super explosive products were brightest, the status of the large single products continued to be stable, the essence of Shu Min, the freeze-drying mask and other relay driven growth, the work efficiency end continued to extend, and the whitening + anti-aging products were released. The trend of subdivision products increased significantly, the toner market rank increased from seventh to fourth, and the mask Market rank increased from eighth to seventh. Winona was honored as the top 6 of tmall’s beauty and skin care category on November 11, and the annual brand growth rate of jd.com platform exceeded 30%.
Channel side: in-depth coverage of consumers, private domain construction + OTC expansion and upgrading continued to advance. In terms of channels, 1) the revenue of online channels is 3.3 billion yuan (YoY + 51.94%), accounting for 82.34%, and the gross profit margin is 74.37% (-0.82pcts), including 2.532 billion yuan (YoY + 52.72%), accounting for 63.19% of the total revenue, and 767 million yuan (YoY + 49.42%) through / on behalf sales. In addition, the revenue of online self built platform is 450 million (YoY + 29.46%), accounting for 13.65% of the online revenue. Among the third-party platforms, Alibaba’s revenue is 1.818 billion yuan (YoY + 45.56%), accounting for 45.36% of the total revenue. Remarkable achievements have been made in private domain construction. In 2021, the number of registered users of the main self built platforms increased by 853200 to 2983500, and the customer unit price reached 111250 yuan. The company started private domain operation in nearly 500 offline outlets across the country, and a total of 10W + members joined 1000 + communities; 2) The offline revenue is 708 million yuan (YoY + 57.76%), and the gross profit margin is 83.96% (+ 1.56pcts). The company’s OTC channels have covered more than 20000 in total. It has started strategic cooperation with regional chain leaders such as Shandong and Shaanxi and integrated into the offline new retail system. By the end of 21, it has settled in more than 4000 Watson stores. In the future, it will continue to strengthen e-commerce cooperation, build whole network marketing, and increase the construction of counter service platform through new retail. In addition, it will gradually expand the overseas market in Southeast Asia and look for new growth points.
R & D overweight + Digital empowerment, continuous brand extension, and building a large healthy ecological territory. 1) R & D side: during the period, the R & D cost of the company was 113 million yuan, and the number of R & D personnel increased from 104 to 236, accounting for 9.92% of the total number. In 2021, the company successfully developed and launched more than 40 new products, completed clinical research and effect observation of dermatology in 63 hospitals, published 154 academic papers, and was included in core journals such as SCI. A total of 22 authorized invention patents and 31 utility model patents were declared and obtained. The company will lead the construction of Yunnan characteristic plant extraction laboratory, focus on the research and development of functional cosmetics, functional food and drugs based on Yunnan characteristic plants, integrate human resources and provide support for industrialization. 2) Supply chain: the informatization ability improves the management granularity. The company launched the omni channel middle platform system to get through the order data and national inventory information of all business departments and brands, realize the whole warehouse and inventory management, and build a flexible supply chain. The self built logistics base in Shanghai took the lead in realizing the automation of warehousing. 3) Brand extension: the company continues to expand the territory of great skin health, “winonababy” has become the dark horse in the industry, ranking the top 20 in the annual ranking and the top 10 in the sub categories of double 11, with a year-on-year explosive growth of more than 10 times. The company will gradually improve the multi brand matrix of “effective skin care products + medical beauty platform + Fumei app”. In addition, it will focus on building a high-end anti-aging brand aoxmed in 22 years, develop functional food and gradually precipitate a large healthy ecological landscape.
Profit forecast and investment suggestions. As the leader of skin skin care products track, the main brand continues to enjoy the high growth of the track. Self research and investment multi brand strategy is ready to contribute to the second growth pole. Based on the performance of the annual report, we adjusted and predicted that the company’s revenue from 2022 to 2024 will be 5.563/74.35/9.775 billion yuan, an increase of 38.3% / 33.6% / 31.5% respectively, and the expected net profit attributable to the parent company will be 1.208/16.36/2.177 billion yuan, an increase of 40.0% / 35.4% / 33.1% respectively. The current market value of the company is 66.2 billion yuan, corresponding to 55 times of PE in 2022, maintaining the “buy” rating.
Risk warning: industry competition intensifies; Product promotion is not as expected; Product quality management risk.
