\u3000\u30 Shaanxi Zhongtian Rocket Technology Co.Ltd(003009) 57 Yunnan Botanee Bio-Technology Group Co.Ltd(300957) )
Event: the company announced its performance in 2021. In 2021, the operating revenue was 4.022 billion yuan, with 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%, and the net profit not attributable to the parent company was 813 million yuan, a year-on-year increase of 58.59%.
Driven by multi category sales, the company’s performance grew strongly. In 2021, the company’s skin care category achieved a revenue of 3.629 billion yuan, a year-on-year increase of + 53.75%; Medical devices achieved a revenue of 326 million yuan, a year-on-year increase of + 67.12%. In terms of products, the star single product Shumin special care cream continued to be sold in large quantities, and the clear sunscreen continued to grow rapidly, becoming the second largest selling single product after the special care cream. In addition, the new large single product “freeze-drying mask” also successfully circle, contribute to sales increments.
Wuxi Online Offline Communication Information Technology Co.Ltd(300959) made concerted efforts, and the emerging channels performed well. Tiktok Kwai: 1) on-line company’s new channels such as jitter and fast tiktok are used to achieve sales growth by using high-frequency self broadcasting mode, and sales of vibrato sales are nearly 9%. 2) Offline, covering Watson’s channels and focusing on improving store efficiency and output in the follow-up; And actively expand chain pharmacies.
The profitability is stable and the cost side is well controlled. In 2021, the company’s comprehensive gross profit margin was 76.01%, which remained stable as a whole. The gross profit margins of skin care products, color cosmetics and medical devices reached 75.37%, 70.75% and 84.69% respectively. Thanks to the excellent management ability and scale effect, the company has good cost control, and the management rate decreased to 6.1% in 2021, with a year-on-year increase of -0.3pct; The sales expense ratio decreased to 41.8%, with a year-on-year increase of -0.2pct. In addition, in 2021, the company increased its core technological innovation and developed more than 40 new products such as “barrier repair”, “compact repair” and so on. Therefore, the R & D rate in 2021 increased by + 0.4pct to 2.81% year-on-year.
Profit forecast and investment suggestions: as the leader of skin care products at the dermatological level, the company continues to deepen the “multi brand + multi category + Omni channel” matrix and actively expand new products by relying on strong brand strength. The new brand Winona baby continues to increase its volume and further consolidate the second growth curve. It is estimated that the company will realize a net profit attributable to the parent company of RMB 1.22 billion, 1.67 billion and 2.27 billion from 2022 to 2024, corresponding to 54, 40 and 29 times of PE. Give the company a “buy” rating.
Risk tip: the expansion of new products is not as expected; Industry competition intensifies; The prosperity of the industry has declined.
