\u3000\u3 Shengda Resources Co.Ltd(000603) 719 Bestore Co.Ltd(603719) )
Events
On the evening of March 21, 2022, the company released its annual report for 2021: the revenue in 2021 was 9.324 billion yuan, an increase of 18.11% at the same time; The net profit attributable to the parent company was 282 million yuan, with a decrease of 18.06%.
Key investment points
Freight affects the performance in the fourth quarter, and the overall indicators are good
The company’s revenue in 2021 was 9.324 billion yuan, an increase of 18.11% at the same time; The net profit attributable to the parent company was 282 million yuan, with a decrease of 18.06%. Among them, the revenue of 2021q4 was 2.755 billion yuan, an increase of 16.53% at the same time; The net profit attributable to the parent company was – 34 million yuan, with a decrease of 142%. We speculate that it is due to the rise of raw materials and the increase of promotion subsidies. The gross profit margin in 2021 was 26.77% (with a decrease of 3.7pct), of which the gross profit margin in 2021q4 was 20.25% (with a decrease of 7.79pct), which was caused by the rise of freight costs; The net interest rate in 2021 was 3.03% (with a decrease of 1.33pct), of which the net interest rate in 2021q4 was – 1.26% (with a decrease of 4.66pct), which was caused by the decline of gross profit margin.
In 2021, the R & D cost was 40 million yuan, an increase of 17.64% at the same time, which was the company’s increase in R & D of new products. At the end of 2021, the contract liabilities were 249 million yuan, an increase of 56 million yuan month on month. The net operating cash flow in 2021 was 412 million yuan (an increase of 25%), which was due to the same increase of 18% in cash received from the sale of goods and the provision of labor services.
Products continue to push through the old and bring forth the new, and the balanced layout of all channels
In terms of products, in 2021, the revenue of nut speculation was 1.609 billion yuan (with an increase of 21%), the revenue of dried fruit and preserved fruit was 850 million yuan (with an increase of 6%), the revenue of meat snacks was 2.163 billion yuan (with an increase of 9%), the revenue of vegetarian mountain delicacies was 721 million yuan (with an increase of 3%), and the revenue of confectionery was 2.035 billion yuan (with an increase of 22%). By the end of 2021, the company had 1555 omni-channel SKUs, and 565 SKUs for new products in 2021. Among them, preserved pork has become a 500 million level single product in 2021, an increase of 41% at the same time. The company reshaped the new process of product launch and established a 35 day rapid product launch mechanism. A total of 49 new products were launched throughout the year, with an omni-channel terminal sales of 183 million. It created a variety of single products with an omni-channel terminal sales of more than 10 million in less than 6 months after listing, such as rye toast and big wave bread.
By channel, the online main business revenue in 2021 was 4.858 billion yuan, an increase of 21.42%. Online: offline revenue accounts for 53:47. The franchise business revenue was 2.556 billion yuan, an increase of 8.76% at the same time; The revenue of direct retail business was 1.409 billion yuan, an increase of 14.45% at the same time; Group purchase channel revenue of key customers was 321 million, an increase of 208.58% at the same time. By the end of 2021, the company had 2974 offline stores, and 619 new stores were opened in 2021, including 185 Direct stores and 434 franchise stores. Among them, 139 new stores were opened in Southwest China throughout the year, and 72 new stores were opened in South China through deep exploration of new resources and cooperation mode with big owners.
In terms of subregions, the revenue of central China in 2021 was 2.025 billion yuan (an increase of 3.6%), accounting for 22%; The revenue of East China was 771 million yuan (with an increase of 19%), accounting for 8%; The revenue of Southwest China was 552 million yuan (with an increase of 21%), accounting for 6%; The revenue of South China was 477 million yuan (with an increase of 12%), accounting for 5%; The revenue of other regions was 140 million yuan (with an increase of 49%), accounting for 2%.
Balanced layout of all channels and differentiated needs of subdivided groups
2022 planning: 1) balanced layout and development of all channels; 2) Strengthen the ability of product innovation and realize the two wheel drive of products and channels; 3) Increase investment in product R & D and create barriers to industry competition; 4) Promote the in-depth coordination of the supply chain and build the core competitiveness of the supply chain. In 2021, the company could reach 120 million of all channels, with more than 62 million 450 thousand members, including 34 million 410 thousand members, 11 million 990 thousand members, 13 million 190 thousand members, 3 million 600 thousand members and 2 million 150 thousand members of APP in 2021.
Among active members, 70% are women and 30% are men. The main consumer groups are cutting-edge white-collar workers, senior white-collar workers and young mothers aged between 18 and 40. In 2021, member sales accounted for about 61.16% of the company’s total sales.
In 2021, according to the special needs of subdivided groups and scenes such as children, women, fitness and tea break scenes, 86 products will be developed for listing and 47 reserve products. In 2021, the omni-channel terminal sales of “xiaoshixian” was 417 million yuan, an increase of 41.17% at the same time; Among them, the terminal sales of health and nutrition lollipop (sugar) series reached 128 million, accounting for more than 30%, and grew into a star series, driving the overall growth of the brand. In 2021, 28 new children’s snacks were launched, accounting for 35.17% of sales. New product innovation helped the rapid growth of the brand.
Profit forecast
It is estimated that the EPS from 2022 to 2024 will be 0.87/1.25/1.72 yuan, and the current share price corresponding to PE will be 35 / 24 / 18 times respectively. It will be covered for the first time and given a “recommended” investment rating.
Risk tips
Macroeconomic downside risk, consumption dragged down by the epidemic, the promotion of new products is not as expected, the risk of rising raw materials, the risk of further intensification of competition, etc
