\u3000\u30 Shaanxi Zhongtian Rocket Technology Co.Ltd(003009) 57 Yunnan Botanee Bio-Technology Group Co.Ltd(300957) )
Event overview
The company released the annual report of 2021. In 2021, the company achieved 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 net profit attributable to the parent company after deduction was 813 million yuan, a year-on-year increase of 58.59%. In a single quarter, the company achieved revenue of 507, 904, 701 and 191 million yuan in Q1 / Q2 / Q3 / Q4 in 2021, with a year-on-year increase of 59.32%, 45.14%, 47.29% and 56.66%; The net profit attributable to the parent company was 79 million yuan, 186 million yuan, 90 million yuan and 508 million yuan respectively, with a year-on-year increase of 45.83%, 75.13%, 64.29% and 54.67%.
Analysis and judgment:
Revenue side: the proportion of skin care products continues to increase. From the perspective of mutual penetration of sub products offline, the company’s skin care products / medical devices / Makeup / services and others achieved revenue of RMB 36.29/3.26/5.31/146 million respectively in 2021, with a year-on-year increase of 53.75% / 67.12% / – 18.76% / – 8.01%. Among them, the proportion of skin care products in operating revenue increased by 0.7pct to 90.22%. In terms of sub channels, the company’s online channel product sales achieved a revenue of 3.299.8 billion yuan, a year-on-year increase of 51.94%, accounting for 82.04% of revenue. Offline channel product sales achieved a revenue of 708 million yuan, a year-on-year increase of 57.76%. During the reporting period, the company adhered to the sales model based on offline channels and dominated by online channels, and applied Internet thinking to launch the “private domain operation” project in nearly 500 offline outlets across the country. More than 100000 members have joined more than 1000 member communities, successfully opening up offline and online, realizing the mutual penetration of offline and online and the in-depth coverage of consumer groups.
Profit side: the expenses are strictly controlled, and the net interest rate has increased
In 2021, the gross profit margin of the company decreased by 0.25 PCT to 76.01% year-on-year, and the net profit margin increased by 0.86 PCT to 21.48% year-on-year. By product, the gross profit margin of the company’s skin care products fell by 0.75pct to 75.37%. The gross profit margin of the company is relatively stable year-on-year. In terms of expenses, the company’s expense rate was 50.45% in 2021, a year-on-year decrease of 0.31pct. Among them, the sales expense ratio was 41.79%, down 0.21pct year-on-year. The management expense ratio was 6.10%, down 0.29pct year-on-year. The financial expense ratio was – 0.25%, a year-on-year decrease of 0.22pct, mainly due to the increase in the interest income of demand deposits obtained by the company from commercial banks compared with the same period of last year. R & D rate increased by 0.41pct to 2.81% compared to the same period last year. The main research departments were significantly affected by the R & D activities during the outbreak of New Coronavirus pneumonia in the same period last year. During the reporting period, the company’s R & D activities were carried out smoothly and normally.
Other important financial indicators
In 2021, the ending balance of the company’s monetary capital was 2.035 billion yuan, an increase of about 170.58% over the end of the previous year. The net cash flow from operating activities of the company was 1.153 billion yuan, a year-on-year increase of 167.44%. The company’s accounts receivable turnover rate was about 17.42 times / year, an increase of about 0.87 times / year compared with the same period last year.
Actively carry out brand building, and new products are expected to grow in large quantities
During the reporting period, the company continued to improve its brand reputation, and its core brand “Winona” officially announced the first brand spokesperson – well-known artist Shu Qi. At the same time, the company invited nearly 200 experts in the skin industry and the mainstream media to witness that “Winona” is the first anti sensitive new product that is released by Tmall small black box. It is the product of “double repair and live essence”. It has been honored as Tmall’s small black box sensitive muscle anti aging essence NO.1, leading to a new trend of sensitive skin care, skin care and anti aging. The company’s brand-new sub brand “Winona baby” tmall flagship store was officially put into operation in 2021, ranking the top 20 of the year. The “double 11” activity has become a cutting-edge and high growth brand in the industry, ranking the top 10 in the category of subdivided industries, achieving a year-on-year explosive growth of more than 10 times. The carefully created large popular “Shurun nourishing cream” series products have rushed into the top 3 of popular products in subdivided industries. The company’s new anti-aging brand “aoxmed” is a high-end layout. At present, three products have been recorded and approved. It is expected to be listed in May this year and launch offline medical and beauty institutions.
Investment advice
With the “Winona” brand as the core, the company focuses on the application of pure natural plant active ingredients to provide mild and professional skin care products, focusing on sensitive skin.
Relying on the company’s medical background, many hospital dermatology departments apply Winona to clinical adjuvant therapy. In recent years, the company has become one of the leading cosmetics manufacturers in China, and has set an industry benchmark for sensitive skin products. In the future, the company will actively expand its brand and product matrix and further improve the company’s marketing strategy of ” Wuxi Online Offline Communication Information Technology Co.Ltd(300959) combination”. Considering the rapid growth of the industry in which the company is located, and as the leader of Dermatology cosmetics, the growth rate of the company will be faster than that of the industry in the future. At the same time, the company’s new brands and new products will gradually increase in volume. We raised the company’s revenue forecast of 5.382/7.042 billion yuan in 2022 / 2023 to 5.472/7.141 billion yuan, and the revenue in 2024 was 9.054 billion yuan. Raise the company’s forecast of EPS of 2.61/3.44 yuan in 2022 / 2023 to 2.77/3.63 yuan, and EPS of 4.55 yuan in 2024. Corresponding to the closing price of 156.23 yuan / share on March 22, 2022, PE was 56.41/43.01/34.33 times respectively, maintaining the “buy” rating of the company.
Risk tips
1) industry competition intensifies. 2) The risk that the marketing model can not keep up with the market
