\u3000\u30 Shaanxi Zhongtian Rocket Technology Co.Ltd(003009) 57 Yunnan Botanee Bio-Technology Group Co.Ltd(300957) )
Event description
The company recently released its annual report for 2021, which realized an operating revenue of 4.022 billion yuan / + 52.57% in 2021; The net profit attributable to the shareholders of the listed company is 863 million yuan / + 58.77%; The deduction of non net profit attributable to the shareholders of the listed company was 813 million yuan / + 58.59%. 21q4 achieved a revenue of 1.91 billion yuan / + 56.66%, and a net profit attributable to the parent company of 508 million yuan / 54.67%.
Event comments
The revenue and net profit increased rapidly, and single Q4 contributed 60% of the performance. In terms of revenue, the company achieved a revenue of 4.022 billion yuan in 2021, a year-on-year increase of + 52.57%. The sales scale and sales revenue increased rapidly, and the popularity of products and brands further improved. In terms of net profit, the net profit in 21 years was 863 million yuan, a year-on-year increase of + 58.77%. With the gradual acceleration of the growth of the company’s revenue since the second half of the year, the growth of net profit gradually slowed down, which was mainly affected by the increase of Q4 sales expenses. However, under the siphon effect of double 11 and double 12 Shopping Festival, single Q4 contributed nearly 60% of the annual profit.
Skin care products contributed to the main revenue, and the growth of online distribution channels accelerated. By category, in 2021, the company’s revenue of skin care / medical devices / cosmetics category was RMB 3.629 billion / 3.26 billion respectively, with a year-on-year increase of + 53.75% / + 67.12% / – 18.77% respectively, of which skin care category accounted for more than 90%, and the growth rate of medical devices was high. In terms of channels, the proportion of online / offline channels of the company in 2021 was 82.33% / 17.67% respectively, of which online self operation was the main sales channel. The sales of online self operated / distribution and consignment channels were 2.532767 billion yuan respectively, with a year-on-year increase of + 52.72% / + 49.42%, and the proportion of channels in the main business was 63.19% / 19.15%, which remained basically stable compared with the same period of the previous year. The sales of self-employed and third-party sales platforms increased by + 71.7 billion, accounting for + 49.6% year-on-year; Ali Kwai Ali, the main sales platform, has sales of 1 billion 872 million yuan, sales increased +45.56%, and growth rate increased more than the same time, accounting for 45.36% of the channel. In 21 years, the company increased its resources to invest in tiktok and other emerging e-commerce providers.
In depth cooperation with chain pharmacies offline, the channel growth rate is higher than online. Offline, in the past 21 years, the company has deeply cooperated with OTC customers, actively launched strategic cooperation projects with regional chain leaders such as Shandong and Shaanxi, seized the opportunities of Internet-based chain pharmacies and digital transformation of pharmacy members, and actively integrated into the new offline retail cooperation system and mode. OTC channels have covered more than 20000 and settled in more than 4000 Watson stores. The sales volume of offline distribution and consignment channels was 706 million yuan, a year-on-year increase of + 58.27%, slightly higher than that of online channels, accounting for 17.56%, with a slight increase. In the past 21 years, the company launched the “private domain operation” project in nearly 500 offline outlets across the country, with more than 100000 members joining more than 1000 member communities. Through unified and professional services and exchanges, the company increases the loyalty of private domain members and improves the position in the vertical field.
During the period, the rate continued to decline, and the cash flow increased rapidly with the income. In terms of gross profit margin, the company achieved sales gross profit margin of about 76.01% in 21 years, with a slight decrease of 0.24pct year-on-year, which remained basically stable; The net interest rate attributable to the parent company was 21.45%, with a year-on-year increase of 0.84pct; In terms of expense rate, the expense rate of the company during the 21 year period was 50.45%, a year-on-year decrease of 0.31pct. The effect of expense control of the company was good in the first half of the year. In the second half of the year, driven by the shopping festival, the marketing investment was increased, and the rate showed a slight increase. Although the company increased the precise investment in brand image promotion and publicity expenses, personnel expenses and e-commerce channel expenses, resulting in a year-on-year increase in sales expenses of + 51.81%; The salary cost of management personnel and other administrative expenses increased, resulting in a year-on-year increase of management expenses + 45.57%, but the increase of expenses basically matched the increase of revenue. The sales / management rate decreased by 0.21pct/0.29pct respectively year-on-year. During the period of influence, the rate decreased as a whole, and the overall cost control efficiency was relatively high. In 2021, the company’s operating cash flow was 1.153 billion yuan, with a year-on-year increase of 167.44%, mainly due to the increase of cash flow caused by the rapid growth of product sales revenue.
Investment advice
The company focuses on sensitive skin care, with clear brand positioning, basically formed brand matrix, gradually established brand advantages and high loyalty of main brands. In the past 21 years, Winona brand ranked first in the Chinese market of dermatological skin care products, and its market share increased 2pct year-on-year. It is estimated that the EPS from 2022 to 2024 will be 2.79/3.91/5.16 yuan respectively, corresponding to the closing price of the company on March 22 of 156.23 yuan, and the PE from 2022 to 2024 will be 55.92x/39.93x/30.28x respectively, maintaining the “buy” rating.
There are risks
High end foreign brands and local cutting-edge brands bring the risk of intensified market competition; Risk of relative concentration of sales platform and brand; Risks of entrusted processing; Covid-19 epidemic brings uncertainty risk.
