\u3000\u3 Shengda Resources Co.Ltd(000603) 719 Bestore Co.Ltd(603719) )
Q4 revenue growth accelerated month on month, with short-term pressure on the profit side
The company released its annual report for 2021. In 2021, it realized an operating revenue of 9.324 billion yuan (+ 18.11%) and a net profit attributable to the parent company of 282 million yuan (- 18.06%). Among them, 2021q4 achieved an operating revenue of 2.755 billion, a year-on-year increase of 16.53%, a month on month increase of 28.27%, a net profit attributable to the parent company of - 34 million yuan (- 142.17%), and a loss in the first quarter. Q4 company's revenue growth further accelerated, but the company optimized its business strategy under the influence of factors such as rising raw material prices and multi-point spread of the epidemic, resulting in a significant increase in promotion costs and storage costs, resulting in short-term pressure on the profit side. Considering the repeated impact of the epidemic on offline stores, passenger flow and changes in online traffic rules, we lowered the company's net profit attributable to the parent company in 20222023 to 372 (- 188) / 473 (- 212) million yuan respectively, increased the net profit attributable to the parent company in 2024 to 611 million yuan, corresponding to EPS of 0.93/1.18/1.52 yuan respectively, and the current share price corresponding to PE of 20222024 is 30.2/23.8/18.4 times respectively, which is at a reasonable level and maintains the "buy" rating.
Driven by product innovation and channel expansion, the operating revenue increased steadily
On the product side, there were 565 new SKUs in 2021 and 1555 Omni channel SKUs at the end of the year. Focusing on the research and development of core categories, the company has achieved effective results in children's snacks, festival gift boxes and other market segments: to create the first 500 million level large single product preserved pork, with a year-on-year increase of more than 41%; The terminal sales of children's snack brand "xiaoshixian" was 420 million yuan, a year-on-year increase of 41.2%, of which the sales of star single product health and nutrition stick reached 130 million yuan; The revenue of gift box products increased by 72.1% year-on-year. At the same time, the company has established a 35 day fast product launch mechanism and created a variety of single products with sales of more than 10 million in less than June, such as rye toast and big wave bread. Channel end, the company's online business has been transformed into fine user operation, and tiktok has expanded rapidly to expand the new channels such as social business / community electricity providers, and realized revenue of 4 billion 860 million yuan (+21.4%), among which the battalion platform revenue increased 3.6 times compared with the same period. There are 619 new offline stores (185 directly operated and 434 franchised). Considering the net increase of 273 stores after closing, the revenue of single store increased by 5.6% year-on-year and the offline revenue increased by 16.3% year-on-year to 4.29 billion yuan.
Omni channel integrated development superimposed on the creation of popular products in market segments, and the profitability can be improved in 2022
Looking forward to 2022, the company will ensure the steady growth of revenue through the integrated development of Wuxi Online Offline Communication Information Technology Co.Ltd(300959) all channels and the continuous exploration of popular products in market segments, and overcome the cost pressure through product matrix optimization and in-depth coordination of supply chain. The investment of superimposed expenses may decline steadily, and the profitability of the company can be improved.
Risk tips: the expansion of offline stores is lower than expected, the expansion of categories is lower than expected, the continuous impact of online channels, etc.
