\u3000\u30 Shaanxi Zhongtian Rocket Technology Co.Ltd(003009) 57 Yunnan Botanee Bio-Technology Group Co.Ltd(300957) )
The income and net profit attributable to the parent company in the 21st year increased by 52.57% and 58.77% respectively year-on-year
In 2021, the company achieved an operating revenue of 4.022 billion yuan, a year-on-year increase of 52.57%, and a net profit attributable to the parent company of 863 million yuan, a year-on-year increase of 58.77%, which was higher than expected. Deduct the non net profit of 813 million yuan, with a year-on-year increase of 58.59%, EPS of 2.12 yuan, and the proposed dividend per share of 0.60 yuan (including tax).
From quarter to quarter, the operating revenue from 2021q1 to Q4 was + 59.32%, + 45.14%, + 47.29%, + 56.66% year-on-year respectively, and the net profit attributable to the parent company was + 45.83%, + 75.13%, + 64.29%, + 54.67% year-on-year respectively. Q4 is generally the season with the largest proportion of the company’s revenue, and the revenue growth in 21q4 was accelerated month on month and the business growth was better. In the past 21 years, Wuxi Online Offline Communication Information Technology Co.Ltd(300959) have achieved rapid growth, and skin care products continue to be strong
1) from the perspective of different channels, the online and offline revenue in the past 21 years were 3.300 billion yuan and 722 million yuan respectively, accounting for 82.04% and 17.96% of the total revenue, and the revenue was + 51.94% and + 55.51% year-on-year respectively. In online channels, the proportion of self operated, distribution + commission sales modes in the total revenue was 63.19% and 19.15% respectively, and the revenue was + 52.72% and + 49.42% year-on-year respectively; In offline channels, the proportion of self operated and distribution + consignment modes in total revenue was 0.04% and 17.62% respectively, with a year-on-year increase of – 34.52% and + 58.27% respectively.
2) in terms of categories, the proportion of skin care products, medical devices, make-up, services and other income in 21 years was 90.22%, 8.10%, 1.32% and 0.36% respectively, and the income was + 53.75%, + 67.12%, – 18.76% and – 8.01% respectively year-on-year. The performance of the dominant skin care products continued to be strong.
3) in terms of platforms, the proportion of self built platforms and third-party platforms in the total revenue of online channels in 21 years was 11.24% and 71.10% respectively, and the revenue was + 29.46% and + 56.22% year-on-year respectively. Among them, the registered users of the company’s self built platform are about 2.9835 million, with an increase of 853200 in 21 years; The customer unit price of self built platform is 111250 yuan. Among the third-party platforms, Alibaba (a third-party platform whose business model covers self operation, distribution and consignment) accounted for 45.36% of the company’s total revenue in 21 years (down 2.30pct compared with 20 years), with a year-on-year increase of 45.56%.
The gross profit margin and expense rate decreased slightly, the inventory and accounts receivable increased, and the cash flow increased significantly
Gross profit margin: the gross profit margin in 21 years was 76.01%, with a year-on-year decrease of 0.25pct. Among them, the gross profit margin of skin care products accounting for the largest proportion was 75.37%, a year-on-year decrease of 0.75pct. According to Wuxi Online Offline Communication Information Technology Co.Ltd(300959) channels, the gross profit margin of online and offline channel products in 21 years was 74.37% and 83.96% respectively, with a year-on-year increase of -0.82pct / + 1.56pct respectively. Quarterly, the gross profit margin of 21q1 ~ Q4 was 78.14%, 76.65%, 76.33% and 75.01% respectively, with a year-on-year ratio of -0.10pct, -7.21pct, + 9.64pct and -0.57pct respectively. Even in the fourth quarter with the largest promotion of e-commerce, the gross profit margin of the company was relatively stable year-on-year and month on month.
Expense rate: the expense rate of the company during the 21 years was 50.45%, with a year-on-year decrease of 0.31pct; Among them, the rates of sales, management, R & D and financial expenses were 41.79% (year-on-year -0.21pct), 6.10% (-0.29pct), 2.81% (+ 0.41pct) and -0.25% (-0.22pct) respectively. The decrease of financial expense rate was mainly due to the increase of interest income year-on-year. In terms of quarters, the expense rates of 21q1 ~ Q4 in a single quarter were -0.98pct, -11.02pct, + 7.26pct and + 2.61pct respectively year-on-year. Among them, the expense rate of the company increased greatly in the second half of 21 years. 21q3 was mainly the sales expense rate of + 8.44pct year-on-year, and 21q4 was mainly the sales, management and R & D of + 0.62pct, + 1.04pct and + 1.03pct respectively.
Other financial indicators: 1) inventories increased by 82.57% to 463 million yuan at the end of the year compared with the beginning of the year. The number of inventory turnover days in 21 years was 134 days, with a year-on-year increase of 4 days. The increase in inventory balance was mainly due to the company’s advance planning, production and stock purchase for the best-selling products of more than 22q1 promotion activities.
2) accounts receivable increased by 32.44% to 247 million yuan at the end of the year compared with the beginning of the year. The turnover days of accounts receivable in 21 years were 19 days, with a year-on-year decrease of 1 day.
3) the net cash flow from operating activities in 21 years was 1.153 billion yuan, with a year-on-year increase of 167.44%. The significant increase in net cash flow from operating activities was mainly due to the rapid growth of product sales revenue.
Consolidate the leading position of sensitive skin care, and expand other efficacy categories such as whitening and anti-aging
In 2021, the company adhered to the strategy of “focusing on main brands and expanding sub brands”. The main brand Winona continued to stabilize the market position of the skin care industry. In terms of products, the two super explosive products including “cream cream + sunscreen” were consolidated. Besides the special cream products, sunscreen, Shu Min essence, freeze-dried mask and other products all performed well. In addition, Winona joined the Tmall small black box to release the first sensitive muscle exclusive anti aging new product “double repair live essence” series of products, continue to enrich the “sensitive muscle +” field, expand the category layout more efficacy, and build multiple efficacy skin care matrix. Winona baby started online layout in 21 years and achieved good performance. From the performance of double 11 in 21 years, Winona ranked top 6 in beauty and skin care on tmall platform, Winona baby flagship store ranked top 20 stores in the year, and ranked top 10 in baby and child skin care; Winona ranks seventh in the double 11 beauty brands on jd.com platform; Ranked top 6 in double 11 beauty at vipshop. In the past 21 years, the company has successfully developed and listed more than 40 new products.
Tiktok has been promoting diversified layout in the channel, and the company has been developing online sales of cosmetics on the basis of Tmall, Jingdong and vip.com. Meanwhile, the company has continuously increased resources input to the new e-commerce marketing platform represented by the master platform, and expanded the brand user groups through short video, grass planting, shop self broadcasting and cooperation among people. In terms of offline channels, the company has 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; In addition, the company opened a new direct store in 2021 with an income of 1.63 million yuan. In 22 years, the company plans to open 80 ~ 100 offline experience stores and Business District stores.
In 22 years, the company will continue to focus on the main brand Winona, consolidate the leading position of “Shumin” series, actively expand other efficacy categories such as whitening, sunscreen and anti-aging, and improve the channel strategy of ” Wuxi Online Offline Communication Information Technology Co.Ltd(300959) combination”; Continue to cultivate Winona baby, beauty answers and other self owned small brands. At the same time, in 22 years, the company plans to launch anti-aging brand aoxmed, which is positioned at the high end and will be promoted in the offline radiation online mode relying on the company’s R & D and resource advantages. In the long run, the company will focus on skin health ecology, promote the layout in the three fields of efficacy skin care, artificial intelligence skin diagnosis and treatment and medical beauty, and realize brand extension through internal incubation, M & A and in vitro fund incubation.
Profit forecast and investment suggestions: we believe that the company’s leading position in subdivided sensitive skin care track is stable, continues to strengthen product strength and Wuxi Online Offline Communication Information Technology Co.Ltd(300959) multi-channel coordinated development, and has made great efforts to increase brand investment and increase its voice significantly in the past 21 years. Considering that the company’s performance in 21 years is better than expected, we raised the profit forecast for 22-23 years and the corresponding EPS for 22-23 years to 2.81 and 3.71 yuan respectively (compared with the previous profit forecast of + 10% and + 8% respectively), increased the profit forecast for 24 years and the corresponding EPS for 24 years to 4.80 yuan, and the PE for 22 and 23 years to 60 and 46 times respectively, maintaining the “buy” rating.
Risk tip: the growth rate of online channels slows down, or the industry competition intensifies; The epidemic situation in China affects the end of the supply chain and makes it impossible to achieve sales; The sales platforms are relatively centralized; The cost of getting customers continues to increase; The main brands and product series are relatively concentrated; The expansion of new brands is less than expected.
