\u3000\u30 Fawer Automotive Parts Limited Company(000030) 06 Chongqing Baiya Sanitary Products Co.Ltd(003006) )
Event: Chongqing Baiya Sanitary Products Co.Ltd(003006) released the 2021 annual report. In 2021, the company achieved a revenue of 1.463 billion yuan, a year-on-year increase of 17.0%; The net profit attributable to the parent company was 228 million yuan, a year-on-year increase of 24.9%; The non net profit deducted was 211 million yuan, a year-on-year increase of 16.8%. In a single quarter, 21q4 achieved a revenue of 379 million yuan, a year-on-year increase of 10.2%; The net profit attributable to the parent company was 55 million yuan, a year-on-year increase of 4.0%; The non net profit deducted was 50 million yuan, a year-on-year decrease of 1.1%.
Research and development will consolidate the product foundation, and structural optimization will drive up profits. 1) In a single quarter, the company’s Q1-Q4 revenue in 2021 increased by 34.7% / 16.1% / 7.9% / 10.2% respectively year-on-year; The net profit attributable to the parent company increased by 46.7% / 50.2% / 1.1% / 4.0% year-on-year respectively. 2) In terms of profitability, the company’s gross profit margin in 2021 was 44.71% (+ 2.05pct.), The net interest rate attributable to the parent company is 15.58% (+ 0.99pct.), The gross profit margin of 21q4 in a single quarter was 43.26% (+ 2.34pct.), The net interest rate attributable to the parent company is 14.38% (-0.85pct.). 3) In terms of period expenses, the rates of sales, management, R & D and financial expenses of the company in 2021 were 19.06%, 5.11%, 3.48% and – 0.19%, respectively + 1.32, + 0.32, + 1.10 and + 0.05pct. The company has continuously increased the R & D and innovation of products, invested 509552 million yuan (+ 70.7%) in R & D expenses throughout the year, and added 29 patents.
Medium and high-end products drive growth, with sales accounting for more than 95%. 1) Sanitary napkins: in 2021, the revenue of the company’s own brand sanitary napkins products was 1.184 billion yuan (+ 25.0%), accounting for 80.96% (+ 5.22pct.), The gross profit margin is 50.65% (+ 0.13pct.), We calculated that the revenue of sanitary napkin products in 21q4 was + 18% year-on-year. In line with the consumption trend of sanitary napkin products, the company has accelerated the promotion of new products and key single products. The sales of medium and high-end free point brand sanitary napkin products have accounted for more than 95% (+ 27.5%), and the product structure has been continuously optimized and adjusted to drive the improvement of the company’s revenue and performance. 2) Diapers: in 2021, the revenue of the company’s own brand diaper products was 148 million yuan (- 3.9%), accounting for 10.14% (- 2.20 PCT.), The gross profit margin is 16.79% (+ 2.24pct.). 3) OEM business: the company’s ODM revenue in 2021 was 130 million yuan (- 12.7%).
Offline channels are intensively cultivated in Sichuan and Chongqing, and the Chinese market is expanded in an orderly manner. In 2021, the company achieved a total revenue of 1.123 billion yuan (+ 18.4%) from its own brand and traditional offline channels, with a gross profit margin of 49.19% (+ 2.09pct.). 1) In terms of distribution channels, the sales revenue of distribution channels in 2021 was 857 million yuan (+ 21.8%), and the gross profit margin was 50.60% (+ 2.56pct.), Ka channel achieved a revenue of 266 million yuan (+ 8.9%) and a gross profit margin of 44.69% (+ 0.17pct.) in 2021. 2) By region, Sichuan and Chongqing, Yunnan, Guizhou and Shaanxi, Lianghu and other regions achieved revenue of RMB 614 million, RMB 336 million and RMB 173 million respectively, with a year-on-year increase of 15.7%, 24.9% and 16.4% respectively, and the corresponding gross profit margin was 50.72% (+ 2.33 PCT.) respectively 52.09%(+1.71pct.)、 38.16%(+1.58pct.)。 According to Nielsen’s data, in 2021, the company’s free point brand ranked first in Chongqing and second in Sichuan and Yunnan, Guizhou and Shaanxi.
Actively explore online channels, encourage goals and show confidence. In 2021, the company’s e-commerce channel revenue was 210 million yuan (+ 36.8%), and the gross profit margin was 34.52% (-0.92pct.). With the company actively developing e-commerce channels, increasing investment in online marketing resources, optimizing online organizations and personnel, entering large e-commerce platforms such as tmall, jd.com and vipshop, and actively participating in emerging channels such as live broadcast, group purchase and o2o, the company’s brand influence has been continuously improved. We believe that e-commerce channels are expected to continue to increase in volume. According to the company’s 2021 equity incentive plan, the revenue target of online business from 2022 to 2024 is based on 2020, with growth rates of no less than 120%, 220% and 350%, corresponding to year-on-year growth rates of 60.8%, 45.5% and 40.6% respectively.
Investment suggestion: the company continues to optimize its product structure, develop in a coordinated manner through multiple channels, and demonstrate its confidence in development through equity incentive. We expect that the company will increase its marketing investment and adjust its profit forecast. It is expected that the company will achieve revenue of RMB 1.82 billion, 2.23 billion and 2.71 billion from 2022 to 2024, an increase of 24.5%, 22.4% and 21.6% at the same time, and the net profit attributable to the parent company will be RMB 270 million, 320 million and 380 million (the previous forecast was RMB 280 million and 340 million from 2022 to 2023), an increase of 19.6%, 18.6% and 17.4% at the same time, and the EPS will be RMB 0.63, 0.75 and 0.88, maintaining the “overweight” rating.
Risk tips: the risk of substantial fluctuations in raw material prices, increased market competition and less than expected channel expansion
