\u3000\u3 China Vanke Co.Ltd(000002) 242 Joyoung Co.Ltd(002242) )
Event: Joyoung Co.Ltd(002242) released the 2021 annual report. The company achieved a revenue of 10.54 billion yuan in 2021, a decrease of 6.09% at the same time; The net profit attributable to the parent company was 746 million yuan, a decrease of 20.69%. Among them, the single quarter revenue of 2021q4 was 3.509 billion yuan, a decrease of 15.27%; The net profit attributable to the parent company was 82 million yuan, a decrease of 72.16%.
The product structure was optimized, and export sales achieved high growth. By category, the company’s product structure has been continuously optimized, and the series of cooking utensils and nutritional cookers have achieved good growth, with a year-on-year increase of 68.7% / 11.87%, and the proportion in the total revenue has further increased to 7.13% / 36.35%, which is mainly due to the company’s continuous promotion of new products and the focus on the pain points of consumers; In terms of sub regions, the company’s domestic / export revenue in 21 years increased from – 11.73% / + 56.09% to 9.1 billion yuan / 1.5 billion yuan year-on-year, of which the proportion of export sales further increased from 8.32% to 13.83%, mainly due to Ninja’s better overseas performance. Amazon in the United States shows that many products of Ninja have been marked with “Amazon’s choice”. At the same time, the company released the export forecast of related party transactions in 2022, which is expected to achieve an export of 211 million US dollars (about 1.35 billion yuan), an increase of 13.63% over the actual export volume in 2021.
The gross profit margin of export sales has increased rapidly, and the good cost control has led to the steady net profit of the company. Gross profit side: the gross profit margin of the company decreased by 4.27pct year-on-year in 21 years. The gross profit margin of domestic and export sales of the company increased from -3.96pct / + 4.33pct to 30.28% / 12.28% year-on-year respectively. Among them, due to the rising cost of raw materials and the relative lag of price adjustment, the gross profit margin of domestic sales is under pressure in the short term, while export sales benefit from signing orders at the beginning of the year and locking the price in advance. At the same time, the low gross profit base of early orders also makes the gross profit of export sales perform better year-on-year in 21 years. Rate side: in 21 years, the company’s sales expense rate and management expense rate decreased by 1.65pct/0.22pct year-on-year respectively, and the R & D expense rate increased by 0.3pct year-on-year. In order to better cope with market competition, the company added 2068 patents in 21 years. Net profit side: Overall, the company’s net profit margin in the past 21 years decreased by 1.31pct to 7.07% year-on-year.
Issue the first phase of employee stock ownership plan (Draft) and improve the benefit sharing mechanism. The company plans to launch the first phase of the employee stock ownership plan, and plans to buy back no more than 12 million shares, accounting for about 1.56% of the current total share capital. The total number of holders of this share holding plan is expected to be no more than 30, mainly including the company’s senior management and core management. The proposed upper limit of fund-raising amount is 350 million yuan. The performance evaluation takes the five years from 2022 to 2026 as the evaluation year, with a duration of 72 months, which is unlocked in five equal proportions, so as to realize the consistency of the interests of the company with shareholders and employees.
Profit forecast and investment suggestions. We expect the company to realize a net profit attributable to the parent company of RMB 824 / 961 / 1076 million from 2022 to 2024, with a year-on-year increase of 10.5% / 16.7% / 12.0%, maintaining the “buy” rating.
Risk tip: the expansion of new products fails to meet expectations, and the prices of raw materials, exchange rate and sea freight continue to rise.
