\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 223 Lushang Health Industry Development Co.Ltd(600223) )
The company released the annual report of 2021, and the impairment of real estate disturbed the profitability. ① In 2021, the revenue was 12.363 billion yuan / yoy-9.20%, the net profit attributable to the parent was 362 million yuan / yoy-43.34%, and the net profit attributable to the parent was 360 million yuan / yoy-42.36%. The profitability was lower than expected. The core came from the decline of real estate prices and the year-on-year decrease of settlement income. The principle of prudence accrued 196 million asset impairment, which disturbed the profitability; ② In a single quarter, in 2021q4, the revenue was 6.014 billion / yoy-8.60%, the net profit attributable to the parent was -141 million / yoy-162.53%, and the net profit attributable to the parent after deduction was -147 million / yoy-164.43%.
The adjustment of sales structure promoted the significant increase of gross profit margin, and launched a number of R & D achievements during the period. In 2021, the gross profit margin was 25.69% / + 5.36% PCTs, the proportion of revenue from cosmetics business with high gross profit increased to 12.1% / + 7.0 PCTs, and the contribution of revenue from pharmaceutical and raw materials business increased slightly. In terms of expense ratio: (1) the sales expense ratio is 10.14% / + 3.90pcts. With the increase of the proportion of medicine and cosmetics business, the company will improve its brand publicity and product promotion; (2) The management fee rate is 3.07% / + 0.66pcts; (3) The R & D expense rate is 0.96% / + 0.39pcts, the R & D investment of medicine and cosmetics accounts for 4.96% of the income and the proportion of personnel is 13.57%. During the period, the company has achieved a number of R & D achievements, carried out research on traditional Chinese medicine in the fields of orthopedics, ophthalmology and skin, and produced 14 "traditional Chinese medicine +" functional foods; The raw material side has newly developed four kinds of products such as ekdoyne, and listed a number of hyaluronic acid derivative products. In the future, it will continue to promote the development of new products and the promotion of the new brand "Baifu".
Cosmetics: "4 + n" operation, accurate card market segmentation. The multi-point layout in the three fields of skin care, fragrance and make-up creates a collaborative brand cluster with the "4 + n" strategy. In 2021, the revenue will be 1.495 billion / yoy + 117.0%, the gross profit margin will be 63.68% / + 4.54 PCTs, and the operation effect of cosmetics business will be realized gradually. Tiktok facial mask: (1) Dr. Cole: differential positioning of microecological skin care, 21 years of income of 744 million /yoy+272%, based on Frieda's strong scientific research capabilities, create clean honey, banana mask, probiotic water emulsion, leading essence four major explosive products, 21 years sales accounted for about 70%, the channel end line + line under the full coverage, line to single brand store + Business District store new retail system layout nationwide, vibrato channel quickly rise, Q1 performance is good. In the future, we will work hard in the field of micro ecological skin care with the help of channels. (2) Yi Lian: 21 /yoy+73.1% 646 million yuan, "lotus spray" total sales breakthrough 15 million bottles, toner water ranked first in the whole network, will expand the fullerene compound products in the future, and gradually improve the product matrix. (3) Sub brand: Shanyan focuses on precision skin care and accelerates the marketing mode of Wuxi Online Offline Communication Information Technology Co.Ltd(300959) integration through the expansion of offline brand stores; EPAR Khan focuses on the field of fragrance; In the future, with the four major brands as the core, relying on the core advantages of "homology of makeup drugs and skin beautification through science and technology", and with R & D as the empowerment, we will create many sub brands, such as quanrun (weak sensitive skin repair), UMT (skin nourishing base makeup), beirun (anti-aging and skin beautification).
Investment suggestion: the company transformed into a large health field, with a high boom hyaluronic acid track, and continued to cash in its business supported by the "4 + n" cosmetics matrix. Considering the intensified competition in raw material business and the fluctuation of real estate business, the company adjusted its net profit for 22-24 years to 656 million / 818 million / 976 million, maintaining the "buy" rating.
Risk tips: there is a risk of declining prosperity in the cosmetics industry, increased competition in the cosmetics industry, the promotion of new products is less than expected, and the real estate policy is tightened.
