\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 223 Lushang Health Industry Development Co.Ltd(600223) )
Event: the company announced its performance in 2021. In 2021, the company’s operating revenue was 12.363 billion yuan, a year-on-year increase of – 9.20%, and the net profit attributable to the owner of the parent company was 362 million yuan, a year-on-year increase of – 43.34%, of which the net profit attributable to the parent company in 2021q4 was – 141 million yuan, a year-on-year increase of – 162.53%.
The impairment of real estate dragged down profits, and the growth rate of cosmetics exceeded expectations: 1) real estate sector: the market was depressed, the real estate sales price fell, and the annual contract sales reached 14.645 billion yuan, a year-on-year increase of – 16.78%. For prudence, the company conducted a comprehensive asset impairment test for more than 30 real estate projects at the end of the year, and made an impairment provision of 187 million yuan, which was the main reason for the decline in profits. 2) Biopharmaceutical sector: cosmetics, medicine, raw materials and additives business continue to make efforts, and the proportion of revenue and profit continues to increase. Freida Pharmaceutical Group achieved a revenue of 2.181 billion yuan, accounting for 17.64% of the total revenue, up + 8.03pct from the previous year; The total profit was 223 million yuan, accounting for 34.64% of the company’s total profit, up + 1972pct from the previous year. Among them, the cosmetics business achieved a revenue of 1.495 billion yuan, a year-on-year increase of + 117.01%. Yi Lian has a revenue of 646 million yuan, +73.08%, and “Lotus” spray as a strategic single product, with a total sales volume exceeding 15 million bottles. Dr. er’s revenue is 744 million yuan, +272.14%, the company’s ability to create explosive products outstanding, water milk, facial mask, cleansing honey and other single products over 100 million yuan. The revenue of pharmaceutical business was 541 million yuan, + 8.71%. The revenue of raw materials and additives business was 241 million yuan, + 21.96%. Focus Freida is one of the world’s leading production bases of hyaluronic acid raw materials, with a production capacity of 420 tons / year. At present, it produces food grade and cosmetic grade hyaluronic acid, about 60% of which is exported. There are sodium hyaluronate food products such as hyaluronic acid and Tianzi Yuzhuo, which are quickly sold on tmall, jd.com and other platforms.
In the stage of industrial transformation, the cost investment is increased. In 2021, the sales / management / Finance / R & D rates were 10.1% / 3.1% / 1.0% /. 7% respectively, with a year-on-year increase of 47.7% / 15.7% / 53.9% / 34.2% respectively. Among them, the increase of sales expenses is mainly due to the increase of pharmaceutical and cosmetic brand publicity and product promotion expenses; The increase of management expenses is caused by the increase of impact expenses such as strengthening information construction of the company; The increase of financial expenses is relatively large, mainly due to the planning adjustment, suspension and interest expense; The increase in R & D expenses is mainly used to promote the R & D of new pharmaceutical products and the R & D center of yipahan Industrial Park.
Investment suggestion: the company will deepen the strategy of promoting the large-scale health industry, driven by the two wheels of biomedicine and ecological health. The cosmetics sector has developed rapidly and become a new performance growth point of the company. The main brand has broken the circle and developed vigorously, and the new brand has accumulated strength; The new production capacity of sodium hyaluronate in raw material business continues to be released. It is expected that with the increase of the proportion of high gross profit business, the profitability of the company is expected to be significantly enhanced. The net profits in 22-24 years are RMB 4.4/6.0/990 million respectively, corresponding to 25 / 18 / 11 times of PE. Maintain the “overweight” rating.
Risk warning: asset impairment; New product sales are less than expected; Industry competition intensifies; Macroeconomic downturn.
