\u3000\u3 Shengda Resources Co.Ltd(000603) 214 Shanghai Aiyingshi Co.Ltd(603214) )
Event: in 2021, the revenue achieved rapid growth and the net profit attributable to the parent decreased
The company issued an annual report: in 2021, it achieved a revenue of 2.652 billion yuan (+ 17.6%), and a net profit attributable to the parent company of 73 million yuan (- 37.0%); In 2021q4, the single quarter revenue was 999 million yuan (+ 54.5%), and the net profit attributable to the parent company was 40 million yuan (- 24.1%). We believe that the company has deeply benefited from the three child policy dividend. Focusing on the multi-dimensional layout of "brand + Omni channel", the company has acquired Beibei bear, promoted regional expansion and built strong competitiveness. We maintain the previous profit forecast unchanged and add the profit forecast for 2024. It is estimated that the net profit attributable to the parent company from 2022 to 2024 will be RMB 115 / 145 / 175 million, corresponding to EPS of RMB 0.81/1.02/1.23, and the current share price corresponding to PE of 23.1 / 18.3/15.2 times, maintaining the "buy" rating.
E-commerce achieved high growth, and the gross profit margin fell slightly affected by promotion and online new business expansion
The company's overall operation was stable in 2021. In terms of channels, store sales and e-commerce achieved revenue of 2.079 billion yuan (+ 5.9%) and 338 million yuan (+ 189.9%) respectively, of which e-commerce business continued to grow rapidly. In terms of products, the revenue of milk powder / cotton textile / food / supplies increased by 25.79% / 15.01% / 11.48% / 0.41% respectively year-on-year, of which the growth of milk powder category was faster. In terms of profitability, the company's comprehensive gross profit margin was 30.26% (- 1.3pct) in 2021, of which the gross profit margin of milk powder decreased rapidly (- 5.6pct), which is expected to be mainly related to the increase of promotion and the expansion of e-commerce agent operation business with relatively low gross profit margin in the fourth quarter; Except for milk powder, the gross profit margin of other categories has increased. In terms of expenses, the company's sales / management / financial expense ratio in 2021 was 22.33% / 3.61% / 1.63% respectively, with a year-on-year increase of + 0.94pct / - 0.28pct / + 1.44pct respectively. Among them, the financial expenses increased rapidly under the influence of the new leasing standards.
The acquisition of Beibei bear has achieved in-depth expansion of channels, cut into the maternal and infant service market, and continuously improved its comprehensive competitiveness
The company's multi-dimensional expansion layout around "brand + Omni channel": (1) continuously optimize commodity structure and supply chain, and establish brand voice; (2) Channel expansion: successfully acquired beibeixiong offline, entered Hunan, Hubei, Sichuan and other provinces, and steadily promoted national expansion. In the whole year, 44 / 6 Shanghai Aiyingshi Co.Ltd(603214) / beibeibeixiong stores were opened, and the total number of stores jumped to 526 at the end of the period; Extensive online layout of various e-commerce platforms, o2o real-time retail and private community operations, and deepen cooperation with upstream brands; (3) Actively respond to the call of the state, cut into mother and child services such as childcare and early education, and horizontally expand business formats. The company has been deeply engaged in mother and child retail for many years, continuously optimizing the membership system, building a global consumer operation system, enriching its own brand matrix, and improving Shanghai Aiyingshi Co.Ltd(603214) brand strength and comprehensive competitiveness in a multi pronged manner.
Risk tip: repeated epidemic, intensified competition, acquisition and integration effect is less than expected, etc.
