\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 223 Lushang Health Industry Development Co.Ltd(600223) )
Main points:
Events
The company released its annual report for 2021, realizing an operating revenue of 12.363 billion yuan (- 9.20%); The net profit attributable to the parent company was 362 million yuan (- 43.34%); The net profit deducted from non parent company was 360 million yuan (- 42.36%), and the basic earnings per share was 0.36 yuan / share.
With the high growth of cosmetics revenue, Yilian and Dr. yu’er have successfully created explosive products
The sales of cosmetics business increased significantly. In 2021, the cosmetics business realized an operating revenue of 1.495 billion yuan (+ 117.01%), accounting for 12% of the total revenue. Among them, the performance of Yilian and Dr. Li’er brands increased rapidly. (1) Yi Lian achieved a business income of 646 million yuan (+73.08%) for the whole year. The large single product of hyaluronic acid water spray was ranked first in all kinds of toner water, and the sales volume exceeded 15 million bottles. Online channel accounted for 96%, forming a Tmall, Jingdong tiktok channel double line parallel sales mode, November 2021 layout of the shaking platform. (2) Dr. yu’er achieved an annual operating revenue of 744 million yuan (+ 272.14%). We successfully built four major products: Jen Yan, banana facial mask, probiotics, water and milk essence, and the sales volume of the four largest single products reached 70%. In 2021, the tiktok reached 98%, with Tmall flagship store as the main force, and the volume of shaking was fast. At the same time, the offline layout is carried out. By the end of 2021, the franchisees of Dr. yu’er skin and beauty Research Institute have covered more than 40 cities in China.
Launch a new brand of high-end raw materials “Baifu” and layout the terminal food track
The operating revenue of the company’s raw materials and additives sector was 241 million yuan (+ 21.96%), and the sales volume was 718.35 tons (+ 41.56%). Focus Freida has a production capacity of 420 tons of hyaluronic acid raw materials. In order to improve the competitiveness of the company’s raw materials, the company continues to adjust the product structure and launch new products. The company has launched a new brand of raw material business “Baifu”, and simultaneously launched three new raw material products: Baifu cosmetic grade hyaluronic acid, Baifu huanhuo small molecule and Baifu ergotathione. The company has newly developed four kinds of raw material products such as econdolin, γ- The raw material of aminobutyric acid is put into production. In addition, the company laid out the food track and further widened the ceiling of raw materials. In January 2021, the first sodium hyaluronate drink “Tianzi Yuzhuo” was launched, and then around the concept of “hyaluronic acid +”, a series of sodium hyaluronate and its derivatives were developed to continuously expand the product matrix.
Real estate projects shrink and transform, and property management companies urgently need to be spun off and listed
Under the background of the continuous accumulation of downward pressure in the real estate cycle, the company relies on the major shareholder Shandong commercial group to make a strategic transformation from a developer to a life service provider. 1) The scale of health real estate has been reduced. During the reporting period, the company realized a carry forward revenue of 9.28 billion yuan (- 19.5%), the average carry forward price of 7313 yuan / m2 (- 22.6%), and the area to be carried forward at the end of the reporting period was 2.2 million square meters. The sharp decline in the average carry forward price of the company is mainly dragged down by the projects in Heze, Tai’an, Weifang and Harbin outside the province. Sales side: in 2021, the sales will reach 14.65 billion yuan (-16.8%), and the average sales price will be 10681 yuan / square meter (+1.7%). Land side: by the end of 2021, 746000 square meters (- 32.3%) of land to be developed and the planned capacity area is 1.772 million square meters (- 28.1%), of which Harbin outside the province accounts for 19.3% (+ 5.4pct). New construction and completion: the company started 1.378 million square meters (- 26.8%) and completed an area of 1.147 million square meters (- 1.7%). 2) The operation of health industry has been steadily improved. In April 2021, the company issued an announcement to spin off its property management company to be listed in Hong Kong, named Lushang life service (Stock Code: h01641. HK). The scale of property management companies worked together with the internal and external expansion of income. By the end of 2021, the area under management had reached 22.87 million square meters (about + 27%). At the same time, the company actively expanded asset light business, and successfully expanded Laiwu Lushang Plaza project, Jinmao International Plaza project and other business management projects during the reporting period.
Brand promotion is strengthened and profitability is weakened
The overall gross profit margin of the company is 25.69% (+ 5.36pct), including 17.22% (+ 2.25pct) for real estate business, 63.68% (+ 4.54pct) for cosmetics, 57.86% (- 3.79pct) for biomedicine and 37.14% (- 9.54pct) for raw materials and additives. The gross profit margin of raw materials and additives decreased significantly, mainly because the company reduced the price of raw materials in order to expand the market share and increase the product delivery force in foreign markets. The company’s net profit margin on sales is 3.19% (- 1.5pct), and its profitability is weakened. Kwai tiktok is mainly because the company’s cosmetics brand has increased its brand building efforts, and the online deep plowing live track has reached a deep cooperation with many platforms such as jitter, fast hand and so on, and the sales cost rate has increased by 3.90pct to 10.14%.
Investment advice
The company is positioned as a leading comprehensive operator of large health industry in China and implements a two wheel drive strategy in the two sectors of ecological health industry and biomedicine. The real estate development business is mainly stable, and the proportion of non real estate business has increased, especially the cosmetics business. Dr. yu’er and Yilian, who mainly focus on micro ecological skin care, have gradually broken the circle and increased their volume. After the introduction of Freida biology into war investment, the participation of Hangzhou Onechance Tech Corp(300792) and other line operators is expected to empower the company’s brand marketing end and speed up the brand incubation of the company’s cosmetics business. We expect that the company’s EPS from 2022 to 2024 will be 0.45, 0.58 and 0.75 yuan / share respectively, corresponding to 23, 18 and 14 times of the current share price PE respectively. Maintain the “buy” rating.
Risk tips
The promotion of new products is less than expected; Industry competition intensifies; Repeated outbreaks, etc.
