\u3000\u3 Shengda Resources Co.Ltd(000603) 214 Shanghai Aiyingshi Co.Ltd(603214) )
Shanghai Aiyingshi Co.Ltd(603214) released the annual report of 2021. The annual revenue of 2021 was 2.652 billion yuan / + 17.55%, and the net profit attributable to the parent was 73 million yuan / – 36.97%, of which Q4 achieved 999 million yuan / + 54.49% and 40 million yuan / – 24.08% in a single quarter.
Quarter by quarter, the company’s 2021q1 / Q2 / Q3 / Q4 revenue was 543 million yuan / 599 million yuan / 512 / 999 million yuan, with a year-on-year change of + 4.64% / + 3.76% / – 0.41% / + 54.49%. In the fourth quarter, Beibei bear’s consolidated statement and online business expansion led to a significant increase in revenue. In terms of splitting throughout the year:
① in terms of business division, store sales (including o2o) are 2.079 billion yuan / + 5.87%, mainly driven by the growth of Beibei bear; E-commerce was 337 million yuan / + 189.88%, and the income scale of other wholesale, touch and other services, early education and other businesses also increased.
② by category, the annual income of milk powder was 1.407 billion yuan / + 25.79%, that of consumer goods was 495 million yuan / + 0.41%, that of cotton textile was 248 million yuan / + 15.01%, that of food was 198 million yuan / + 11.48%, that of toys was 78 million yuan / – 2.31%, and that of baby touch service was 17 million yuan / + 65.61%. The revenue growth of the company’s milk powder category is significantly stronger than that of other categories, mainly due to the operation of Wyeth and other milk powder brands on the line, and the offline sales structure is relatively stable.
The gross profit margin was affected by the decline of gross profit margin of stores and income structure, and 21q4 declined. The company’s annual gross profit margin was 30.26%, a year-on-year decrease of 1.27 percentage points; The gross profit margin of 2021q1 / Q2 / Q3 / Q4 is 28.94% / 33.22% / 29.47% / 29.60%, with a year-on-year change of + 1.31pcts / + 0.81pcts / – 2.27pcts / – 4.0pcts. In the whole year, the gross profit margin of store sales decreased by 1% year-on-year. The increase in the proportion of online business promoted the decline of the whole gross profit margin. In the fourth quarter, the proportion of online sales increased and the gross profit decreased even more.
During this period, the expense rate increased year-on-year due to the decline of same store sales, accounting standards and subsidies. The annual sales / management / financial expense ratio of the company is 22.33% / 3.61% / 1.63% respectively.
The net profit attributable to the parent company in 2021 is 73 million yuan / – 36.97%, of which the net profit attributable to the parent company in 2021q4 is 40 million yuan / – 24.08%. Profits declined in the quarter, mainly due to the combined effect of multiple factors such as same store sales, gross profit margin, income structure, reduction of subsidies, accounting standards and so on under the background of declining fertility and the impact of the epidemic. Investment suggestion: the merger and acquisition of Beibei bear and the expansion of online business are progressing smoothly, and then continue to integrate Beibei bear and expand online business with the advantage of supply chain, which is expected to drive the company’s profits out of the downward channel; In addition, the main business recovered from January to February 2022 and fluctuated due to the impact of the epidemic, but we believe that the follow-up will be repaired or return to the uplink with the epidemic; In the long run, diversified consumption, product segmentation and category expansion drive the continuous increase of per capita expenditure, and the social attention to fertility may potentially benefit the long-term and healthy development of the industry. Due to the company’s new development strategy and the impact of the epidemic, we slightly reduced the net profit in 202224 to RMB 90 / 100 / 110 million (previous value: RMB 92 / 119 million in 20222023). It is recommended to pay continuous attention.
Risk tips: changes in consumption habits; Macroeconomic downturn; The risk that the lease contract cannot be renewed upon expiration; Risk of repeated covid-19 outbreaks
