\u3000\u3 China Vanke Co.Ltd(000002) 803 Xiamen Jihong Technology Co.Ltd(002803) )
Event overview
On the evening of April 25, 2022, Xiamen Jihong Technology Co.Ltd(002803) released its annual report. In 2021, the company achieved a revenue of RMB 5.178 billion, a year-on-year increase of 17.40%, and a net profit attributable to the parent company of RMB 227 million, a year-on-year decrease of 59.32%.
The gross profit margin of cross-border e-commerce decreased and the rate of R & D expenses increased
The overall gross profit margin of the company was 38.39%, a year-on-year decrease of 4.73 PCT; By business, the gross profit margin of to C — Internet marketing e-commerce business was 57.70%, down 2.09pct year-on-year, the gross profit margin of environmental protection food packaging business was 24.05%, up 4.31pct year-on-year, and the gross profit margin of color packaging business was 11.94%, down 4.68pct year-on-year. In terms of expense rate, the sales expense rate was 28.02%, 3.96 PCT year-on-year, the management expense rate was 2.55%, down 0.07 PCT year-on-year, and the R & D expense rate was 2.43%, up 0.61 PCT year-on-year. There was no significant change in the main business during the reporting period, mainly to C-end – precision marketing cross-border e-commerce business and packaging service business providing full case marketing design for key customers.
Cross border e-commerce has deepened its intensive operation and cooperated with Huawei to accelerate the digital transformation
The company’s cross-border e-commerce business has been refined. According to the changes of economic environment and market conditions, the company has timely adjusted marketing strategies, continuously optimized supply chain resources, multi platform launch and multi-mode operation, and actively expanded the sales market. The order scale has increased by more than 40% over the same period of last year, realized an operating revenue of 2.83 billion yuan, a year-on-year increase of 11%, and realized a net profit attributable to the parent company of 172 million yuan, a year-on-year decrease of 53%, The inventory amount of cross-border e-commerce business is about 90 million yuan, and the inventory sales ratio is controlled at about 3%. The profit of cross-border e-commerce business decreased significantly year-on-year, mainly because (1) the epidemic affected the timeliness of transportation and logistics, and then affected the signing of goods;
(2) the industry competition intensifies, and the low price strategy and bid volume reduce the overall profit space; (3) Further cautious accounting. The company continues to invest in e-commerce SaaS business. The company continues to explore diversified innovative technologies such as cloud computing, AI, big data and multimedia technology, further accelerate the company’s digital transformation and realize more comprehensive and in-depth data-driven and digital innovation.
NFT technology enables Baijiu marketing, and qincosmos platform makes efforts to develop digital collections.
In 2021, the company started the retail business of Chinese Baijiu, applied blockchain and NFT technology to the marketing field of Baijiu, and launched limited edition digital sauce liquor. According to the information easily disclosed by the company, at present, the company’s digital collection platform Qin universe has more than 250000 registered users. The company sold out through the launch of the standard sample of Chinese sauce wine of the Silk Road and the digital sauce wine (Digital Collection + physical sauce wine) of the small wine series of the mobile Three Kingdoms sold by Qin cosmic. “Digital Collection + physical object” has unique identity identification and collection value in the new era. Digital identification on the chain ensures consumers’ ownership of goods. Under the general trend of vigorously promoting “cultural confidence” and “digitization of cultural industry”, the distribution and circulation of digital collections are of positive significance for the export and dissemination of high-quality culture. We believe that China’s digital collection market is highly prosperous at present.
Investment advice: maintain the “buy” rating
Combined with the annual report of the company, we adjusted the forecast of the company’s revenue of 5.989/70.32 / (unpredicted) billion yuan in 20222024 to 5.718/64.60/73.11 billion yuan, the forecast of net profit attributable to the parent company of 336 / 478 / (unpredicted) million yuan in 20222024 to 2.52/3.04/349 million yuan, and the forecast of EPS of 1.23/1.48 / (unpredicted) yuan to 0.67/0.80/0.92 yuan, corresponding to the closing price of 10.03 yuan / share on April 26, 2022, PE was 15, 12 and 11 times respectively. In 2021, affected by the macroeconomic environment, the company’s performance was lower than expected, but it did not affect our optimism about the long-term value of the company. At present, the valuation level of the company’s stock price is low and maintains the “buy” rating.
Risk tips
New business development is less than expected risk, the epidemic affects macroeconomic risk, and the price fluctuation risk of raw materials.
