\u3000\u30 Beijing Zznode Technologies Co.Ltd(003007) 92 Hangzhou Onechance Tech Corp(300792) )
In 2021, the net profit increased slightly, and the focus shifted to brand online management services to maintain the “buy” rating
The company issued the annual report of 2021 and the first quarter report of 2022. In 2021, the company achieved an operating revenue of 1.135 billion yuan, a year-on-year decrease of 12.59%; The net profit attributable to the parent company was 327 million yuan, a year-on-year increase of 5.39%; The year-on-year decrease in revenue was mainly due to the change of the project cooperation mode between the company and Baique from brand online marketing service to management service, and the change of revenue recognition rules. In 2022q1, the company achieved an operating revenue of 266 million yuan, with a year-on-year increase of 19.58%, mainly due to the rapid development of business after the running in period of newly signed brands in 2021q3 and the signing of 11 new brands in 2022q1; The investment in R & D and logistics of the parent company decreased by 5.2 billion yuan year-on-year, which had a great impact on the net profit of R & D and logistics of the parent company. Based on the company’s performance, we lowered the profit forecast for 20222023 and added a new profit forecast for 2024. It is estimated that the net profit attributable to the parent company in 20222024 will be 389 (- 0.77) / 455 (- 1.05) / 526 million yuan respectively, the corresponding EPS will be 1.63/1.91/2.21 yuan respectively, and the corresponding PE of the current stock price will be 16.9/14.5/12.5 times respectively. We are optimistic about the continuous strengthening of the company’s global service ability and maintaining the “buy” rating.
Brand online management service has become the core business, focusing on asset light operation, and the net interest rate has increased significantly
Since 2020q4, the company has changed the project cooperation mode with Baique and made a strategic transformation to the development of brand online management services. In 2021, brand online management services contributed revenue of 605 million yuan (year-on-year + 16.06%), accounting for 52.92% of the company’s operating revenue (year-on-year + 12.78 PCTs), which has become the company’s largest business. After adjusting the focus of the business model, the company’s sales expenses decreased by 40.81% year-on-year to 86 million yuan in 2021, which also led to a significant increase in the net interest rate to 31.69% (year-on-year + 5.09pcts).
The goal of building a global e-commerce service provider has been completed, and all-round expansion of new platforms and categories has been realized
In 2021, the company will realize the construction of a global e-commerce service provider, and its service capacity has been expanded to live e-commerce platforms such as Tiktok and new categories such as tide games. The company has a good retention rate of stock business. At the same time, it has established a BD team to actively expand new categories, new brands and new channels, and add well-known brand customers such as red bull and Yili. In 2021, the Gmv of the company’s service brand was 27.1 billion yuan (year-on-year + 35.5%), and 2022q1 was 4.8 billion yuan (year-on-year + 12.78%). Q1 of e-commerce still maintained stable growth in the off-season, which is expected to form a comparative advantage against the background of intensified competition on e-commerce platforms.
Risk tip: there are risks such as intensified competition in the agent operation industry and the company’s online operation right being taken back by the brand party.
