\u3000\u3000 Syoung Group Co.Ltd(300740) (300740)
Event:
The company issued the performance forecast for 2021.
Comments:
High performance growth and continuous improvement of profitability
In 2021, the company expects to realize net profit attributable to the parent company of 230-265 million, with a year-on-year increase of 64% – 89%. The median is about 248 million (+ 76%), of which the impact of equity incentive expenses is about 26 million. The net profit attributable to the parent company in 21 years after restoration is 256-291 million, with a year-on-year increase of 83% – 107%; The impact of non recurring profit and loss is about 15 million yuan, which has little impact on net profit. The net profit attributable to the parent company in Q4 alone was 83.34 million-118 million, with a year-on-year increase of 23% – 76%, maintaining a rapid growth. The company has achieved rapid development in various businesses, rapid growth in revenue, improved product structure, improved gross profit level and improved overall profitability.
Yunifang, the main brand, continued to promote brand upgrading, and the agency business expanded well
Tiktok’s brand and product category continued to develop. The main brand of the company is upgrading its brand, product structure and channel structure, and the proportion of water and milk and high frost is increased. The proportion of sales of Kwai Chung and other fast track companies has been improved, and Wuxi Online Offline Communication Information Technology Co.Ltd(300959) channels have been fully covered. According to flying melon data, the annual turnover of the brand of the 2021 tiktok’s brand was over 220 million yuan. In addition, the company has cutting-edge brands such as xiaoconfused, Royal men, dashuidi, huayaohua and HPH. According to the business consultant, the turnover of xiaoconfused brand in 2021 exceeded 150 million yuan. In terms of agency business, the company fully undertakes the agency of Johnson & Johnson, and cooperates with more than 50 international brands such as yifeidan, Kiko, French high-end efficacy skin care brand LIERAC, Finnish natural skin care brand LUMENE, men’s care brand Hawkins & brimble and color makeup brand natashadena. At present, the profit of Johnson & Johnson’s business has entered a steady state, with a net interest rate of 3-5%, The profit model of other new brands continued to improve. During the double eleven period, Tmall stores slobber shop GMV exceeded 400 million on the first day, Listerine sold 400 thousand bottles of mouthwash, KIKO powder over 260 thousand, city wild doctors 377 super 250 thousand, evidens cream sales over 27 thousand bottles, and Finland’s natural skin care brand Lumene increased significantly, and agency business was better.
Investment advice and profit forecast
The company actively strengthens the multi brand omni-channel operation ability, and the self owned brand + agent brand business is driven by two wheels. The product structure of the main brand yunifang has been continuously optimized, the cutting-edge brands have grown rapidly, taowai is shaking fast and the offline channels have developed steadily. At the same time, the profit margin of Johnson & Johnson’s agency business has entered a steady state, the profit models of other agency brands have been gradually optimized, and the overall orientation is basically good. It is estimated that from 2021 to 2023, the company will realize a net profit attributable to the parent company of 240 / 369 / 595 million, EPS of 0.58/0.90/1.45 yuan and pe28 / 18 / 11x respectively, maintaining the “buy” rating.
Risk tips
Brand market competition intensifies, new brand incubation does not meet expectations, and the profit rhythm does not meet expectations
