\u3000\u3000 Syoung Group Co.Ltd(300740) (300740)
Event:
The company disclosed the performance forecast for 2021. It is estimated that the net profit attributable to the parent company in 21 years will be 230-265 million yuan, with a year-on-year increase of 63.97% – 88.92%, and the net profit attributable to the parent company in 21q4 will be 83-118 million yuan, with a year-on-year increase of 22.56% – 74.04%. Based on the high growth rate of 20q4, the net profit attributable to the parent company still maintained rapid growth, mainly due to the rapid development of various businesses, the rapid growth of operating revenue, the improvement of product structure, the improvement of gross profit level and the improvement of the overall profitability of the company. In addition, in 2021, the company’s equity incentive amortization expense and non recurring profit and loss had an impact on the net profit of about 26 million yuan and 15 million yuan respectively.
Comments:
Private brand + agent brand, dual business drive, balanced development of multi-channel, R & D + digitization to improve products and operations.
1) in terms of its own brand, yunifang launched new products, such as micro throwing 800 times, continued to upgrade the brand, optimize the product structure, improve the customer unit price, increase the gross profit margin, rapidly develop new brands and strengthen the coordinated development of brands.
2) in terms of agency brands, the water sheep international platform was fully opened. Many international brands such as doctor Chengye and Kiko performed strongly, competed differently in the direction of CP (China partner), and maintained healthy and sound development as a whole.
3) in terms of R & D, continuously increase investment and reserves, optimize preparation process and improve efficiency, participate in the issuance and implementation of two designated national standards, apply for 24 national invention patents and obtain 11 invention patents, realize optimization and mass production of enzyme digestion of small molecule hyaluronic acid, reach cooperation with Shanghai Institute of organic chemistry, Chinese Academy of Sciences, and continuously promote the construction of “one-stop product selection center”, Improve the conversion rate of R & D new products.
4) tiktok, which is accelerating the other four channels, has increased the number of GMV and billions of hands in Kwai Chung.
5) in the aspect of digitization, build a digital platform with the goal of e-commerce, online, data and intelligence.
Investment suggestions:
Syoung Group Co.Ltd(300740) continue to deepen the “four double strategies”. While the private brand continues to be optimized, the agency business also has a multi-point flowering and running mode, gradually achieve the goal of double high growth of revenue and net profit, adhere to building a multi brand, multi category, multi business and omni-channel technology beauty group based on R & D, products and brands, and go deep into the research and development of new products and the rapid launch of traffic on emerging platforms, Enable beauty with science and technology and realize long-term development. It is estimated that the profits in 22-23 years will be 350 / 520 million respectively, corresponding to the current market value of 19 / 13X. The undervalued value is highly elastic!
Risk warning: macroeconomic downside risk; Risk of intensified industry competition; The risk of new product launch is less than expected; Risk of brand development falling short of expectations
