\u3000\u30 Beijing Zznode Technologies Co.Ltd(003007) 40 Syoung Group Co.Ltd(300740) )
Event: the company released the annual report of 2021 and the first quarterly report of 2022. In 2021, the annual operating revenue reached 5.01 billion yuan, a year-on-year increase of 34.9%; The net profit attributable to the parent company was 240 million yuan, a year-on-year increase of 68.5%. Q4 achieved an operating revenue of 1.7 billion yuan in 2021, with a year-on-year increase of 23.6%; The net profit attributable to the parent company was 90 million yuan, a year-on-year increase of 32%. In 2022, Q1 achieved an operating revenue of 1.05 billion yuan, a year-on-year increase of 28%, and a net profit attributable to the parent company of 40 million yuan, a year-on-year increase of 36%. Revenue performance maintained a steady growth trend.
Wuxi Online Offline Communication Information Technology Co.Ltd(300959) made concerted efforts, driving high revenue growth with dual businesses. In 2021, the company's revenue maintained a steady growth trend. From the perspective of channels, the revenue of its own online channel platform was 340 million yuan, a year-on-year increase of 172.5%, and that of the third-party platform was 4.08 billion yuan, a year-on-year increase of 26.5%; Offline channels achieved a revenue of 590 million yuan, a year-on-year increase of 61.6%. The company has actively expanded its own channels "direct supply of water sheep", with more than 10000 new cooperative distributors, and its own platform has achieved rapid growth; Offline companies actively cooperate with Watsons and other head chains, and the sales of facial mask products rank second in Watsons' domestic products. In terms of products, the revenue of pasted facial mask was 900million yuan, a year-on-year decrease of 5.7%, that of non pasted facial mask was 530million yuan, a year-on-year decrease of 11.4%, that of water cream was 3.24 billion yuan, a year-on-year increase of 69.3%, and that of brand agent was 330million yuan, a year-on-year increase of 32%. The revenue of the company's facial mask products declined, but at the same time, the water cream grew strongly, the product structure was further optimized, the product matrix was expanded, and the overall business indicators were improved. In terms of regions, China achieved revenue of 3.71 billion yuan, a year-on-year increase of 23.9%, and foreign countries achieved revenue of 1.3 billion yuan, a year-on-year increase of 80.8%. The company continues to establish cooperation with overseas excellent brands, broaden the forest of agency brands, and gradually increase its contribution to revenue.
The product structure was optimized and the profit model continued to improve. In 2021, the gross profit margin of the company was 52.1%, with a year-on-year increase of 2.9pp, and the net profit margin was 4.7%, with a year-on-year increase of 1pp. The increase in gross profit margin is mainly due to 1) the improvement of product structure. Currently, water cream products account for 64.6% and facial mask products account for 28.4%, while the gross profit margin of water cream and pasted facial mask has increased year-on-year. 2) the improvement of channel structure. The company actively promotes its own distribution channel "water sheep direct supply" and private small program "water sheep tide makeup", and strengthens multi-channel and multi platform operations. In 2021, the company's sales expense ratio was 40.5%, with a year-on-year increase of 1.8pp, the management expense ratio was 3.9%, with a year-on-year increase of 0.6pp, and the R & D expense ratio was 1.3%, which remained stable year-on-year. The company has increased its brand marketing investment, laid out new platforms such as Tiktok, Kwai and small programs, and continued to expand the market influence of its own brands and agency brands.
Adhere to the "four double strategies" and work together in multiple dimensions to build a large beauty group. The company adheres to the development strategy of dual technology empowerment, dual business channels and dual platforms with "independent brand as the core and dual business drive of private brand and agent brand" to achieve the goal of double high growth. The company's main brand "yunifang" is continuously increasing its research and development efforts. Cutting edge brands such as "big water drop" and "small confusion" will focus on the customer groups of subdivided tracks through differentiated brand positioning, and will accelerate the upgrading and transformation of brand image as a whole and further improve profitability; In terms of Acting brands, the cooperation with Johnson & Johnson has entered a benign development track, and its performance has increased steadily. In addition, it has continuously introduced new overseas excellent niche brands, provided all factor and all channel agency services, and stepped into the ranks of large beauty groups.
Profit forecast and investment suggestions. It is estimated that the company's EPS from 2022 to 2024 will be 0.92 yuan, 1.41 yuan and 1.92 yuan respectively, and the net profit attributable to the parent company will maintain a compound growth rate of 49.6% in the next three years. Considering the dual business drivers of the company's own brand and agency brand, the main brand continues to transform and upgrade and maintains the "buy" rating.
Risk tips: exchange risk, increased competition risk, brand upgrading less than expected risk.
