\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 315 Shanghai Jahwa United Co.Ltd(600315) )
The operation quality was steadily optimized, and the net profit margin after deducting non parent company was increased to 10.02%. In the first quarter, the company achieved a revenue of 2.117 billion yuan (YoY + 0.11%), a net profit attributable to the parent company of about 199 million yuan (YoY + 17.81%), and a net profit not attributable to the parent company of about 212 million yuan (YoY + 6.55%), of which the non recurring profit and loss of – 13 million yuan was mainly due to the decline in the fair value of stocks / funds held. During the period, the growth rate of revenue was affected by the epidemic, special channel reform and exchange rate fluctuations. Some order logistics were limited and did not perform in the short term. According to our tracking judgment, excluding accidental factors, the actual growth rate was about 10%. During the period, the overall gross profit margin increased by 1.57pcts to 62.66%, mainly due to the continuous concentration of head SKUs and the strengthening of brand strength, the sales rate increased by 0.08pcts to 39.77% and the management rate decreased by 1.66pcts to 9.73%, mainly due to the reduction of offline travel and other activities caused by the epidemic and the reduction of depreciation and amortization after workplace relocation, which led to the increase of the overall parent net profit margin by 1.42pcts to about 9.42% and the deduction of non parent net profit margin by 0.61pcts to 10.02%. During the period, the operating indicators were stable and positive, the inventory / receivable turnover days were evenly divided into 110 days / 43 days, and the operating cash flow at the end of the period was 550 million yuan (YoY + 10.84%), the highest in a single quarter in history.
The product side overcame the impact of the epidemic, promoted new products as scheduled, and advanced to build head SKU driven growth. By category, in the first quarter, the revenue of skincare / gejiaqing / mother and baby was – 18% / + 11% / + 1% year-on-year respectively, of which the average selling price of gejiaqing increased by 12.8%, mainly because Liushen and others raised the price of some products to absorb the rising pressure of raw materials, and the brand strength was recognized by the market feedback. In terms of sub brands, according to our follow-up calculation, in skin care, Yuze’s revenue in a single quarter was flat year-on-year (increased by about 23% after excluding the super head factor), and baicaoji / Diancui / Goff / MAXAM decreased by about 10% – 30% year-on-year, mainly due to the phased impact of the epidemic in offline stores; In the Qing Dynasty of Gehu family, Liushen expects double-digit growth, and Jiaan will fall by double-digit due to the influence of special canal; Among mothers and infants, the same decline was seen at the beginning of the year, with a slight increase year-on-year overseas. The company continues to strengthen the creation of explosive products and pays attention to the follow-up joint effect of head SKU. During the epidemic period, Yuze launched new products as scheduled. Yuze broke through research and development to crack down on macromolecular sunscreen, strengthened medical research cooperation at the beginning of Qichu to launch special care cream for infants and young children, and Diancui launched new high-quality products such as yeast spray. Baicao collection is expected to continue to upgrade the new 700 Series in the future. The company practices the product creation methodology, continuously explodes new products through consumer insight + R & D empowerment, and strengthens the joint set sales between subsequent categories. With the concentration of head SKU driving the strengthening of brand strength, the customer list and gross profit are expected to improve steadily and drive the excellent growth of performance.
The channel side has strengthened internal strength and strategic cooperation to enhance quality and efficiency in a coordinated manner. By channel, according to our tracking judgment, the offline / online channel revenue increased by – 13% / + 6% respectively in the first quarter. 1) Among online channels, e-commerce was flat year-on-year (increased by about 13% after excluding the super head factor), and special channels decreased by 40% due to the impact of life insurance reform. The company continues to increase the multi platform direct marketing layout to reduce its dependence on the super head. For the traditional e-commerce platform, it continues to deepen its operation through digital empowerment and strategic cooperation, and strengthens its internal strength in emerging channels such as Tiktok / Kwai. After the voice of the people’s broadcast is heard through cooperation, it gradually increases the size of the self broadcast, and achieves the unity of product and efficiency in combination with the differentiated layout of goods. The distribution structure of channel expenses gradually focuses on brand construction from promotion discount, and the profit model is continuously optimized; 2) In offline channels, supermarkets increased by 10%, department stores were flat year-on-year, and CS decreased by 20%. In the context of the epidemic, the new retail business has prominent advantages over the traditional CS, maintains high-speed growth, and the proportion of Watson online continues to increase. In addition, we have continued to increase cooperation in various modes such as home platform, community group purchase and exclusive product creation, and diversified layout has effectively helped the company increase quality and efficiency in a coordinated manner throughout the region.
Profit forecast and investment suggestions. The company has implemented the 123 strategic policy, continuously improved its business quality, achieved initial results in the implementation of various plans on the product / marketing / channel side, and has strong anti risk ability under the background of repeated epidemics. Based on the performance of the first quarterly report, we adjusted and predicted that the revenue from 2022 to 2024 will be 8.22/92.4/10.43 billion yuan respectively, and the net profit attributable to the parent company will be 7.5/9.1/1.06 billion yuan respectively. The current market value of the company is 20.9 billion yuan, corresponding to 28 times of PE in 2022, maintaining the “buy” rating
Risk tip: the epidemic repeatedly affects offline sales, the adjustment process does not meet expectations, and the brand or new product promotion effect does not meet expectations
