\u3000\u30 Shaanxi Zhongtian Rocket Technology Co.Ltd(003009) 57 Yunnan Botanee Bio-Technology Group Co.Ltd(300957) )
Recently, the company released the first quarter report of 2022 and the annual report of 2021. In 2022, the company’s Q1 revenue, net profit attributable to the parent and net profit deducted from non attributable to the parent increased by 59.32% / 85.74% / 61.82% respectively year-on-year. In 2021, the company’s revenue, net profit attributable to the parent and net profit deducted from non attributable to the parent increased by 52.57% / 58.77% / 58.59% respectively year-on-year. The performance exceeded expectations due to the simultaneous increase in the volume and price of skin care products and the continuous high growth of online channels.
2022q1 increased brand awareness, resulting in increased revenue and increased publicity.
In 2022q1, the company’s revenue increased by 59.32% year-on-year. The company’s core brand “Winona” continued to push through the old and bring forth the new, paid attention to publicity and improved brand awareness; Operating costs increased by 61.71% year-on-year, of which sales expenses increased by 66.61%, mainly due to the increase of wages and salaries and advertising expenses; The gross profit margin decreased by 0.32pct year-on-year, which was relatively stable. Product side: the volume and price of skin care products have increased simultaneously, and the revenue of medical devices has increased rapidly.
In terms of products, the company’s revenue of skin care products, medical devices and cosmetics in 2021 changed by + 53.75% / + 67.12% / – 18.76% year-on-year respectively. The revenue of skin care products was 3.629 billion yuan, accounting for 90.22%. Due to the increase of 58.56% in operating costs, the gross profit margin was -0.75pct year-on-year.
In terms of production and sales volume, in 2021, the production volume increased by 81.44% year-on-year and the sales volume increased by 55.30% year-on-year, which is due to the planned production increase of the company to meet the business growth. Among them, the output of skin care products increased by 69.87% and the sales volume increased by 54.65%, which was due to the improvement of brand influence.
In terms of average price, the average selling prices of skin care products, medical devices and cosmetics in 2021 were 49.80 yuan, 98.60 yuan and 44.48 yuan respectively, with a year-on-year change of + 8.71% / – 0.06% / + 16.75% respectively. Among them, the average selling prices of skin care products in the first and second half of the year were 50.36 and 49.50 yuan respectively, which was caused by changes in market demand and periodic promotion activities.
Channel side: Online self operated platform orders surge, brand effect appears.
In 2021, the company’s online and offline channel revenue increased by 51.94% and 57.76% respectively year-on-year, with the former accounting for 82.04%. In online channels, the revenue of self operated mode increased by 52.72% year-on-year, and the revenue of distribution and commission sales increased by 49.42% year-on-year. Among the main self built online platforms: the number of registered users was 2.9835 million, with an increase of 853200; The average customer unit price was 111250 yuan, a year-on-year decrease of 8.84%; The average number of daily orders was 38714, a year-on-year increase of 41.05%. In offline channels, the revenue of self operated mode decreased by 34.52% year-on-year, and the revenue of distribution and consignment mode increased by 58.72% year-on-year. The expenses of publicity and e-commerce channels increased, and the financial investment and projects under construction increased the cash outflow from investment activities.
In 2021, the company’s cash outflow from operating activities increased by 50.67% year-on-year, which is due to the increase in brand publicity, personnel and e-commerce channel expenses. The company’s cash outflow from investment activities increased by 947.62% year-on-year, which was caused by financial investment and the construction of a new central factory base project. Strengthen brand building and improve the layout of marketing channels.
In 2022, the company will continue to focus on the main brand “Winona”, moderately expand its sub brands, and further improve the marketing strategy of Wuxi Online Offline Communication Information Technology Co.Ltd(300959) combination.
Investment suggestion: we expect the operating revenue of the company from 2022 to 2024 to be 5.95 billion yuan, 8.284 billion yuan and 10.791 billion yuan respectively, and the net profit attributable to the parent company to be 1.292 billion yuan, 1.88 billion yuan and 2.584 billion yuan, corresponding to PE of 64.69x, 44.47x and 32.34x. Give a “buy” rating.
Risk tip: seasonal fluctuation risk of sales, relative concentration risk of brands and intensified industry competition.
