\u3000\u30 Beijing Zznode Technologies Co.Ltd(003007) 40 Syoung Group Co.Ltd(300740) )
Core view:
Events
In 2021, the company realized an operating revenue of 5.010 billion yuan, a year-on-year increase of 34.86%; The net profit attributable to the parent company was 236 million yuan, a year-on-year increase of 68.54%; The non net profit attributable to the parent company was 215 million yuan, a year-on-year increase of 58.31%. The net operating cash flow was 199 million yuan, a year-on-year increase of 52.64%.
In the first quarter of 2022, the company realized an operating revenue of 1.046 billion yuan, a year-on-year increase of 27.96%; The net profit attributable to the parent company was 415836 million yuan, a year-on-year increase of 36.10%; The non net profit attributable to the parent company was 332185 million yuan, a year-on-year increase of 35.99%. The net operating cash flow was -138 million yuan, a year-on-year decrease of - 467.19%.
The scale growth is driven by the dual business of independent brand and agent brand, the revenue advantage of water cream is continuously strengthened, and the self owned platform and the third-party platform develop together, which is effective and win-win
Split by quarter, each quarter of 2021 achieved a significant growth compared with the same period last year, and the compound growth rate of each quarter in the past two years has basically maintained at more than 30%. Considering that the company's businesses are mainly based on online channel sales, this is more matched with the high growth environment of e-commerce channels, and less affected by the impact of the epidemic compared with comparable companies with high proportion of offline sales. 22q1 is the off-season of the whole year (the revenue of a single quarter since 2015 accounts for about 16% of the average level). On the one hand, the frequency and intensity of e-commerce promotion activities are relatively less than those in other quarters. On the other hand, consumers' demand in the first half of the year is more concentrated on sunscreen, while the demand for facial mask and other products is mainly reflected in the second half of the year. Therefore, under the background of the impact of the epidemic on the market, the company is less affected and its performance has increased steadily.
Split by channel, the main business growth in 2021 comes from: first, the revenue of third-party platforms increased slightly, contributing 66.05% of the growth of operating revenue; Second, the online proprietary platform increased by 172.45% year-on-year, and its revenue proportion increased from 3.33% in 2020 to 6.73%, which brought the structural optimization of channel revenue. Limited by the continuous rise in the price of public traffic, the company continued to operate private traffic during the reporting period. On the one hand, through its own small program "Shuiyang Chaozhuang", it increased the customer acquisition capacity and increased member user management. During the reporting period, it achieved more than 10 million new users, with a year-on-year increase of 80% in the number of transaction orders. It provided more comprehensive and personalized system services for members and became the Top1 of Alipay beauty retail small programs. On the other hand, we expanded the distribution channel "Shuiyang direct supply" and launched tob business. The newly settled cooperative distributors increased by 129.55% year-on-year, and the revenue of b-end cooperation increased by 438.8% year-on-year.
Split by category, in 2021, the company adhered to the dual business driven strategy, and both independent brands and agent brands achieved steady growth. The product structure of the company has changed, and the scale of the traditional adhesive facial mask has declined again after 2019, and its share in the revenue has gradually decreased to less than 20% from the peak level of nearly 80% in 2016; The scale of non stick facial mask also narrowed; In contrast, the revenue of water cream products increased by 69.33% year-on-year, becoming the largest revenue source of the company, and the proportion of revenue increased year by year. Considering the characteristics of low unit price and low customer stickiness of facial mask products, farishui cream products have realized the optimization of operating income structure from the perspective of category. In terms of agency brands, the company and cooperative brands have gradually entered a benign development track, and their performance has increased steadily. For example, the company has completed the layout of new social e-commerce and new media channels with the Japanese special research efficacy skin care brand doctor Chengye. The Gmv of 377 whitening and whitening essence has increased significantly year-on-year, and the sales of double 11 ranks top 1 of tmall global beauty essence; The revenue of Italian fashion cosmetics brand Kiko increased by 333% year-on-year, and that of British laboratory anti-aging brand zelens increased by 302% year-on-year; Introduce international famous cosmetics brand Cellex-C and other international brands.
In 2021, the annual comprehensive gross profit margin increased by 2.86 PCT, the period expense rate increased by 2.22 PCT, and the marketing investment expanded; 22q1 company's comprehensive gross profit margin increased by 2.32pct, and the period expense rate increased by 2.14pct
In 2021, the company's comprehensive gross profit margin increased significantly by 2.86 percentage points, realizing a significant improvement in gross profit margin. The net profit margin on sales increased by only 0.98 percentage points, mainly due to the sharp increase of 2.22 percentage points in the period expense rate, which offset the increase in gross profit margin. Among them, the sales expenses increased by 41.11% (591 million yuan) year-on-year, which is due to the company's increased marketing efforts during the reporting period, the platform promotion service fee increased by 276 million yuan to 994 million yuan year-on-year, and the brand publicity fee increased by 112 million yuan to 441 million yuan year-on-year; The increase of 0.58% in the rate of administrative expenses is mainly due to the increase in the size of the company's personnel and the increase in equity incentive expenses during the reporting period. For the restricted stock incentive plan in 2021, the company is expected to generate an incentive cost of 115 million yuan, of which 549995 million yuan is expected to be amortized in 2021; The investment in R & D increased by 38.70% over last year. During the reporting period, the company comprehensively promoted the strategy of R & D enabled products and product enabled brands by participating in the drafting of national and industrial standards, opening the basic research platform, R & D of unique raw materials and formula three generations in one. During this period, a total of 38 patents were applied for and 29 patents were authorized, including 17 invention patents. We continued to increase R & D investment and promote R & D innovation.
In 2022q1, the company's comprehensive gross profit margin further increased to 54.26%, with a year-on-year increase of 2.32 percentage points, and the net profit margin only increased slightly by 0.19 percentage points, mainly due to the sharp increase of 15.2 percentage points in the sales expense rate, which is due to the increase of the company's sales scale and higher marketing investment.
The multi brand matrix continues to advance, and the dual platform ecological strategy leads the development of the industry
Adhering to the corporate mission of "let mankind enjoy the beauty of skin", the company is committed to becoming one of the top ten beauty enterprises in the world. Over the years, the company has formed a growth model driven by private brand and agency brand. In terms of private brands, it has many brands such as "yunifang", "xiaoconfused", "dashuidi", "Yumen" and "huayaohua", and has always been committed to promoting the precipitation of brand assets, the creation of product system and the expansion of all channels. During the reporting period, on the one hand, it deepened the transmission of Tang Dynasty culture and systematically improved brand perception; On the other hand, reshape the brand positioning and expand the brand awareness of Xinyue. Bigdrop completed the brand renewal and upgrading, focusing on staying up late and skincare sub circuits; Mihoo small confused brand, reshaping brand positioning - young muscle science nursing expert, whose sales exceeded 20million in May, won the Top1 in tmall facial mask category sales that month. In terms of Acting brands, the company launched an independent and open platform "Shuiyang international" in 2018 to provide a complete set of solutions for overseas brands in the Chinese market and help Chinese consumers enjoy high-quality products and services with multicultural backgrounds all over the world. During the reporting period, we continued to deepen the ability of brand incubation and brand premium, continuously established links with overseas excellent brands, and continued to provide global diversified beauty brands with full link and full life cycle operation support to enter the Chinese market.
The company is committed to the common development of the beauty industry and build an ecological platform for the healthy development of the beauty industry from inside to outside. The company strongly supports the development of excellent brands, opens its own platform and provides capital, R & D and other resource support.
During the reporting period, for the members of "Shuiyang alliance", the company opened its R & D laboratory, used the professional equipment and raw materials of the laboratory, shared product open platform, skin feeling test platform and product quality inspection for free, and cooperated with the company's supply chain, new media operation, it digital system and other operations to provide industrial empowerment support for the members in all aspects. It has served several excellent enterprises, such as skin care knowledge sharing platform, original Guofeng new makeup brand, fragrance lifestyle personal care brand, Guochao beauty brand, head enterprises in the subdivided field of cosmetics production equipment, etc. At the same time, focusing on the internal and external enterprises of the company, we are committed to combining high-quality suppliers, brand partners, investment enterprises and brand service providers as important help to promote the common development of the industry and excellent enterprises for mutual benefit and win-win results.
R & D and digital dual technology enabling strategy, enabling brand management and improving efficiency
The company attaches importance to product R & D, adheres to technological innovation, deeply cultivates product R & D and professional fields, and comprehensively promotes the strategy of R & D of enabling products and product enabling brands through participating in the drafting of national and industrial standards, opening basic research platforms, R & D of unique raw materials and formulation of three generations in one. During the reporting period, the company applied for 38 patents and authorized 29 patents, including 17 invention patents, and continued to increase R & D investment and promote R & D innovation. In addition, the company continued to invest resources and contribute to the formulation of industry standard system, and 10 national standards such as the revised determination of plastic beads in cosmetics (GB / t401462021) and the determination of trichloroacetic acid in cosmetics (GB / t406392021) were officially released or implemented, leading the development of the industry. During the reporting period, academician Chen Jian of Chinese Academy of engineering was successfully signed as the chief scientist of the company, and successively carried out "development of new raw materials of Ganoderma lucidum herbal enzyme based on secondary fermentation technology" and "development of in vitro evaluation technology of cosmetic efficacy" with research and development institutions such as hemp Research Institute of Chinese Academy of Agricultural Sciences, Shanghai Institute of organic chemistry of Chinese Academy of Sciences and Suzhou University "Biological effect and application of biological rhythm in skin" and other projects have continuously improved the breadth and depth of the company's industry university research cooperation.
In terms of digitization, the company's organization has the characteristics of youth and digitization. The average age of employees is no more than 30. It is one of the few teams in the beauty industry with many years of digital operation experience. The company's organization has taken the lead in entering the digital and intelligent stage through the e-commerce and online stage. In 2021, based on the "dual technology empowerment strategy" and the "brand five finger brand management concept", the company's technical team built a new digital beauty platform around six digital core engines: brand, product, market, channel, operation and supply chain, providing brand managers with full link online and intelligent solutions from new brand mining to platform store opening, explosive product creation to order fulfillment, market launch to user operation, Improve brand management efficiency and empower business.
Investment advice
The company is mainly engaged in the R & D, production and sales of cosmetics. Its product brands mainly include "yunifang", "xiaoconfused", "Yumen", "dashuidi", "huayaohua", "HPH", "VAA", etc. the product categories cover the cosmetics fields such as facial mask, water cream, color makeup, personal care and cleaning. In terms of sales channels, it has established in-depth cooperative relations with mainstream e-commerce platforms such as tmall, Taobao, jd.com, vipshop, Shudian and pinduoduo. At the same time, it is sold on the shelves in Watsons, Wal Mart, Carrefour, Wanning, cosmetics stores in major cities and direct stores of the company, so as to realize the full coverage of Wuxi Online Offline Communication Information Technology Co.Ltd(300959) channels. In terms of business expansion, it actively cooperates with overseas international brands, develops overseas brand agency business by providing a full set of solutions for overseas brands in the Chinese market, and operates cross-border brands ranging from light luxury to affordable beauty and skin care categories, including Chengye medical students, Neutrogena, yifeidan and Kiko, so as to help overseas beauty brands reach Chinese core consumers. Combined with the performance expectation of the company's equity incentive plan, we give the company a forecast of realizing a revenue of RMB 6.526/84.07/10.656 billion and a net profit of RMB 357529/732 million in 2022 / 2023 / 2024, with a corresponding EPS of RMB 0.87/1.29/1.78/share and a corresponding ps0.05% 70 / 0.55/0.43 times, corresponding to pe13 / 9 / 6 times, maintaining the "recommended rating".
Risk tips
Risks of supply chain management; The risk of fierce competition in the industry; The risk that the organization, implementation and effect of raised investment projects are not as good as expected.
