\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 315 Shanghai Jahwa United Co.Ltd(600315) )
The company released Q1 performance in 2022, and the profit was in line with expectations. The revenue of 2022q1 was 2.117 billion / yoy + 0.11%, and the revenue growth rate decreased, which was mainly affected by many aspects: 1) the epidemic disturbed the company’s delivery rhythm and logistics, and some offline stores were closed, which had a certain impact on the company’s performance; 2) Ping An Life insurance reform led to the narrowing of the special channel, and the Q1 impact continued, and the retail reform of the special channel continued to advance; 3) At the end of 2021, the super head structure was adjusted, disturbing the income performance of baicaoji, Yuze and other brands; 4) Exchange rate impact, etc. 22q1 realized the net profit attributable to parent company of 199 million / yoy + 17.81%, and the net profit attributable to parent company after deducting non-profit was 212 million / yoy + 6.55%, and the profitability was in line with expectations.
The margin of profitability was improved, and the results of cost reduction and efficiency increase were remarkable. In 2022q1, the gross profit margin was 62.66%, an increase of 3.93 PCTs year-on-year in 2021. The head focused SKU strategy was significant. In addition, the price raising strategy of Liushen brand was recognized by the market and increased the gross profit margin. The sales expense ratio is 39.77%. The sales personnel are streamlined, but the brand launch and e-commerce launch are improved. The company lists the refined operation and sales expense ROI of e-commerce as the top ten projects in 2022. The company will hedge the super impact through self broadcast. It is expected that the cost launch will continue to be optimized and gradually realized; The management fee rate is 669.73% / -; The operating quality has been continuously improved. The net interest rate attributable to the parent company is 9.42% / + 1.41pcts, and the net interest rate attributable to the parent company after deducting non profits is 10.02% / + 0.61pcts.
Skin care products are innovated and upgraded, and the management organization enables the company to grow rapidly. Grasp the three cores of high-end + efficiency + scale, follow the two strategies of focusing on head products and reducing long tail products, gradually launch new products, and promote the growth of explosive products through word-of-mouth marketing. (1) Yuze: launched new sunscreen products of “macromolecular platinum shield” and opened up a track of macromolecular sunscreen sub category. Tmall flagship store ranked third in tmall skin care industry and first in macromolecular sunscreen category on the day of tmall small black box activity. It is optimistic about the large volume of new products on the basis of barrier repair series; At the same time, the company opened stores in Tiktok and Kwai, and began to make efforts to broadcast live to make up for the short-term lack of super head; (2) Baicaoji: department store channel and Sephora jointly create a product line for Taiji; The official spokesperson of “boboshui” is optimistic about the continuous promotion of product strategy; (3) Liushen: in the first quarter, the price increase contributed to the growth of performance, and the brand became younger year by year. With the Chairman Pan Qiusheng as the core, the management team is further built and improved. Focusing on the blessing of the “123” strategy, gradually promote the brand-R & D PMO one-to-one communication service mode, simplify the internal organization process and improve the communication efficiency.
Refined operation was promoted online, and some offline channels were disturbed by the epidemic. (1) Online channels: at the end of 21, actively adjust the channel strategy and structure to resist the impact of special channel adjustment and super head loss. Excluding the impact of super head, the e-commerce revenue increased by 13% year-on-year, the self broadcast Gmv increased by 615% year-on-year, accounting for more than 16% of e-commerce, the number of internalized live broadcasting rooms expanded to 8, and the number of anchor speakers increased by 24%. In addition, a reach broadcasting matrix was initially established, and the two tracks were promoted simultaneously. (2) Offline channels: although slightly affected by the epidemic, the closing rate of traditional CS, department stores and Watson’s stores was nearly 30%, the supermarket maintained a growth trend. The new retail business increased by nearly 30% year-on-year, accounting for more than 10%. The sales of commercial channels, community group purchase and cross-border channels increased by 201%, 170% and 71% year-on-year respectively.
Investment suggestion: reorganize from the brand, channel, digitization, marketing and other dimensions, look forward to the Centennial rejuvenation of domestication, consider the repeated impact of short-term epidemic and exchange rate fluctuations, reduce the net profit attributable to the parent company from 2022 to 2024 to 765 million / 984 million / 1184 million, and the corresponding PE is 27x / 21x / 18x, maintaining the “overweight” rating.
Risk tip: the prosperity of the cosmetics industry is at risk of decline; The risk of intensified competition in the cosmetics industry; The risk that the strategic promotion is not as good as expected; The promotion of new products was less than expected.
