\u3000\u30 Zhongyan Technology Co.Ltd(003001) 46 By-Health Co.Ltd(300146) )
Event: the company released the first quarterly report of 2022, and 22q1 achieved a revenue of 2.28 billion yuan, a year-on-year increase of + 2.60%; The net profit attributable to the parent company was 663 million yuan, a year-on-year increase of – 18.78%; Deduct the net profit not attributable to the parent company of 681 million yuan, a year-on-year increase of – 10.77%.
Domestic business is under pressure, life space Chinese products grow against the trend, and the annual volume can be expected. From the perspective of different channels, the revenue growth of domestic offline / domestic online / overseas LSG business of 22q1 company was – 0.94% / – 10.65% / + 25.28% respectively. The domestic business faced a high base in the same period of last year, which was mainly affected by the repeated epidemic and prevention and control in China, the passenger flow of offline drug stores declined, the delivery of online goods in many regions was blocked, and the external environment of the company’s operation was under great pressure; Overseas LSG business is growing rapidly. In terms of sub brands, By-Health Co.Ltd(300146) main brand / jianliduo / life space Chinese products in domestic business achieved revenue of 1.292 billion yuan, 4.19 billion yuan and 97 million yuan respectively, with a year-on-year growth rate of – 6.50% / – 14.20% / + 46.49%. Life space Chinese products have a bright growth rate and perform well in pharmacies and e-commerce channels. They are a large single product focused by the company on focusing on media and resource investment, with a high growth period of 22 years.
Under the change of product and channel structure, the increase of gross profit rate and the increase of sales expense rate are the main reasons for the decrease of net profit rate. The annual sales expense rate is expected to remain stable compared with the previous year. 22q1’s gross profit margin was 69.61%, with a year-on-year increase of + 2.72pct. We believe that it is mainly affected by the change of product structure and the increase in the proportion of online direct channels; The sales expense ratio / management expense ratio / R & D expense ratio / financial expense ratio are 25.87% / 4.60% / 1.38% / – 0.33% respectively, with a year-on-year increase of + 7.73pct / + 1.65pct / + 0.68pct / – 0.03pct respectively. The increase of 22q1 sales expense ratio is mainly due to the increase of platform expenses and brand promotion expenses. It is the focus of Q1 product publicity of the company during the Winter Olympic Games in February. However, in the whole year, the company implements the dynamic control of full cost to full cost ratio budget, and the sales expense ratio is expected to remain stable compared with the previous year; The increase in the rate of administrative expenses was mainly due to the lower base due to the adjustment of bonus payment to offset administrative expenses in the same period of last year. Affected by the above comprehensive impact, the net interest rate of 22q1 company was 29.15%, a year-on-year decrease of 7.95pct.
In 2022, we will focus on improving business quality and look forward to recovery after the epidemic. We believe that the impact of the epidemic on the flow and logistics delivery of pharmacies has led to the short-term pressure on the company’s multi-channel. However, the reform of the company since July 21 is expected to be adjusted in place in the first half of 22 years. In 22 years, the company takes the improvement of operation quality as the core, and the online channels strive to improve the profit rate at the same time of high growth. The offline channels are expected to usher in recovery after the reform is in place and the epidemic situation is controlled.
Investment suggestion: we look forward to the recovery of the company’s performance after the epidemic and the high growth of life space against the trend. It is expected to maintain high growth under the cultivation of resources. It is estimated that the company will achieve a revenue of RMB 8.531103.03/12.307 billion from 2022 to 2024, with a year-on-year growth rate of 14.8% / 20.8% / 19.4% respectively; The net profit attributable to the parent company was 1.916/23.56/2.813 billion yuan, with a year-on-year growth rate of 9.2% / 23.0% / 19.4%, corresponding EPS of 1.13/1.39/1.65 yuan and corresponding valuation of 17.8/14.5/12.1 times, maintaining the “buy” rating.
Risk tip: the competition of e-commerce channels intensifies; The promotion of new products is less than expected; Weak terminal consumption; Goodwill impairment risk
