\u3000\u30 Zhongyan Technology Co.Ltd(003001) 46 By-Health Co.Ltd(300146) )
Event: By-Health Co.Ltd(300146) released the report for the first quarter of 2022. During the reporting period, the company realized operating revenue / net profit attributable to the parent company / net profit attributable to the parent company after deduction of non-profit of RMB 2.280/6.63/681 billion, yoy + 2.60% / – 18.78% / – 10.77%.
Overseas business contributed to the growth of revenue, and cross-border e-commerce contributed to the growth of overseas performance.
Affected by the high base in the same period of 21 years and the epidemic, 22q1 company achieved a revenue of 2.28 billion yuan, yoy + 2.60%. 1) Domestic business: ① from the perspective of products, By-Health Co.Ltd(300146) / jianliduo / life space achieved revenue of 1.292/4.19/97 billion yuan respectively, yoy-6.50% / – 14.20% / + 46.49%. Affected by the epidemic prevention and control in China, the company’s domestic business is under pressure. ② By channel, the revenue of offline / online channels is yoy-0.94% / – 10.65%. 2) In terms of overseas business, LSG achieved revenue of 168 million yuan, yoy + 25.28% (AUD caliber revenue of 37 million AUD, yoy + 37.56%), which was mainly affected by the following factors: ① cross border e-commerce business maintained rapid growth; ② 21q1 Australia has a low local business base.
The gross profit margin increased year-on-year, and the net profit margin was under pressure.
The gross profit margin / net profit margin of sales in the first quarter was 69.61% / 29.15%, yoy + 2.72pct / – 7.95pct. Benefiting from the upgrading of product structure, the proportion of online direct sales and the strengthening of gift management, the gross profit margin of 22q1 increased year-on-year. From the cost side, the sales cost rate of 22q1 was 25.87%, yoy+7.73pct, which was mainly due to the increase in platform costs and brand promotion costs, mainly from brand promotion and signing of Gu ailing during the Beijing Winter Olympic Games, as well as the increase in the proportion of online direct sales, and the increase in the cost investment of new e-commerce platforms such as Tiktok and Kwai. The management fee rate of 22q1 was 4.60%, yoy + 1.65pcts, which was mainly due to the low base caused by the adjustment of bonus payment in 21q1. The financial expense rate is -0.33%, yoy-0.03pct. In addition, the change in fair value of 22q1 company’s investment fund holdings lost 50.68 million yuan (0 yuan in 21q1), further putting pressure on the net interest rate.
Continue to deepen sales reform and actively face the challenges of the epidemic.
22q1 company continues to deepen the transformation of offline sales and Wuxi Online Offline Communication Information Technology Co.Ltd(300959) integrated operation launched in July 21. The company mainly assisted the transformation through the digitization of the whole marketing chain and the nutrition day group of 1000 people. In the first quarter, the on-the-job rate of the nutrition day group was close to 90%, and actively carried out tens of thousands of offline consumer focused marketing activities and brand promotion activities, so as to effectively improve the company’s control and competitiveness of offline terminals. With the subsequent improvement of the epidemic situation and the recovery policy of logistics distribution, the company is expected to achieve steady growth under the low base of last year.
Profit forecast, valuation and rating: considering the impact of the epidemic and the uncertainty of the time of obtaining the approval, we lowered the forecast of the company’s net profit attributable to the parent company from 2022 to 2024 to RMB 2.04124152844 billion (9.4% / 12.8% / 10.7% lower than the previous time respectively), equivalent to EPS of RMB 1.20/1.42/1.67 from 2022 to 2024, corresponding to PE of 17x / 14x / 12x from 2022 to 2024, maintaining the “overweight” rating.
Risk tip: economic growth slows down, pressure increases, industry competition intensifies, and food safety problems.
