\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 223 Lushang Health Industry Development Co.Ltd(600223) )
The company’s 2022q1 revenue decreased by 13.1%, and the net profit attributable to the parent decreased by 22.7%
The company released the first quarterly report of 2022: in 2022q1, the company achieved a revenue of 1.482 billion yuan (- 13.1%) and a net profit attributable to the parent company of 66 million yuan (- 22.7%). The company’s strategic transformation and the downturn of the real estate market led to the decrease of real estate business income and the decline of overall operating performance, but the cosmetics business continued its rapid growth trend. We maintain the profit forecast unchanged. It is estimated that the net profit attributable to the parent company from 2022 to 2024 will be RMB 651 / 806 / 983 million, corresponding to EPS of RMB 0.65/0.80/0.97, and the current share price corresponding to PE of 13.2 / 10.7 / 8.8 times, maintaining the “buy” rating.
The cosmetics business continued to grow rapidly, the raw material business was stable, and the pharmaceutical and real estate business declined
Cosmetics: revenue of 419 million yuan (+ 95.3%) continued to grow rapidly, with a gross profit margin of 61.56%; Among them, Yilian brand and Dr. yu’er brand achieved revenue of 162million yuan /225million yuan respectively, and new products such as flash essence and hyaluronic acid spray 2.0 performed brilliantly. Medicine: the revenue was 90 million yuan (- 25.7%), and the gross profit margin was 55.46%. Affected by the epidemic, the revenue declined. However, during the reporting period, two national key R & D projects were completed and two municipal key laboratories were approved, and the R & D capacity was strengthened. Raw materials: the revenue was 77 million yuan (+ 4.0%), and the gross profit margin was 34.6%, with steady growth. On the whole, Freida Pharmaceutical Group (consolidated caliber) achieved a revenue of 541 million yuan (+ 49.3%) and a net profit attributable to the parent company of 32 million yuan (+ 0.2%) in 2022q1. Real estate: the revenue was 856 million yuan (- 31.9%), with a large decline, which was mainly affected by the real estate market situation and the company’s strategic transformation. In recent years, the company has focused on the development of asset light business, promoted the in-depth transformation of the industrial chain, and the proportion of non real estate business has increased steadily. In addition, the company’s comprehensive gross profit margin in 2022q1 is 41.1% (+ 8.4pct), and its profitability is gradually increasing.
The ecological health sector is actively transforming, and the biomedical sector can expect high growth
Cosmetics: focusing on the “4 + n” brand development strategy, Yilian, Dr. yu’er and Shanyan were selected into the first batch of “haopin Shandong” public brand catalogue; In 2022, Dr. hu’er will focus on the offline skin and beauty Research Institute, and Yilian will deeply explore the concept of “hyaluronic acid +” and are expected to maintain a relatively large growth. Medicine: continue to promote organizational change around “innovation and improvement”, and it is expected to return to the growth track after the epidemic eases. Raw materials: accelerate the brand construction of “Baifu” and other high-end raw materials, improve the added value of products and gross profit margin of raw materials business through “hyaluronic acid + derivatives”. Real estate: on the premise of ensuring stability, the company actively promotes the transformation of ecological health sector and waits for the recovery of the industry.
Risk tip: market competition intensifies, the company’s new product promotion is less than expected, and the real estate industry is in a downturn.
