\u3000\u30 Beijing Zznode Technologies Co.Ltd(003007) 40 Syoung Group Co.Ltd(300740) )
Event: the company released the annual report of 2021 & the first quarterly report of 2022. In 2021, the revenue will reach 5.01 billion yuan, yoy 34.4 billion yuan 86%； The net profit attributable to the parent company was 236 million yuan, yoy68 million yuan 54%, the net interest rate attributable to the parent company was 4.72%, up 0.94pct; The net profit attributable to the parent company after deducting non-profit is 215 million yuan, yoy58.5% 31%。 In 2022q1, the operating revenue was 1.046 billion yuan, yoy27.7 billion yuan 96%； The net profit attributable to the parent company was 42 million yuan, yoy36.5% 10%, the net interest rate attributable to the parent company was 3.98%, up 0.24pct; The net profit attributable to the parent company after deduction of non-profit is 33 million yuan, yoy35.5% 99%。
Revenue side: by quarter, 21q1-22q1 achieved revenue of 8.17/13.02/11.93/16.98/1.046 billion yuan respectively, yoy58.5 billion yuan respectively 03 / 45.11/28.72/23.59/27.96%, the company's own brand continued to grow, and the agency business also grew rapidly. In terms of business, in 2021, 1) in the year of 21, the pasted facial mask achieved a revenue of 895million yuan, yoy-5.71%, accounting for 17.87%, year-on-year -7.69pct; 2) in the year of 21, the non pasted facial mask achieved a revenue of 526million yuan, yoy-11.36%, accounting for 10.50%, year-on-year -5.48pct; 3) in the year of 21, the water cream achieved a revenue of 3.229 billion yuan, yoy 69 33%, accounting for 64.64%, yoy + 13.16pct. In terms of channels, online channels achieved revenue of 4.42 billion yuan in 2021, yoy + 31.93%, accounting for 88.15% of revenue and yoy-1.96 PCTs; Amoy and its own platforms achieved revenue of 2.301337 billion yuan respectively, yoy + 18.72% / 172.45%, accounting for 45.93% / 6.73% (the company's omni-channel development strategy continued to deepen, and Amoy platform contributed about half of the revenue).
Cost side: the gross profit margin in 2021 was 52.07%, with an increase of 2.86pct, mainly due to the further optimization of the structure of main lines. In terms of products, the gross profit rates of patch facial mask, non patch facial mask and water cream were 58.38%/73.12%/42.17% and 17.87%/10.50%/64.64% respectively. By quarter, the gross profit margin from 21q1 to 22q1 was 51.94% / 53.89% / 57.61% / 46.83% / 54.26% respectively, with an increase of 2.32pct in 2022q1.
Cost side: during 2021, the expense rate was 46.40%, with a year-on-year increase of 2.22pct, of which the sales expense rate was 40.50%, an increase of 1.79pct; The management fee rate was 3.86%, with an increase of 0.58 PCT, mainly due to the growth of the company's personnel scale and the increase of equity incentive expenses; The R & D expense rate was 1.32%, with an increase of 0.04pct; The financial expense rate is 0.72%. During 2022q1, the expense rate was 50.08%, with an increase of 2.14pct, of which the sales expense rate was 43.34%, with an increase of 3.08pct; The management fee rate was 4.33%, with a decrease of 0.16pct; The R & D expense rate was 1.78%, with a decrease of 0.30pct; The financial expense rate is 0.63%.
Cash flow: in 2021, the net cash flow from the company's operating activities was 199 million yuan, yoy52.5% 64%； By the end of 2021, the monetary capital was 440 million yuan, yoy-4.2%, and by 2022q1, it was 385 million yuan, yoy-1.0% 0%。
Investment suggestion: Syoung Group Co.Ltd(300740) continues to deepen the "four double strategy". While the private brand continues to optimize, the agency business also has a multi-point flowering and running mode, gradually achieve the goal of double high growth of revenue and net profit, adhere to building a multi brand, multi product, multi business and omni-channel technology beauty group based on R & D, products and brands, deepen the research and development of new products and the rapid launch of traffic on emerging platforms, and empower beauty with science and technology, Achieve long-term development. We expect the profit of 22-23 years to be 360 million / 530 million respectively, corresponding to the current market value of 13 / 9x, and give a buy rating.
Risk warning: macroeconomic downside risk; The risk of intensified industry competition; The risk that the new products are not listed as expected; Risk of brand development falling short of expectations
