\u3000\u30 Shaanxi Zhongtian Rocket Technology Co.Ltd(003009) 57 Yunnan Botanee Bio-Technology Group Co.Ltd(300957) )
Event:
The company released the first quarterly report of 2022, and achieved a revenue of 809 million yuan in Q1 of 2022, yoy + 59.32%; The net profit attributable to the parent company was 146 million yuan, yoy + 85.74%, and the net interest rate attributable to the parent company was 18.06%, an increase of 2.57 PCT; The net profit attributable to the parent company after deducting non recurring items was 124 million yuan, yoy + 61.82%, and the net interest rate attributable to the parent company after deducting non recurring items was 15.39%, with an increase of 0.24pct. The non recurring profit and loss in 2022q1 was 21.55 million yuan, mainly from entrusted financial management.
Comments:
On the revenue side, in 2022q1, we expect that the online revenue will increase year-on-year. We will carry out various marketing activities such as “New Year’s Day”, “Valentine’s Day” and “38 goddess day” on the online platform dominated by tmall, constantly expand new products, fully expose them, effectively stimulate sales, enrich private play methods and actively empower them; ② The offline revenue is expected to increase year-on-year and continuously improve the service quality.
On the cost & expense side, the gross profit margin in 2022q1 reached 77.82%, with a decrease of 0.33pct. During 2022q1, the expense rate was 58.99%, with an increase of 0.76pct, of which the sales expense rate was 48.02%, with an increase of 2.1pct; The R & D expense rate was 3.83%, with a decrease of 0.67 PCT; The management fee rate was 7.58%, with a decrease of 0.41 PCT; The financial expense rate is -0.44%.
In terms of cash flow, the net cash flow generated from the company’s operating activities in 2022q1 was – 167 million yuan, yoy-429.12%, mainly due to the payment for the purchase of means of production and productive services according to the supply chain plan, the continuous and accurate investment in brand image promotion (Zhang Junning, spokesman of the new official sunscreen category) and e-commerce channel expenses. The net cash flow generated from investment activities was – 289 million yuan; As of 2022q1, the monetary capital was 1.576 billion yuan.
In terms of operation capacity, the inventory turnover days in 2022q1 were 238.35 days, an increase of 24.73 days; The turnover days of accounts receivable are 28.36 days, with a decrease of 2.11 days; The turnover days payable were 149.78 days, an increase of 43.2 days.
Investment suggestion: Winona, the company’s main brand, ranks first in the Chinese market of Dermatology grade skin care products, and its leading advantage continues to expand. Build a multi-function skin care matrix to help the spiral expansion of the brand; The brand influence and market position of sub brands have been gradually improved, and the brand matrix strategy of “focusing on the main brand and expanding sub brands” has been continuously deepened. Based on dermatology theory, the company has in-depth insight into consumer needs, continuously improves product matrix, promotes multi brand strategy, and takes “building China’s skin health ecology” as its mission to anchor the future of the cosmetics market. It is estimated that the net profit of 22-24 years will be 1.18/16/2.08 billion yuan, maintaining the “buy” rating.
Risk warning: industry competition intensifies the risk; The risk that the marketing model cannot adapt to market changes; Risk of relative concentration of sales platform and brand
