\u3000\u30 Shaanxi Zhongtian Rocket Technology Co.Ltd(003009) 57 Yunnan Botanee Bio-Technology Group Co.Ltd(300957) )
Event overview: the company announced that in 2022, Q1 company realized revenue of 809 million yuan / yoy + 59.62%,
Net profit of 145 million yuan / yoy + 84.04%, net profit attributable to parent company 146 million yuan / yoy + 85.74%, net profit not attributable to parent company 124 million yuan / yoy + 61.82% deducted Non recurring gains and losses are mainly financial investment income + government incentives.
Online + offline multi-channel operation, superimposed category expansion, driving high income growth. Sub channels: 1) the online business grew rapidly in Tiktok / jd.com. Under the background of traffic diversion, the company achieved a year-on-year growth of 50% in Taobao channel revenue. Private domain operations precipitated re purchase, and the estimated revenue was yoy50%; 2) Offline OTC channel revenue is yoy + 160%. At present, it covers 29000 OTC outlets (20 Jinzai Food Group Co.Ltd(003000) are newly added in 2022q1), and Watson’s revenue is yoy + 40-50%. In addition, the company has made smooth progress in the construction of brand stores. Sub products: according to the company’s performance meeting, the sales of large single product special care cream / sunscreen / repair essence maintained growth, the sales of freeze-dried facial mask exceeded 30million, and the sales of new whitening / repair series products increased significantly. In addition, the company continued to launch new products + new marketing empowerment in 2022q1: 1) launch three new heavy-duty products, light bottle / transparent white spot essence / transparent white spot essence; 2) Enrich private domain “playing methods” – New Year’s day, Valentine’s day, goddess’s day and outing day, and actively enable private domain operation; 3) Active brand marketing, Zhang Junning was hired as the sunscreen spokesperson to create a logical channel + strong product strength and rich matrix. The performance of two wheel drive 2022q1 increased significantly. It is expected that the products will still be in large quantities on May 25 skin care day and June 18 Shopping Festival in 2022q2.
High quality profitability continued and the level of net interest rate further improved. The gross profit margin of sales was 77.82%/yoy-0.32pct, and the net profit margin of sales was 17.99%/yoy+2.42pct. The slight decrease in gross profit margin was mainly due to the increase in epidemic prevention costs and returns, and the rapid growth in sales of products with relatively low gross profit superimposed on facial mask series. In 2022q1, the company’s sales / management / R & D expenses were RMB 388/ 61 / 31 million, yoy+66.52%/+48.78%/+34.78%, and the corresponding sales / management / R & D rate was 48%/7.6%/3.8%, yoy+2.1pct/-0.4pct/-0.7pct. The inventory turnover days 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 of accounts payable were 149.78 days, an increase of 43.2 days.
Winona baby and aoxmed sub brands are worth looking forward to. In 2021, the company’s new brand “Winona baby” became the “dark horse” in the field of children’s skin care. In 2022q1, the company contributed nearly 30 million yuan of revenue, and it is expected to continue the high-speed growth trend throughout the year. The company endows the new brand “aoxmed” with important strategic significance. The brand positioning is high-end and faces major overseas brands. According to the company’s performance meeting, 400500 terminal medical and beauty institutions are expected to be deployed offline in South and North China this year. In addition, the company will lay out the “beauty answer” brand focusing on skin repair for a long time, so as to further expand the market segment and is expected to bring new performance growth points.
Investment suggestion: the company is a leading skincare company at the dermatology level, with strong product + R & D + channel capability. We believe that under the overall pressure of the macro economy, the continuity and certainty of its high-quality profitability are more valuable. At the same time, the 2022q1 performance disclosed by Meihu leading companies at home and abroad recently has boosted the overall investment confidence in the sector. It is estimated that the net profit attributable to the parent company in 22-24 years will be 1293 / 1638 / 2079 million yuan, The corresponding EPS is 3.05/3.87/4.91 yuan and the corresponding PE is 65 / 51 / 40x, maintaining the “recommended” rating.
Risk tip: the epidemic re spreads and the macro economy is down.
