\u3000\u30 Beijing Zznode Technologies Co.Ltd(003007) 85 Beijing Zhidemai Technology Co.Ltd(300785) )
Event: on April 26, the company released its 2021 annual report and 2022q1 quarterly report. In 2021, the company achieved revenue of 1.403 billion yuan / year-on-year + 54.26%, of which Beijing Zhidemai Technology Co.Ltd(300785) achieved revenue of 1.045 billion yuan / year-on-year + 25.72%, and new business of 358 million yuan / + 357.20%; Net profit attributable to parent company: 180 million yuan / year-on-year + 14.50%; Deduct the net profit not attributable to the parent company of 168 million yuan / year-on-year + 16.67%. Among them, the operating revenue in the fourth quarter was 480 million yuan / year-on-year + 31.38%; The net profit attributable to the parent company is 757511 million yuan / year-on-year + 5.63%; Deduct the net profit not attributable to the parent company of 730999 million yuan / year-on-year + 4.10%. In terms of customers, the proportion of e-commerce customers / brands' revenue in 2021 was 47.22% / 52.78% respectively, and the proportion of brands' customers' revenue continued to increase. In 2022q1, the company realized an operating revenue of 251 million yuan / + 6.55%, a net profit attributable to the parent company of - 22 million yuan / - 184.19%, deducting a net profit not attributable to the parent company of - 26 million yuan (a profit of 216266 million yuan in the same period last year).
Beijing Zhidemai Technology Co.Ltd(300785) main station grew steadily and the community atmosphere was further strengthened. 1) The liquidity was enhanced and gmv218 was confirmed throughout the year 3.6 billion yuan, a year-on-year increase of + 7.76%; The overall commission rate was 4.79%. The growth rate of Gmv was lower than that of revenue, but the commission rate increased, mainly because the company continued to distribute diversified content after revision, and the proportion outside 3C category increased. 2) Monthly living increased steadily, reaching 373891 million in 2021, a year-on-year increase of + 11.16%; The community atmosphere was further strengthened. In 2021, the annual content release volume was 156364 million, with a year-on-year increase of + 64.93%, of which the user editing release volume reached 11.258 million, with a year-on-year increase of + 45.33%, accounting for 72.01%, and the total number of content interactions reached 2.43 billion, with a year-on-year increase of + 9.19%. After the short-term revision, the average daily startup times and average daily stay time of mobile users decreased, which were 9.15 times / 12 minutes and 37 seconds respectively, with a year-on-year increase of -3.48% / - 9.67% respectively.
New businesses are beginning to take shape and blossom at many points. The company's new business includes full link matching service for commodity and media matching, agent operation service and brand marketing service. Among them, we estimate that the company's matching business, agent operation business and brand marketing business will achieve revenue of about 100 million yuan, 185 million yuan and 74 million yuan respectively in 2021. 1) full link matching service: in December 2021, Xingluo served more than 28000 merchants, more than 4000 cooperators and more than 38 million orders. 2) Agent operation business: in 2021, Xingluo DP developed rapidly. Its customers mainly focused on brand customers in personal care, clothing and comprehensive categories, and ranked among the top three service providers in the personal care industry for many times. Its customers include P & G group, L'Oreal China, BeiLingFei, Tiktok payment, etc. 3) Brand marketing services: reach in-depth cooperation with dozens of MCNS and hundreds of KOLs to serve shounong food group and other brands.
Under the change of business structure and the investment of expenses in the early stage, the profitability is slightly under pressure. In 2021, the company's gross profit margin was 57.13%, a year-on-year increase of -10.20pct. The gross profit margin of the sub businesses is differentiated. The gross profit margin of the company's information promotion / Internet effect marketing / operation services / commodity sales / brand marketing is 65.41% / 69.09% / 20.57% / 10.49% / 8.97% respectively. The overall gross profit margin decline is mainly due to the relatively low gross profit margin of operation services, and the overall gross profit margin decline is caused by the development of new businesses. The sales expense ratio and management expense ratio increased from -2.64pct / - 0.65pct to 19.82% / 11.70% year-on-year respectively. The company's new business development carried out employee investment, the employee salary expense rate increased from 25.79% to 26.17%, and the advertising expense rate was -4.07pct year-on-year. Overall, in 2021, the net profit margin attributable to the parent company was 12.79%, a year-on-year increase of -4.44pct.
The performance of 2022q1 is affected by the epidemic and is expected to move towards high-quality growth and continuous optimization in the future. In 2022q1, the income growth rate under the influence of the epidemic was lower than expected, and the labor costs and expenses invested on the premise were relatively rigid, resulting in some pressure on the profitability of the company: the gross profit margin in 2022q1 was 48.29%, with a year-on-year increase of - 12.66%; The ratio of sales / management and R & D expenses was + 2.12% / + 1.91% / + 1.48% year on year respectively; Overall, the net profit margin attributable to the parent company in 2022q1 was -8.69%, with a year-on-year increase of -19.69pct. It is expected to further optimize the business structure and profitability throughout the year, and is expected to move towards higher quality growth.
Investment suggestion: in the short term, since March, the outbreak of the epidemic in many scattered places in China has caused disturbance, and the investment of some brands and platforms has been reduced to a certain extent, resulting in pressure on the company in the first quarter. In 2022, the company will adhere to high-quality growth, optimize investment, improve quality and efficiency. It is expected that the main business will be stable, the new business will increase rapidly and is expected to contribute profits. In the long run, the original business will adapt to the trend of transformation, constantly improve the content ecological construction, and open up new growth space; Under the background of the rapid development of live broadcast e-commerce such as Tiktok & Kwai, the new business has accumulated advantages and is expected to increase. We expect the company to realize a net profit attributable to the parent company of 209 / 255 / 313 million yuan from 2022 to 2024, corresponding to EPS of 2.4 / 2.9 / 3.5 yuan, the current price corresponding to PE of 15x / 12x / 10x, maintaining the "buy" rating and the target price of 47 yuan.
Risk warning: new business expansion is not as expected; Industry competition intensifies; Changes in e-commerce platform policies; Policy supervision risk.
