\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 315 Shanghai Jahwa United Co.Ltd(600315) )
Key investment points
Event: the company released the first quarterly report of 2022. In the first quarter of 2022, the operating revenue was 2.12 billion yuan, with a year-on-year increase of 0.1%, the net profit attributable to the parent was 200 million yuan, with a year-on-year increase of 17.8%, and the net profit deducted from non attributable to the parent was 210 million yuan, with a year-on-year increase of 6.6%.
Revenue remained stable and the channel structure continued to be optimized. In the first quarter of 2022, the company’s revenue remained stable year-on-year. Affected by the epidemic, offline factories and logistics were shut down for a short time and are gradually recovering; Affected by the reform of the special canal, the proportion of revenue has decreased; Excluding the revenue increment brought by super head live broadcasting in the first quarter of 2021, the e-commerce channel improved year-on-year in the first quarter of 2022. Under the pressure of previous channels, the company is actively adjusting the channel structure, launching emerging platforms online, and carrying out strategic cooperation with various commercial groups offline, and still maintained a relatively stable operating revenue year-on-year.
Profitability has increased steadily, and the product strategy has achieved remarkable results. The gross profit margin of the company increased to 62.6pp in the first quarter of 2021.6pp, up from a year earlier. The company adheres to the SKU simplification strategy and focuses on the head SKU. The main brands Yuze and baicaoji continue to launch large single products, build brand reputation and create a popular economy. At the same time, it drives the associated sales of related products, improves customer unit price and improves profitability, with remarkable results. In the first quarter of 2022, the company’s sales expense rate was 39.8%, a year-on-year decrease of 3.6pp, the management expense rate was 9.7%, a year-on-year decrease of 1.7pp, the R & D expense rate was 1.5%, a year-on-year decrease of 0.5pp, the financial expense rate was 0.2%, a year-on-year decrease of 0.3pp, the overall expense rate decreased year-on-year, and the net interest rate increased.
Wuxi Online Offline Communication Information Technology Co.Ltd(300959) multi platform operation and strengthen business cooperation. The company adheres to the multi platform and multi-channel operation mode, increases the launch of emerging platforms such as Tiktok through online channels, and carries out brand marketing and publicity through the combination of self broadcast and Da broadcast, so as to broaden the reach of customers and give full play to the function of interested e-commerce; Offline channel companies continue to promote counter upgrading and counter entry, and improve customer stickiness through member operation mechanism. At the same time, the company actively cooperates with commercial groups, including Watson’s, Sephora and other head chain cooperation for product lines. Department store supermarkets and community group purchases also maintain close cooperation to improve the channel profit structure. At the same time, the company carries out various marketing activities such as popular IP co branding to expand the brand influence in an all-round way.
Profit forecast and investment suggestions. It is estimated that the company’s EPS from 2022 to 2024 will be 1.20 yuan, 1.51 yuan and 1.84 yuan respectively, and the net profit attributable to the parent company will maintain a compound growth rate of 24.5% in the next three years. Considering the continuous optimization of the company’s channel structure and remarkable achievements in product strategy, the “hold” rating is maintained.
Risk tips: repeated impact of the epidemic, the launch of new products does not meet expectations, and the industry competition intensifies
