\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 223 Lushang Health Industry Development Co.Ltd(600223) )
Performance review
4.29 the company announced that 1q22’s revenue was 1.482 billion yuan, a decrease of 13.08%, the net profit attributable to the parent was 66 million yuan, a decrease of 22.74%, and the net profit not attributable to the parent was 0.63 yuan, a decrease of 23.92%. The decline in income and profit was mainly due to the decrease in real estate income.
Business analysis
The cosmetics business continued to grow at a high rate, while the raw material business was stable and the pharmaceutical industry declined. 1q22 cosmetics sector has a revenue of 419 million yuan, + 95.31%, a gross profit margin of 61.56%, and a gross profit of 29%. Sub brands: Yilian / Dr. Yier / other brands, with a revenue of 162 / 225 / 32 million yuan; The revenue of the pharmaceutical sector was 90 million yuan, – 25.74%. Affected by the epidemic, the revenue decreased, with a gross profit margin of 55.46%, accounting for 6%; The revenue of raw materials and additives was 77 million yuan, + 3.96%, the gross profit margin was 34.63%, and the gross profit accounted for 5%. Freida Pharmaceutical Group’s consolidated 1q22 revenue is 541 million yuan, + 49.3%, the net profit attributable to the parent is 32 million yuan, + 0.2%, and the net interest rate is 5.9%, – 1.5pct.
The real estate business is under pressure. 1q22 healthy real estate has a revenue of 856 million yuan, – 31.85%, accounting for 59%, a contracted amount of 777 million yuan, – 75.6%, and a contracted area of 79100 square meters, – 72.2%; The new construction area is 196000 square meters, – 66.43%; The completed area is 207400 square meters, – 18.28%, mainly due to the recession of the real estate industry and the company’s strategic transformation.
With the increase of the proportion of cosmetics business, the gross profit margin and sales rate increased. 1q22 net profit margin is 4.48% (-0.96pct) and gross profit margin is 41.06% (+ 8.41pct). The period expense rate is 30.3% (+ 11.2pct), of which the sales expense rate is 20.01% (+ 7.58pct), the management expense rate is 6.59% (+ 0.2pct), and the financial expense rate is 3.75% (+ 2.52pct). The increase in financial expense ratio was mainly due to the increase in long-term borrowings (+ 311 million yuan). The net interest rate is 4.48% (-0.96pct).
1q22 inventory turnover 1970 days (+ 410 days), accounts receivable turnover 9 days (+ 4 days). The net cash flow from operating activities was – 350 million yuan (year-on-year – 600 million yuan), and the change in operating indicators was mainly due to the decrease in sales receipts of 1q22 real estate business.
Investment advice
The cosmetics business continued to promote the “4 + n” strategy and continued high growth. The biomedical sector contributed about 50% of the net profit, which is optimistic about the continuous optimization of the company’s profitability. Maintain the 22-24 year profit forecast, eps0 55 / 0.74/0.98, cagr3 was 39.6%, maintaining the “buy” rating.
Risk tips
Real estate policy regulation risk; Competition in the cosmetics industry is intensifying, and the incubation of new brands is less than expected.
