\u3000\u30 Beijing Zznode Technologies Co.Ltd(003007) 40 Syoung Group Co.Ltd(300740) )
Event:
The company issued the 2021 annual report and the first quarterly report of 2022.
Comments:
The revenue and net profit increased rapidly, and the profitability improved steadily
In 2021, the company achieved a revenue of 5.010 billion yuan, a year-on-year increase of 34.86%, and a net profit attributable to the parent company of 236 million yuan, a year-on-year increase of 68.54%. In 2021, the equity incentive target was achieved, and the net profit after deducting the impact of share based payment was 259 million yuan, a year-on-year increase of 81.12%. In the 21st year, the gross profit margin of the company was 52.07%, with a year-on-year increase of 2.87pct, and the product structure was improved to improve the gross profit level. The sales expense rate was 40.50%, with a year-on-year increase of 1.79 PCT, and the management expense rate was 5.18%, with a year-on-year increase of 0.63 PCT, mainly due to the increase of equity incentive expenses. In the first quarter of 2022, the company achieved a revenue of 1.046 billion yuan, a year-on-year increase of 27.96%, and the net profit attributable to the parent company was 415831 million yuan, a year-on-year increase of 36.10%.
The private brand is renewed and upgraded, and the agent brand profit model is continuously optimized
In terms of sub brands, the company continued to develop its own brands and product categories, upgraded the main brand yunifang brand, optimized the product structure and channel structure, and increased the proportion of water cream to 64.64%. Cutting edge brands are deeply involved in subdividing the track, big water drops focus on staying up late for skin care, star single product big water drops staying up late facial mask and potential single product 3-point acne removing essence are quickly started; Little confusion redefines scientific skin care. In terms of Acting brands, the company continued in-depth cooperation with more than 50 international brands, such as doctor Chengye, Rogaine, Japanese and French Sumi skin care brand yifeidan, British laboratory anti-aging brands zelens and Kiko, and its profitability continued to improve. Kiko successfully incubated the second largest single product shuilian huami powder, and at the same time entered a benign development track with Johnson & Johnson. In the past 21 years, international brands such as Cellex-C, a famous international cosmetics brand, and mestik, a Spanish professional skin management theater brand, were introduced. In terms of channels, the operation capacity of all channels was further improved, and the offline channels still doubled under the influence of the epidemic; The operation capacity of private traffic has been continuously improved, with 10 million new users in 21 years,; Expand the distribution channel “Shuiyang direct supply”, with more than 10000 new cooperative distributors settled, with a year-on-year increase of 129.55%, and the revenue of b-end cooperation increased by 438.8%.
Investment advice and profit forecast
The company actively strengthens the multi brand omni-channel operation ability, and the self owned brand + agent brand business is driven by two wheels. The product structure of the main brand yunifang has been continuously optimized, with the rapid growth of cutting-edge brands, the rapid development of taowai and the steady development of offline channels. At the same time, the profit margin of Johnson & Johnson’s agency business has entered a steady state, the profit models of other agency brands have been gradually optimized, and the overall orientation is basically good. It is estimated that from 2022 to 2024, the company will realize a net profit attributable to the parent company of 350 / 590 / 721 million, EPS of 0.85/1.43/1.75 yuan and pe30 / 18 / 15x respectively, maintaining the “buy” rating.
Risk tips
Brand market competition intensifies, new brand incubation does not meet expectations, and the profit rhythm does not meet expectations.
