\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 315 Shanghai Jahwa United Co.Ltd(600315) )
Event: in 2022q1, the company achieved a revenue / net profit attributable to parent company of RMB 2.117 billion / 199 million, with an increase of 0.11% / 17.81%, deducting non net profit of RMB 212 million, with an increase of 6.55% and EPS of RMB 0.30. The company’s performance meets expectations and its profitability is gradually optimized.
Comments:
The income of skin care products is affected by short-term disturbance, and innovation driven R & D has achieved results. Disturbed by the epidemic and other factors, the revenue of skin care products business of 2022q1 company is expected to decrease by 18% at the same time. In terms of categories, affected by factors such as the adjustment of special channel and super head operation, the revenue of baicaoji and Yuze brands in 2022q1 is expected to decrease by 10% and remain the same year-on-year. 22q1 Diancui, Gough and MAXAM brand revenue decreased by about 15-30% at the same time, mainly due to the phased impact of the epidemic on offline stores. In terms of Gehu Jiaqing business, Liushen achieved double-digit growth in 2022q1, and Jiaan showed double-digit decline, mainly due to the reduction of special channels. In terms of mother and baby business, the initial revenue of 22q1 decreased by 15% and the overseas business increased slightly compared with the same period. The company focuses on explosive products, streamlines SKUs, continuously improves product innovation ability, and drives the growth of explosive products through word-of-mouth marketing. Among them, the new product Yuze “macromolecular sunscreen” seized the market demand of sensitive muscles and opened up a macromolecular sunscreen track, ranking top 1 in sunscreen items in the 4.11 tmall small black box activity; Baicaoji new seven white series is newly upgraded to provide a new experience of high-efficiency brightening for women’s skin; 22q1 classic yeast essence spray Q1 was successfully launched and achieved brilliant performance.
Diversified channel layout, focusing on refined operation strategy. By channel, the company adjusted its channel structure, refined its operation and reduced its dependence on single-mode singles. In 2022q1, the revenue of jd.com, pinduoduo, Tiktok Kwai and other platforms increased significantly. The company has made rapid progress in self broadcasting and arrival broadcasting. Among them, the self broadcasting Gmv has increased by 615% year-on-year, and the number of successful pit visits by Daren has increased by 150%. The Daren live broadcasting system has been preliminarily completed to make up for the impact caused by the lack of super head. In terms of offline channels, the company has a solid diversified channel layout. 2022q1 business supermarket channels maintained growth, in which the new retail business played a strong advantage, and the Q1 revenue increased by nearly 30%. In addition, the company actively eliminated the negative impact of the epidemic through home platform, community group purchase and cross-border channels.
The high gross profit margin continued, various expense rates continued to be optimized, and the profitability was improved. The gross profit margin of 2022q1 company was 62.66%, with a year-on-year increase of 1.57%, mainly due to the continuous focus on the head SKU, paying attention to the protection of gross profit margin, committed to improving the gross profit margin of the brand, and raising the price of some products to digest the rising pressure of raw materials. In terms of expenses, the rates of management, R & D and financial expenses of the company in 2022q1 decreased by 1.66pct, 0.48pct and 0.26pct to 9.73%, 1.50% and 0.17%, and the rate of sales expenses in 22q1 increased by 0.08pct to 39.77%. Due to the impact of the epidemic, the company reduced offline activities and meetings, reduced travel expenses and reduced depreciation and amortization expenses after the relocation of the new workplace, which promoted the net profit attributable to the parent company to increase by 17.81% to 199 million yuan in 2022q1.
Profit forecast and investment rating: the high outlook of the industry continues to be superimposed on the company’s continuous improvement in brand and product strength and channel optimization. We raised the EPS forecast for 202224 to 1.21/1.56/1.85 yuan (the original value was 1.20/1.53/1.76 yuan). At present, the stock price corresponds to 25.64 times PE in 22 years. We are optimistic about the company’s focus on R & D innovation, product innovation and continuous optimization in channel and marketing for a long time, The company is expected to further consolidate its dominant position, expand its market share and maintain its “buy” rating.
Risk factors: covid-19 epidemic rebounded, new product market acceptance was lower than expected, industry competition intensified, etc.
