\u3000\u30 Beijing Zznode Technologies Co.Ltd(003007) 40 Syoung Group Co.Ltd(300740) )
The company released its 2021 annual report and the first quarterly report of 2022. The net profit attributable to the parent company for the whole year of 21 was 236 million yuan, an increase of 69% at the same time; 22q1 net profit attributable to the parent company reached 42 million yuan, an increase of 36% at the same time. The company is driven by dual businesses, its own brands are constantly upgraded, and its brand customers operating on behalf of the company are constantly expanding, driving the growth of the company and maintaining the overweight rating.
Key points supporting rating
Since 2021, the dual business model and multi brand matrix have promoted the company's revenue and performance to rise steadily. In 2021, the company's revenue increased by 34.95% to 5.010 billion yuan and the net profit attributable to the parent company increased by 68.5% to 236 million yuan; 22q1 revenue increased by 27.96% to 1.046 billion yuan and net profit attributable to parent company increased by 36.1% to 42 million yuan. 1) By business, yunifang, an independent brand, continued its brand upgrading strategy, strengthened scientific and technological innovation and deepened brand culture, carried out Omni channel layout, created a platform for Tiktok activities Top1 beauty, and Kwai entered top3 beauty domestic products. Offline channels also doubled; Big water drops focus on staying up late and skin care sub circuit to upgrade products; Small confusion, clear brand positioning, focusing on young muscle scientific nursing; Men brand Royal men continues to cultivate products and technology. Acting as a brand business, the company has in-depth cooperation with Johnson & Johnson. The Gmv of Chengye doctor 377 whitening essence increased significantly year-on-year. Neutrogena ranked top 1 in tmall a alcohol sales and top 1 in the whole network a alcohol sales during the double 11. In addition, the company has good cooperation with other brands, including Cellex-C, zelens, and yifeidan, which contributed significantly to the annual revenue growth. 2) By category, water cream is the main force of the company's revenue growth. In 2021, the annual growth rate was 69.3% to RMB 3.239 billion, the year-on-year decline of pasted facial mask was 5.71% to RMB 895million, and the year-on decline of non pasted facial mask was 11.36% to RMB 526million. 3) By channel, the number of online self owned platforms increased by 17.2% to 337 million yuan in the whole year, and that of third-party platforms increased by 26.5% to 4.079 billion yuan; Offline increased by 61.57% to 593 million yuan.
With the upgrading of independent brands and the improvement of operation efficiency, the profitability has been significantly improved, and the overall operation is stable and upward. In 2021, the gross profit margin increased by 2.86pct to 52.1% and 22q1 gross profit margin increased by 2.3pct to 54.3%, mainly due to the company's continuous promotion of independent brand upgrading and the improvement of operation efficiency. In addition, the annual sales rate increased by 1.79pct to 40.5% and 22q1 by 3.1pct to 43.3%, reflecting the improvement. The company continued to increase brand publicity. In terms of operating capacity, the company's 22q1 inventory turnover days decreased by 22 days to 138 days year-on-year, and the turnover days of accounts receivable basically maintained (year-on-year - 1 day), reflecting the excellent and stable overall operating state of the company.
Driven by dual business, the company's revenue and profitability are expected to continue to rise in the future. In terms of independent brand business, in the future, the company will continue to strengthen R & D reserves, improve product system, timely follow up the marketing mode of the market and increase brand promotion; In order to further improve the company's ability to maintain a diversified business cycle and continue to operate in the global market, the company is building a multi brand link, so as to further improve the company's profitability in the global market.
Valuation
It is estimated that the company's revenue from 2022 to 2024 will be 6.51/83.5/10.44 billion yuan respectively, and the net profit attributable to the parent company will be 3.6/5.4/730 billion yuan, corresponding to 13 / 9 / 7 times of PE respectively. Maintain the overweight rating.
Main risks of rating
The expansion of new products is less than expected; Blocked cooperation with international brands; Industry competition intensifies.
