\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 315 Shanghai Jahwa United Co.Ltd(600315) )
Event description
The company released the first quarter report of 2021. 22q1 company achieved a revenue of 2.117 billion yuan / + 0.11%, a net profit attributable to the parent company of 199 million yuan / + 17.81%, and a net profit not attributable to the parent company of 212 million yuan / + 6.55%.
Event comments
Many factors affect the slight growth of income, and the growth rate of profit is higher than that of income. In terms of revenue, 22q1 company achieved a revenue of 2.117 billion yuan, a year-on-year increase of + 0.11%, which was mainly affected by three factors: the impact of the epidemic, the adjustment of special channels and the lack of super head live broadcasting. Affected by the epidemic, the Wuxi Online Offline Communication Information Technology Co.Ltd(300959) business was impacted in varying degrees. The store was closed, the logistics was limited, some warehouses were closed, and the online contract could not be fulfilled, resulting in the decline of revenue. In terms of net profit, 22q1 company achieved a net profit of 199 million yuan, a year-on-year increase of + 17.81%, achieving steady growth under the high base in the same period last year; Deduct non net profit of 212 million yuan, the highest value in nearly 23 quarters, with a year-on-year increase of + 6.55%. The non recurring profit and loss was – 12.75 million yuan, which was mainly affected by the decline of the inherent value of stock funds.
The proportion of nurses / mothers and infants increased, and the offline canals increased slightly. By category, in 22q1, the company’s revenue of skin care / gejiaqing / mother and baby categories was 448 million yuan / 1.103 billion yuan / 492 million yuan respectively, with a year-on-year ratio of – 18.2% / + 11.31% / + 0.80% respectively, and the proportion of revenue was 21.18% / 52.15% / 23.30% respectively, of which the proportion of gejiaqing and mother and baby categories increased. In terms of brands, the sales of baicaoji in skin care products decreased by about 10%, and the sales of Diancui, Goff, MAXAM and Shuangmei decreased by about 15-30%, affecting the growth rate of skin care products; In Gehu Jiaqing, the sales of Liushen increased by double digits, Jiaan decreased by double digits due to the influence of special canal, and in the category of mother and baby, the sales of Qichu decreased by about 15%. By channel, Q1’s online business accounted for about 27%, down 5pct from the same period last year, and the overall online business decreased by about 13%. Among them, the e-commerce business was basically the same year-on-year, while the special channel business decreased by about 40% year-on-year. If the super head factor is excluded, the company’s e-commerce revenue increased by about 13% year-on-year; The overall growth rate of offline business is about 6%, of which the growth rate of commercial supermarket channel is about 10%, the growth rate of new retail business is nearly 30% year-on-year, the sales proportion is more than 10%, and the CS channel is down by more than 20%.
Focus on the improvement of gross profit margin of head products and high efficiency of cost control. In terms of gross profit margin, 22q1 achieved a gross profit margin of about 62.66%, a year-on-year increase of + 1.57pct, which was mainly affected by the price increase of focus head SKU and Liushen new products; The net profit margin of sales was 9.42%, with a year-on-year increase of + 1.41pct. In terms of expense rate, the expense rate of 22q1 company during the period was 51.16%, with a year-on-year increase of – 6pct, which was mainly affected by the sales / management / R & D rate of – 3.6pct / – 1.66pct / – 0.48pct respectively year-on-year. The decrease of sales rate was mainly affected by the reclassification of expenses to costs. After retroactive adjustment, the sales rate increased slightly by + 0.08pct year-on-year, and the decrease of management rate was affected by the impact of the epidemic and the decrease of travel and office expenses. 22q1’s operating cash flow was 550 million yuan, a year-on-year increase of + 10.84%, the highest level in a single quarter, mainly due to the impact of the epidemic on the final payment.
Profit forecast, valuation analysis and investment suggestions: the company continued to implement the “123” business policy, overcome the impact of special channel adjustment and the lack of direct broadcasting super head, and maintained steady growth in performance. At the brand end, focus on the SKU of the head department, the main brands continue to promote new products, and the key new products create popular models; On the channel side, adjust the channel strategy and structure, conduct fine online operation, promote the multi platform layout of e-commerce, improve the proportion of self broadcasting business, diversify the offline channel layout, expand new retail business and continuously optimize the operation efficiency. We are optimistic about the company’s sound R & D methodology, comprehensive brand assets and customer resources covered by all channels. It is estimated that the EPS of 20222024 will be 1.21/1.49/1.73 yuan respectively, corresponding to the closing price of the company on April 28 of 30.8 yuan, and the PE of 20222024 will be 25.5x/20.7x/17.8x respectively, maintaining the “Buy-A” rating.
Risk warning: strategy implementation fails to meet expectations; High end foreign brands and local cutting-edge brands bring the risk of intensified market competition; Covid-19 epidemic brings uncertainty risk to operation.
