\u3000\u3000 Shanghai Jahwa United Co.Ltd(600315) (600315)
Event:
The company issued the performance forecast for 2021.
Comments:
The performance greatly exceeded expectations, the profit margin was significantly improved, and the expense control was good
The company announced that in 2021, it is expected to achieve a revenue of about 7.66 billion yuan, a year-on-year increase of about 9%, and a net profit attributable to the parent company of about 655 million yuan, a year-on-year increase of about 52%, significantly exceeding the previous stock option incentive target (504 million in class a and 430.5 million in class B of the stock option incentive plan in August 21). In terms of quarters, q1-4 company realized a net profit attributable to the parent company of 169 / 1.17/1.35/234 million respectively, with a year-on-year increase of 42% / 82% / 5% / 98% respectively, and Q4 profit reached a new high in the quarter since 2017. In the whole year, the net profit attributable to the parent company after non deduction was about 688 million yuan, with a year-on-year increase of about 74%. It is estimated that the net profit attributable to the parent company after non deduction was about 8.98%, with a year-on-year increase of 3.35 PCT.
Skin care products with high gross profit increased rapidly, and the channel structure continued to be optimized
In 2021, the company adheres to the “123 business policy”: focusing on consumers, brand innovation, advanced channels, and continuous efforts in culture, system and process and digitization. At the brand level, the company focused on high margin skin care products and achieved good growth. In 2021, the growth rate of the whole platform on the double ten front line was 38%, the growth rate of Yuze Omni channel was 70%, and the growth rate of Diancui tmall flagship store was 5 times. Herborist’s 2021 new lamp essence is well recovered, and the new Tai Chi upgrading series is gradually increasing. At the channel level, the company is led by e-commerce business, promotes multi platform layout with fine online operation, and actively hedges the pressure of special channel adjustment. Among them, tmall platform has vigorously strengthened self broadcasting, enriched the live broadcasting matrix, maintained steady growth and improved its operation capacity; Jingdong, pinduoduo and interested e-commerce platforms continued to grow. The company actively arranged live broadcasting channels. In December 2021, the Shanghai Jahwa United Co.Ltd(600315) live broadcasting center was officially opened, with a total of 9 live broadcasting rooms, with more than 70 internal anchor and background operators. During the double 11, the sales of live broadcasting rooms increased by 400%. Offline, the overall optimization effect is outstanding, among which the department store channel has successfully improved its profitability through counter optimization and the online implementation of four seasons SPA; CS channel has achieved rapid growth in both traditional CS business and Watson business; The new retail business continues to expand. In the first three quarters of 2021, the proportion of offline business has exceeded 10%, effectively mitigating the impact of the decline of offline traffic on revenue.
Investment advice and profit forecast
Shanghai Jahwa United Co.Ltd(600315) is an old daily chemical enterprise in China. Since 2020, the company has comprehensively upgraded and adjusted its brand, products, channels and marketing strategies, and continuously optimized its business quality and profitability. We expect the company to realize revenue of RMB 7.693/94.31/10.622 billion, net profit attributable to the parent company of RMB 6.56/8.34/1.140 billion and eps0.01 billion in the 21st-23rd year 97 / 1.23/1.68 yuan, corresponding to pe39 / 31 / 23x, maintaining the “buy” rating.
Risk tips
The prosperity of the industry has declined, the competition in the brand market has intensified, and the adjustment of brands and channels is less than expected.
